Speaking to Cabinet ministers, Vladimir Putin said: "I have signed a decree to form the Federal Agency for the Procurement of Weaponry, Military and Special Equipment and Materiel."
Earlier reports said the new civilian body responsible for the procurement of weaponry and equipment for all security-related agencies in the country would be formed by January 1, 2008.
The agency will be primarily involved in concluding state contracts with companies for defense orders, financing state contracts and ensuring their fulfillment. The agency will also be entrusted with forming a unified pricing policy for the purchase of military equipment.
"This is an area that requires special attention," Putin said, charging the prime minister and his deputy to oversee related efforts.
The Defense Ministry said in January that this year's spending on the procurement of new military hardware is estimated at over 300 billion rubles ($11.3 billion), 20% higher than in 2006.
