Head of Rostec State Corporation Sergei Chemezov & Putin Chat

Plus, a short note about the Iranian Conflict.

Armed with folio and notes, the Kremlin tells us this:

The head of Rostec reported on the implementation of the state defense order, the modernization of military equipment and the development of airspace control systems and electronic warfare. Separately, they discussed the increase in the production of civilian products, including medical products.

For those who don’t know, Rostec is the largest most powerful state corporate conglomerate not just in Russia but globally, whose website has an English version, allowing you to explore what it does and also its history which can be read by clicking the “about” button. Yes, I say this every time Rostec’s Director comes to chat with Putin and understand it’s 100% publicly owned. Nothing like it exists in the West. I do suggest learning about its history because its birth stands at the core of Russia’s economic recovery. The chat revealed to us is short since much of it is classified. Okay, so what did they say:

V. Putin: How are you, Sergey Viktorovich?

S. Chemezov: Dear Vladimir Vladimirovich, the year has come to an end. In 2024, we summarized the results of all our enterprises, formed a consolidated budget and report. Today, I would like to present you with some results of our financial activities and the overall performance of our enterprise corporation.

We continue to meet the challenges of strengthening the security, defense capability and industrial independence of our country. This was, is, and will continue to be a key priority. I would like to note that even in the face of sanctions and a difficult macroeconomic situation, we continue to show steady growth: revenue increased by 27 percent compared to last year and today amounts to 3 trillion 610 billion [rubles]. Net income increased by 119 percent to $ 131 billion 500 million. The output per employee has also increased by 20 percent compared to last year, reaching 5.2 million rubles per person. The investment volume has reached 676 billion, which is a record high in many years. This is primarily due to the increase in the state defence order and the need to expand the capacity of our enterprises and modernise them in order to meet the state defence order.

As for the state defense order, 80 percent of all weapons currently used in the special military operation are produced by our enterprises, and in 2024, the production of new light armored vehicles and tanks increased by 1.1 times, ammunition for barrel artillery increased by 1.3 times, ammunition for light armored vehicles and tanks increased by 2.1 times, and ammunition for multiple rocket launchers increased by 1.7 times. I would like to draw your attention to the fact that this is only for one year, and if we compare it with 2021, our production has increased tenfold. In general, the implementation of the state defense order is traditionally at a fairly high level, with a percentage of 99.5.

V. Putin: And 100 percent for critical positions?

S. Chemezov: Yes, 100 percent for critical ones.

We are constantly working to improve the equipment that we produce. We have direct contact with the military personnel who use and work with our equipment. Our repair teams are located near the front lines, so they have direct contact. We take into account all the suggestions and comments, and we constantly upgrade our equipment.

I can give you an example: the well-known Pantsir. Today, it's the Pantsir-SMD-E model. It differs from the previous model in that it has mini-missiles, and the ammunition capacity has increased fourfold. Instead of twelve missiles, it now has 48 missiles. This is crucial for providing protection against drones, as twelve missiles may not be sufficient during a massive attack. However, 48 missiles are much better, and our military is delighted with this improvement.

We've created a robotic platform that can transport cargo on the battlefield, evacuate the wounded, deliver ammunition, and even act as a kamikaze.

V. Putin: "The Dispatch"?

S. Chemezov: Yes, it's called "The Dispatch."

Now, as for electronic warfare: We have a new system, a new complex called Serp-VS13D, which is capable of detecting and suppressing FPV drones and previously invulnerable drones with a wider frequency range. Serp is currently installed at many defense enterprises, including ammunition factories, and provides adequate protection against drone attacks.

We have also developed an airspace control system, which includes our High-Precision Complexes holding company, which consists of mini-radars. These radars are designed to detect stealthy targets, such as drones. When paired with the Pantsir system, they can effectively engage and destroy these targets. Additionally, if these radars are used solely for detecting stealthy targets, the information is immediately transmitted to the air defense control center, where appropriate measures are taken to eliminate them.

As for civilian products, we are working to increase the share of civilian products. Last year, we had 35 percent, but this year, we have 30.7 percent, which is a decrease of 4.3 points. However, in absolute terms, we are still growing: the volume of civilian product sales has increased, and our revenue has increased by 11.6 percent, reaching 1 trillion 108 billion, which is a third of our total revenue.

