Not clear how it fits in proposed Russian restructuring (325 words)

Published: 1/25/2001

Ilya Klebanov, the Deputy Prime Minister, is reported as having recently endorsed a draft Russian-Belarussian agreement, establishing what is described in reports as, an “Aerospace Equipment Joint Financial and Industrial Group”. The new group will comprise an amalgamation of assets belonging to both Russian and Belarussian aerospace enterprises - Russian joint stock companies. The constituent elements, based in St Petersburg are: · Unified Aircraft Instrument Making Consortium · St. Petersburg Precision Electromechanical Tool Plant · Tavrichesky Bank · Aircraft Instrument Making Economy R&D Centre Elements based elsewhere are: · Voskod machine-building plant [Pavlovsk - Nizhny Novgorod] · Elektropribor JSO [Voronezh - south of Moscow] · Impulse test and design bureau [Arzamas - Nizhny Novgorod] · Automatics Central Design Bureau [Omsk] In addition, Belarus will contribute the state-owned Borisov Instrument-making Plant [Minsk], and the Ivantsevichi Instrument-making plant [Brest]. As yet, it is unclear exactly how the new grouping might operate, but it is assumed that the Russian state is likely to be the largest shareholder, if a single joint stock entity is created. Currently, the Ministry of Science and Industry plans to merge a number of the industry's assets into larger groupings. It looks as though this group could be the basis of one of the two groups reported to make up the new structure; one being avionics and the other control/hydraulic systems, although though the constituent companies mentioned so far defy a clean split into the two categories. The control/hydraulic systems grouping is already reported to be in the process of being established under the title of Aerokosmicheskoye (Aviation and Space Equipment); comprising of 32 enterprises. The headquarters are in St Petersburg and a Mr. Bodrov will head it up. The Ministry is however, reluctant to discuss any details in connection with the plan before Deputy Minister Dondukov's presentation to the government, set for 1st March 2000.

Article ID: 2323