Russian Government Determined to Deal with Defense Industry

The privatization of 12 defense enterprises will be announced until the end of the year

Boris Alyoshin, deputy chairman of the Russian government, is visiting the Nizhny Novgorod region on August 4th. The official will get acquainted with the work of defense enterprises.

Boris Alyoshin is in charge of the problems of the Russian defense industry. The vice prime minister is going to visit the Nizhny Novgorod machine-building factory, aircraft-building enterprise Sokol, the Gorky car factory and several other enterprises. The vice prime minister will also take part in the ceremony to open the Business Development Center of the Nizhni Novgorod region.

The visit will be conducted within the scope of the implementation of the state program to reform the administrative system and the Russian defense industry. One of the goals of the  program is to overcome administrative obstacles that prevent from the development of the national defense industry. One of those obstacles is the formal subordination of the industry's enterprises to certain agencies of the field. At the government, they perceive agencies as an artificial construction that prevents from the development of the Russian defense industry on the whole. 

The orientation to establish holding companies of the defense industry can not be realized, until those agencies exist. It has been recently announced, preliminary works to form the new State Rocket and Space Corporation have been completed in the Krasnoyarsk region. The new corporation will be the example of Russia's first inter-agency association of enterprises. The integrated organization will be formed on the base of the scientific and industrial applied mechanics association (the town of Zheleznogorsk, the Krasnoyarsk region). The project has been approved by a special committee, chaired by Ilya Klebanov, the Minister for Industry and Science. The following factories have expressed their wish to become members of the corporation: Polyus (Tomsk), Kvant (Moscow), Geofizika-Kosmos (Moscow), Kvant (Rostov-on-Don). At present moment, all these enterprise are subordinated to various agencies.

An opportunity to establish a new holding on the base of the experience in the Krasnoyarsk region is to be discussed in Nizhni Novgorod, during Boris Alyoshin's visit to the enterprise Polyot. It goes about another state corporation that would deal with the development and production of various systems and communication means. Several enterprises that were previously controlled by the Russian Agency for Control Systems have already expressed their interest in becoming a part of the new corporation. Research Institute Rubin (St.Petersburg), and Popov's Omsk Radio Factory are one of those enterprises.

This is an example of the targeted work of the Federal program about the reform and the development of the Russian defense industry in 2002-2006. The government is seriously intended to deal with industry's problems. In addition to it, the privatization of 12 defense enterprises will be announced until the end of the current year.

Fyodor Virtsev

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Author`s name Olga Savka