After the RPG-7 rocket launcher and the PG-7V round were fielded in 1961, the Bazalt State Research and Production Enterprise continued improving them. As a result, in 1969 the PG-7V round was replaced with the upgraded PG-7VM, designed by V. I. Medvedev.
A more advanced shaped-charge warhead taken from the PG-9 round, fired by the SPG-9 recoilless gun, improved expelling charge and rocket motor, as well as a reduced weight: of the round have resulted in a significant increase in a number of its characteristics. For instance, despite a reduction in the calibre from 85 to 70 mm. its armour penetration increased from 260 to 300 mm. Improved expelling charge and rocket motor have significantly reduced the side wind-caused cross-trail (1.5-fold). The accuracy of fire has also been improved by 20-25%. At the same time it is worth mentioning that simultaneously with improving basic specifications, designers decreased the weight of the round from 2.2 to 2.0 kg.
The optical sight saw certain upgrades as well. Sight angles were adjusted. The upgraded sight was designated PGO-7V, while the rocket launcher, equipped with the new sight, was designated RPG-7V.