Military-Industrial Committee to Gain New Functions: Draft Law Receives Positive Review

The National Assembly Standing Committee on Defense and Security of the Republic of Armenia has given its approval to the draft law on "Amendments and Addenda to the RA Law on the Military-Industrial Complex" following its first reading. The draft, presented by the Ministry of High-Tech Industry, outlines four new regulatory procedures aimed at expanding the functions of the Military-Industrial Committee within the legislative framework.

During the September 27 session of the NA Standing Committee on Defense and Security Affairs, RA Minister of High-Tech Industry, Mkhitar Hayrapetyan, introduced the proposed amendments. Once enacted, the law will enable the committee to develop and implement four key procedures, such as financing of military goods and test samples; design, coordination, and implementation of R&D projects; conducting national tenders for the production, acquisition, and storage of military goods, including spare parts, components and prototypes, outcome of special military engineering works; regulating the procurement and storage of military goods and their components. 

During the session, the Minister stressed the importance of establishing a legislative framework for program budgeting within the Military-Industrial Complex, which includes an allocation of AMD 1.5 billion for producing test samples. He also noted that the new regulations would improve the efficiency of ongoing projects. The Minister pointed out a persistent challenge, that prototypes developed through R&D efforts, often funded by private companies, are not guaranteed to proceed to serial production or receive national orders. These companies face uncertainty, which the new law aims to mitigate by establishing clearer procedures.

Regarding R&D efforts, the Minister confirmed that the current AMD 4.1 billion budget for 2024 would be maintained in the next fiscal year. He emphasized that innovation and new technological solutions are vital to the advancement of Armenia's military industry and the modernization of its armed forces.

The third major aspect of the draft law concerns the national testing of military products, their components and the outcome of special R&D works. The Minister highlighted the need for regulating national testing standards, streamlined bureaucracy, and the adoption of innovative military standards to improve efficiency in this area.

Lastly, the fourth procedural change addresses the logistical difficulties faced by private companies in procuring raw materials and components for military production, particularly in emergency situations. The new regulations aim to shield the industry from such disruptions.

In closing, the Minister addressed the questions from MPs Kristine Poghosyan, Gegham Manukyan, and Vilen Gabrielyan, providing detailed responses to their inquiries.