Russia's defence industry has failed to fulfil major arms contracts, President Dmitry Medvedev said on Tuesday, warning top government and industry officials they would be held responsible, according to Reuters. "The work is going very poorly and slowly," Medvedev told officials during a televised meeting. "It is unacceptable when decisions are taken -- and at the highest level -- money is allocated but the product is not delivered." In an ironic allusion to Stalin-era forced labour camps, Medvedev said: "In past times, half of the people here would-be doing physical exercise in the fresh air." A day earlier, Russia marked the anniversary of the end of World War Two in Europe with its annual display of military might and parade through Moscow's Red Square. Medvedev pledged to arm Russia's forces with the latest weapons and push reform of a military plagued by low morale and poor equipment. Despite its status as the world's second-largest arms exporter, military analysts say Russia's defence industry has stagnated since the collapse of the Soviet Union, relying on outdated designs. The industry's shortfalls and the need for an overhaul of the army's own ageing hardware were exposed during Russia's five-day war with Georgia in 2008 and by the economic crisis of 2009.