What are some specific examples of new civilian products that we have today? First of all, of course, there is the 2000VH five-axis milling machine center. This is the first time we have produced such a center in Russia. It is designed for the aircraft engine industry and defense enterprises, and it can handle large parts weighing up to five tons with an accuracy of hundreds of millimeters.

Energy-based waste disposal: in 2019, we started building waste incineration plants, and we were supposed to build four plants in the Moscow region and one in Tatarstan. Due to the COVID-19 pandemic and subsequent sanctions, the construction process was delayed, and we did not complete the first plant until December 2024. It's important to note that we did not receive any budget funds for the construction of these plants. Instead, they were built using private investments, our own resources, and primarily through loans.

V. Putin: You owe me, Sergey Viktorovich.

S. Chemezov: Unfortunately, yes. We have built it, and it is already operational. Today, we have generated 100 million kilowatt-hours of green energy and destroyed more than 200,000 tons of municipal waste, which was previously sent to landfills. This plant now processes over two thousand tons of waste per day.

We are 92 percent ready for the second plant, and we will complete it next year. Of course, we do not have enough money, but we are currently negotiating with banks to obtain some preferential loans. However, we will also use some of our own funds. I assure you that another plant will start operating next year.

The remaining three factories – two in the Moscow region and one in Kazan – will have to be frozen until better times when there will be cheaper money or some kind of government assistance, if possible.

As for medicine, we have a very modern new cancer scanner. Similar scanners are produced in Japan, Germany, and China. Our cancer scanner is much better than the Chinese one, but it is also as good as the Japanese and German ones. What is it? It is a digital platform that uses artificial intelligence to analyze glass slides containing human biopsy material and provides results within a few minutes. Previously, it took two to three weeks to diagnose cancer in patients. And not only that, unfortunately, 40 percent of errors result. Why? Because a person is still tired – I mean, a doctor who looks at a microscope – can make a mistake. And here the percentage of errors is reduced by eight times, that is, instead of 40 [percent] remains five.

V. Putin: Yes, if artificial intelligence believes...

S. Chemezov: He just compares it with the existing database. Five percent of errors remain, but it depends on the database. If an error is introduced into the database, it may manifest itself.

Our Metallist plant, together with the Bauman Moscow State Technical University, has created a knee module with microprocessor control. We have visited our CITO (Center for Innovative Technologies in Orthopedics) facility, where our doctors provide assistance to soldiers returning from the Special Military Operation with serious injuries, and this module is being used there. You have instructed us to open 25 such centers throughout Russia. We have already opened them in Kurgan, Kursk, Izhevsk, St. Petersburg, and the Moscow region, with the most recent center opening just a week ago.

Of course, we provide assistance to our students. Since 2022, our center has produced over 6,000 prosthetics, including more than 30% of bioelectric prosthetics with microprocessor control.

KAMAZ has created a truck with a manual control system, and they have also developed an elevator that can lift a person into the cab, even if they have no legs but can still drive the car. This provides an additional opportunity for people to return to normal life and find employment, even if they have suffered severe injuries.

As for our teams, of course, all these achievements were made thanks to our unique team: Today, we have about 700,000 specialists working in various fields. We are already the largest employer among industrial enterprises in Russia. Since 2022, we have added more than 100,000 people, but this is not the limit–-we still need to hire about 130,000 workers, including 30,000 engineers, by 2028.

We have quite good conditions. Now the wages have increased–-today it is about 107 thousand rubles, it is quite a decent wage. Plus we also give a social package: this is voluntary medical insurance, payment of sanatorium and resort services, housing programs, non-state pension provision and so on. The volume of social expenditures in 2024 was 23.7 [billion]–-this is 35 percent more than it was last year.

Of course, we try to attract young people by visiting schools, technical schools, and universities. With the support of our enterprises, 200 engineering classes have been opened in schools, where 5,500 students are studying robotics, programming, biotechnology, and other engineering sciences. We have also sent more than four thousand students to universities through targeted recruitment.

