The government will establish a Bank for the operations of the state defense order

© RIA Novosti / Alexei Filippoupolitis in fotobanka T-90MS on military-technical forum Army. Archival photoThe government will establish a Bank for the operations of the state defense order© RIA Novosti / Alexei Filippoupolitis the image Bank

The government will create a reference Bank for operations for defense procurement and major government contracts, the report said the Ministry of Finance.

The organization will provide Bank support, to carry out calculations with contractors and defense companies, as well as to lend to them.

The Bank will be an extensive network of offices. Soon it will be transferred to the state property.

In November last year, Deputy head of the Ministry of defence Tatiana Shevtsova said that authorities are discussing the possibility of creating a separate Bank for the service of the state defense order. She noted that this structure should ensure the secrecy of the payments as «expenditures on national defense are closed».

Among others, the option was considered to create a special credit institution on the basis of already existing, for example, Svyaz-Bank («daughter» of Vnesheconombank).

According to experts, the translation of the financial operations and the defence industry in a specialized Bank is associated with the anti-Russian sanctions. «Defense industry under sanctions. <…> If, say, the Bank had served a defence company, would be the risk that it would impose sanctions in the form of freezing of foreign accounts. So does the Bank, which is not subject to this risk,» — said RIA Novosti former Deputy Finance Minister Oleg Vyugin.