Translated material
Asset Collector
The military-industrial company will maintain the state register of the country's defense enterprises
At the International Aviation and Space Salon MAKS-2007, which ended yesterday in Zhukovsky near Moscow, a new powerful structure of the Russian military-industrial complex - ZAO Military-Industrial Company - loudly announced itself. The organizing committee of the salon awarded her a diploma for the best exhibition design. In addition, at the exhibition a cooperation agreement was signed between the Federal Agency for Industry and the military-industrial complex. The document was endorsed by Deputy Head of Rosprom Stanislav Puginsky and General Director of the Military Industrial Company Andrey Kapustin.“The meaning of the agreement is simple,” said Stanislav Puginsky, answering a question from Vremya Novostey, “it is dedicated to cooperation in the field of forecasting the needs for the development of weapons and military equipment and general-purpose products, and also defines the principles of broad interaction in the scientific and technical sphere , trading area and information exchange area. We look forward to long-term collaboration with the military-industrial complex group of companies, since this is a dynamically growing investment structure. The agreement just signed is an example of the implementation of the public-private partnership mechanism.”
The military-industrial complex unites a number of developers and manufacturers of weapons and military equipment (WME), as well as infrastructure enterprises that ensure the functioning of the defense industry. This refers to banking, information support, media and telecommunications services, real estate management, even business and individual tourism.
According to Mr. Puginsky, Rosprom is extremely interested in all areas of the military-industrial complex's activities. Firstly, investment opportunities for the acquisition on the market and consolidation of defense enterprises of the third and fourth levels of cooperation, which were practically lost during the privatization process. Today their remains are scattered and scattered. The intellectual potential of such enterprises and their scientific achievements are also lost. The military-industrial complex has become for Rosprom a tool for implementing the task of consolidating the defense industry set by the president and the government. Enterprises that have a state stake are united through presidential decrees and government regulations. Where assets are private, financial instruments are used on the securities market. Here Rosprom is counting on the help of the Military Industrial Company. By purchasing enterprises from private owners, the military-industrial complex often prevents their forced conversion or bankruptcy. Ultimately, this should lead to a significant reduction in the dependence of our defense industry on foreign manufacturers of element base. In fact, the industry is being restored - production chains are being “molded” from pieces of scattered semi-bankrupt enterprises aimed at the final product for military purposes. Specialists, ideas and investments began to return to the defense industry.
After the signing of the framework agreement, practical work on specific projects will begin. Mr. Puginsky did not identify them. Having made, however, one exception: Rosprom entrusted the military-industrial complex group with maintaining the state register of defense enterprises in Russia. Taking into account the extensive experience in developing software for anti-aircraft missile systems, Design Bureau-1, which is part of JSC VPK, was chosen as the base for maintaining the register of defense industry enterprises even before the signing of the agreement. This is an important tool that allows you to take into account the composition of defense enterprises, including private ones, and analyze their current status based on reporting. Over time, this will become a tool not only for monitoring the defense industry, but also for regulating its activities. Perhaps, for the first time, a program for ensuring such work has been prepared at a professional level. The military-industrial complex today analyzes the state of the defense industry and its development trends, introduces modern management technologies, consolidates financial information, making it transparent for investors and partners.
As Andrei Kapustin, general director of the Military-Industrial Company, told Vremya Novostey, the group began to form in the mid-90s, during the most difficult years for the Russian defense-industrial complex. In December last year, the military-industrial complex reached a new level: the group's management company, CJSC Military-Industrial Company, was created. Today the holding has about two dozen enterprises, employing 15 thousand people.
Over the past six months, eight controlling stakes in defense enterprises have been purchased. An example of a major (both in value and in amount) military-industrial complex transaction is the purchase a week ago of a controlling stake in the Arzamas Instrument-Making Plant. This private enterprise is a monopolist in the manufacture of gyroscopes and autopilots for aviation, tactical and airborne missiles, and supplies all products to the United Aircraft Corporation.
At the end of last year, the VPK group of companies entered the top twenty largest Russian defense holdings in terms of “revenue from product sales” (RUB 3.3 billion). The total book value of the group is 10.6 billion rubles.
A new serious player has appeared on the market for military products. And Rosprom could not help but pay attention to him. The group has very ambitious plans for 2007. First, double the total profit of your enterprises. Secondly, prepare the group’s entry into the external borrowing market.