V. Putin: We are creating a reserve of personnel.

S.Chemezov: Yes, we are creating a personnel reserve, because otherwise it is difficult to attract young people. However, we are working on this together with the Ministry of Education and the Ministry of Science, and we see a lot of support from these ministries.

Thanks to a lot of work on career guidance, today, in 2025, school graduates–-50 percent of these graduates – have chosen mathematics as a profile exam for passing the Unified State Exam, more than 21 percent–-information technology, and 16 percent–-physics. This just shows that young people have already gone from economists and lawyers to engineering universities, they like it much more.

V. Putin: From the humanities to the natural sciences.

Sergey Viktorovich, what is the state of your titanium production?

S. Chemezov: Today, of course, we have the enterprise loaded, maybe not completely, but nevertheless… Basically, we work for our aviation, helicopter enterprises.

But since the Americans have left, our joint venture with Boeing has unfortunately been frozen, so our production has decreased.

V. Putin: I understand that they suffered damage from this withdrawal?

S. Chemezov: Of course. They brought a large number of modern machines here, we have created an entire production. Not only that, we have created five of the most super-modern alloys together with them, but we own the intellectual property 50 to 50.

V. Putin: For the aviation industry?

S. Chemezov: For the aviation industry, yes.

V. Putin: Okay, good. Thank you. [My Emphasis]

A very impressive short list report. Clearly, obtaining additional financing outside the national budget presents problems. particularly with the rate have been so high, although that’s now rapidly being eased. Upgrading Pantsir’s ammo load was important. It appears Rostec has close to reached the pinnacle of its production amounts without further expansion and additional personnel. The swicth-about seen with students is clearly in response to exhortations coming from many sources. The advances happening in medicine is substantial along with the innovative thought given to providing amputees the ability to lead productive lives. Do note what’s a crucial hangover from the Soviet Era where large corporations make significant contributions to the social welfare of the people. And as you’ve already read, Rostec has its fingers into most every economic niche that exists with the waste disposal systems engineered to generate electricity being yet another example.

Did Putin and Chemezov discuss supplying Iran with Rostec products? Possibly, but that would be part of their classified discussion along with other aspects of the state defense order. As far as I’m aware, Rostec is unique; no other nation has a similar sort of conglomerate. In two years, it will be 20 years old. IMO, it outperforms all other military industrial corporations on the planet while doing so much more for Russia’s civilian economy.

As for the Iran-Zionist/Collective Western Empire conflict, there’s very little to say because there’s very little info being released by either side, although Iran’s more open. Ansarallah appears to be the only entity knowing the only way to really demilitarize the Zionists and end their genocide is to invade Occupied Palestine with ground forces; they’ve made formal requests to the Saudis and Jordanians to allow them to transit their nations to do just that. Iran could easily amass several million troops to do the same thing. What by now ought to be very clear is the Iranian nuclear program has always been a ruse to veil the real aim—Regime Change. A review of post-WW2 Outlaw US Empire history shows that to be the main aim in all its wars beginning immediately in 1945 with the political war against the Resistance Forces that helped oust the Nazi collaborator governments in France, Italy, Netherlands, and Greece as well as in Vietnam, Korea, Indonesia, and capped by Cuba. Similar policy was followed by the colonial nations in Africa. Iranians already know what it’s like to suffer regime change and aren’t about to let it happen again. I’ll admit being surprised by Pakistan’s government standing by its neighbor, while I have little faith that the two Turkic nations—Azerbaijan and Turkey—will behave similarly. A credible person has suggested looking at the Algerian experience as being a possible template for future Zionist behavior. And in closing, I’ll echo what Larry Johnson has written and said: The Old Testament opens with Genesis where all are made in god’s image—ALL—including those later deemed unworthy—Amalek. The loving, creating god at the outset suddenly morphs into a god that only favors one tribe and calls on it to destroy what god created. No, the narrative got changed to fit the situation as we’ve seen plenty in our Modern Era. Thus, the entire rationale provided by the Zionists to justify their Genocide is 100% false, and the Zionists are just as guilty as Hitler and other genocidalists that came before him using their falsely proclaimed Exceptionalism as justification for the carnage they wrought.

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