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First deputy PM opposes semiconductor imports to Russia

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ST. PETERSBURG, March 21 (RIA Novosti) - Russia's first deputy prime minister questioned Wednesday the need to import semiconductors, citing economic reasons and potential threats to national security.

Russia has started the implementation of the state defense program until 2015 approved by the government's defense industry commission in June last year, which envisions a comprehensive modernization of existing military equipment and procurement of advanced weaponry.

"It is obvious that new weapons must be developed with the use of cutting-edge technologies and latest scientific discoveries, including in the sphere of electronic components," Sergei Ivanov said at a meeting of the Military-Industrial Commission.

He said that a key area to the development of the domestic military electronics industry was the design and production of semiconductors and microwave integrated circuits, which are widely used in a variety of weapons systems, including early-warning radars, global positioning satellites, S-300 and S-400 air defense complexes and MiG-29 and Su-27 aircraft.

"I think everybody realizes that purchasing these [electronics] components abroad in the required quantities is rather questionable, both in the economic sense and from the point of view of national security," said the first deputy PM.

Ivanov, who has been recently entrusted with the important task of supervising the country's defense industry, said earlier that the defense industry had demonstrated an average production growth rate of 7% in the last five years, while overall industrial production grew by only 4.5% during the same period.

In addition, the defense industry accounts for 70% of all scientific and research output in the country, and employs more than 50% of all researchers, he said.

Russia's military spending will total over 860 billion rubles ($32.42 billion) of federal budget funds in 2007, 23% more than in 2006.

Under this year's budget, signed into law by the president at the end of last year, total spending is set at 5,463.5 billion rubles ($206 billion).

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