In probably his last speech as Prime Minister, Stephashin yet again claims that government will sort out the Russian industry's problems

Published: 8/9/1999

In probably the last speech of his short term in office, Russian Prime Minister Sergey Stephashin promised better terms for the domestic aircraft industry while attending a major aerospace conference at Aviastar in Ulyanovsk on 7th August (www.concise.org 26/7/99). He stated in a press briefing at the conference "we cannot leave our aircraft-builders in the lurch” it is necessary to help the aviation companies and that the government had the various mechanisms at its disposal to achieve this. According to Stephashin, a government resolution will be signed soon giving equal 'conditions' to both Russian and non Russian producers of aircraft through unspecified use of the state's customs policy. He also reaffirmed comments from other government figures that the aircraft producers could not hope to succeed without government support and he stressed that Russian aircraft builders "must be supported through leasing and through government guarantees". The conference discussed a number of issues relating to the industry, particularly the issue of financing, but also the need to rationalise the major enterprises in the sector to respect the rules of "production cooperation" according to Stephasin. While not privy to the detail of the Ulyanovsk conference at this point, we would make to observation that the fate of Stephashin on Monday morning 9th August, when he became yet another ex Russian Prime Minister among 3 other in the last 18 months. Perhaps illustrates the confusion that currently marks both the formulation and execution of Russian policy in the aerospace sector. The industry's high status in the Russian industrial scene continues to give them considerable profile and get them a truckload of undertakings, but no one currently stays around long enough to make the changes. Unfortunately the polemical claims of levelling playing fields and of imminent support are inclined to fall by the wayside as the new incumbent wrestles with Russia's many pressing problems.

Article ID: 740