At a meeting with Prime Minister Dmitry Medvedev, Putin agreed to dissolve the Federal Service for Defense Contracts, Rosoboronzakaz, as well as the Federal Agency on Delivery of Arms, known as Rosoboronpostavki, Russian news agencies reported.
Putin also approved the abolishment of the Regional Development Ministry and its functions are to be spread across several ministries.
For his part, Russia's prime minister said domestic aircraft production must increase following sanctions over the Ukraine crisis and one of his deputies said Moscow planned joint production of a long-haul aircraft with China. RIA quoted Prime Minister Medvedev as saying Russia "must of course continue on the course of increasing the number of aircraft that are produced in Russia and aircraft parts." It also quoted Deputy Prime Minister Dmitry Rogozin as saying Russia and China planned to sign an agreement in October on joint-production of the long-haul aircraft, adding that Russia planned to double production of the Sukhoi Superjet from 2015.
Meanwhile, the RIA Novosti news agency cited Industry and Trade Minister Denis Manturov as saying that Russia could build its own warships similar to France's Mistral helicopter carriers.
French President Francois Hollande's office said on Wednesday that Paris would not deliver the first of the two Mistral helicopter carriers for now because of Moscow's actions in eastern Ukraine.