Military industry will become one of most important segments of Armenia’s economy: minister spoke about new bills

Today, a number of legislative packages are being developed in Armenia that will help create a more favorable environment for the development of high-tech and military industries. Armenian Minister of High-Tech Industry Mkhitar Hayrapetyan spoke about this during the Second Armenian Global Summit.

According to him, many of today's legislative norms have been in effect since the Soviet era, and in some sense they hinder the development of the above-mentioned sectors. Therefore, according to the minister, if Armenia wants to have something to offer the world, it is necessary, first of all, to understand what problems today hinder the rapid development of the technology sector, and to solve them.

One of the most important legislative packages capable of significantly changing the situation in the military industry, Ayrapetyan believes, is the draft law on the military-industrial complex, which has already received government approval. According to the minister, this draft law, among other things, regulates relations between three parties — the Ministry of High-Tech Industry, the Ministry of Defense and the industrial sector. The draft law also reduces bureaucratic obstacles that today create serious problems for companies working in the military industry. The draft law also envisages the creation of new procedures for financing R&D — research and development.

“This project will make life much easier for those involved in the military industry, and for us it will create an opportunity not only to finance fundamental research, but also to competently finance the development of prototypes, which after state testing can then go into serial production,” the minister noted.

Ayrapetyan also added that the new bill also makes it possible to redistribute the budget for the creation of prototypes, which is problematic under current laws.

The profit threshold for military-industrial companies is also being removed, which will also help attract investment, create new venture funds and targeted financing for companies working in the field of technological innovation. This threshold, according to the minister, has been an obstacle to the development of this sector for many years.

"The military industry will become one of the most important segments of our economy," noted Mkhitar Hayrapetyan. "All this will provide not only technological advantages for our military forces, but also the opportunity to have another developed sector in the economy - the military industry, which will raise Armenia's international image."

According to him, if it is possible to carry out the entire cycle of development and production of high-tech products, including military-industrial products, in Armenia, the country will become a completely different player in the technological world and in geopolitical legal relations.