The Russian Ministry of Defense has filed a lawsuit against the V.V. Bakhirev Research Institute of Mechanical Engineering (NIMI) for over 29 million rubles ($301,000), citing dissatisfaction with the company’s ammunition and embezzlement of millions of dollars on several defence-related projects.
Sources in the Moscow Arbitration Court confirmed the case and first reported by TASS.
According to insiders familiar with the case, part of the claims stem from the Ministry’s concerns over the quality of modernization work conducted by NIMI, which specializes in developing artillery systems and ammunition for the Russian military.
NIMI, established in 1932, has played a pivotal role in the development and production of ammunition for various branches of the Russian armed forces, including field, tank, and naval artillery. Over its 80-year history, the institute has introduced more than 1,000 ammunition designs into service with the Russian Army and Navy.
The institute’s catalog lists a variety of ammunition products, including tank ammunition, field artillery ammunition and naval artillery ammunition.
Despite its long-standing contributions to Russia’s defense industry, the institute is now facing accusations from the Ministry of Defense, alleging that certain projects have not met expectations.
NIMI’s capabilities extend beyond ammunition production. The institute also offers technical assistance for manufacturing and maintaining rounds, supports joint development of ammunition according to client specifications, and is involved in repair and licensing services.
In March 2014, Rosoboronexport JSC and its subsidiary NIMI entered into a contract with the Indian Ministry of Defence to arrange the licensed production of Mango 125-mm rounds with armour-piercing composite shots for the D-81 tank gun developed at the facilities of the Mechanical Engineering Research Institute (NIMI) named after V.V. Bahirev (an affiliate of the Tecmash concern). Indian companies are now licensed to produce and assemble ammunition in India. NIMI was embroiled in a corruption scandal in India following the contract and offering bribes to local suppliers for providing low-quality materials.
Since the beginning of last year, the NIMI specialists have started installing and commissioning the supplied equipment and facilitating the production start-up at the Indian Ministry of Defence’s artillery plants. The production start-up programme also included local Mango rounds’ production training, an integrated audit of production facilities’ readiness and equipment status, and employee certification.
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