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Further Reading

Oboronprom United Industrial Corporation

Oboronprom Corporation is one of the largest Russian diversified industrial-investment groups in the engineering and high technologies sectors. Oboronprom is an industrial investment group set up in 2002. Oboronprom has been employed by the Russian state as a vehicle for the consolidation of, initially, the helicopter design and production sectors and, following this, the electronic warfare and aviation engine sectors. As a result, acquisitions have been at the core of the group's development and growth.

The Russian Federation holds a 51% stake in Oboronprom; its other shareholders are Rosoboronexport (31.13%), the Republic of Tatarstan (15.07%) and Rostvertol (2.79%). The enterprises of the Corporation produced goods and provided services worth over $1.5 billion in 2007. Over 80 thousand people work for the Corporation's enterprises from Moscow to the Far East. Oboronprom is de-facto run by the state arms intermediary Rosoboronexport (ROE). The Board of Directors of the OBORONPROM Corporation is chaired by Sergey Chemezov, General Director of Russian Technologies State Corporation.

OBORONPROM United Industrial Corporation (OPK Oboronprom) was formed in 2002 as a closed joint-stock company on a parity basis with Rosoboronexport State Corporation and State Investment Corporation (Gosincor). After Gosincor liquidation in 2003, its share in the Corporation was transferred to the Federal Agency of Federal Property Management, and the Corporation was reorganized into an open joint-stock company. The paid-up authorized capital of the OBORONPROM Corporation is RUB 4.304 bln. Pursuant to Presedental decree the OBORONPROM Corporation was put in the list of Russian strategic enterprises. Pursuant to Executive Order of the RF President the Corporation was also included into the list of enterprises entitled to foreign trade activity related to defence products, namely supply of spare parts, maintenance and repair of military equipment previously delivered.

Pursuant to the Decree of the President of the Russian Federation of November 29, 2004 and the Government resolution of May 6, 2005, the Corporation is the parent (management and holding) company of a helicopter group, with 51% interest in the Corporation held by the Federal authorities. The Corporation holds a more then 75% stake in Oboronitelnye Sistemy (Defence Systems), the parent company and the core entity of International Financial Industrial Group Defence Systems. The Corporation also holds a 56% interest in Oboronpromlizing (Oboronpromleasing).

Russian Helicopters, Oboronprom's helicopter manufacturing group, is the leading Russian designer and manufacturer of rotary-wing aircraft equipment. Oboronprom is creating an engine building holding that will be the leading Russian industrial group producing engines for aircraft and gas compression stations. Oboronitelnye Sistemy, a subsidiary of the Corporation, is the sole Russian producer of the unique Pechora-2M air defence missile system.

Several of Russia's largest engine manufacturers became part of the Oboronprom united industrial corporation, according to a decree signed by Russian president Vladimir Putin in April 2008. The Russian Federation will contribute to Oboronprom's state capital stakes in ten companies. It received 37% of the Saturn research-industrial company, 14.25% of Perm Motors, 45.03% of Aviadvigatel firm, 60% Star plant, and 14.95% of Inkar company - all of which are based in Perm. It also received stakes in several Samara based companies; 38% of Motorostroitel, 60% of the Kuznetsov Research and Technical Complex, 50% of the Samara Design Bureau of Machine-Building, 25.66% of Metallist-Samara and 38% of the Volga Aviation Technological Institute.

The Ufa-based Motor research-industrial center was transformed into a joint-stock company, and 100% of the company subsequently was transferred to Oboronprom. Also under the decree, the Engine-Building Corporation Management Company (UK ODK), a 100%-owned subsidiary of Oboronprom, was set up and held a stake of 50% plus one share in the Motor research-industrial center. UK ODK will focus on organizing serial production, modernization and maintenance of modern aviation and rocket engines, developing gas turbine engine production, attracting intellectual, industrial and financial resources for the introduction of new technologies and international standards. A total of 49% of the Kamov aircraft-building company and 3.9% of Rostvertol will also be merged into Oboronprom's stock capital.