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Concern PVO "Almaz-Antey" /
Concern Aerospace Defense [PVO]

Concern VKO Almaz-Antey on the basis of production activity in 2017 for the first time entered the top ten of the world's largest manufacturers of military products, taking eighth place in the Top-100 ranking of the American specialized weekly Defense News in August 2018. Also, this included five more companies from Russia. The top three of the rating included American Lockheed Martin ($ 47.9 billion), Raytheon Company ($ 23.5 billion) and British BAE Systems ($ 22.3 billion), which remained the leader among the world enterprises of the military-industrial complex. As the newspaper notes, Almaz-Antey, engaged in the development and production of antiaircraft and anti-missile defense, has risen in the ranking by three positions at once: from 11th to eighth place. According to the weekly, the company's revenues in 2017 amounted to $ 9.1 billion, an increase of 39% compared to 2016.

JSC "Concern PVO" Almaz-Antey "- the Russian group of companies develops and manufactures tools and missile defense (air defense and missile defense). The Board of Directors was headed by Sergei Chemezov Group (Director General of the State Corporation "Rostec"), Chairman of the Board - Jan Novikov, Chief Designer - Paul Sozinov. 100% of the shares are owned Federal Property Management Agency. The headquarters of the group is located in Moscow.

Concern was the first major holding company established in the framework of the federal target program "Reforming and development of military-industrial complex (2002-2006)". In total the group includeed more than 50 companies of the defense industry. Also, "Almaz-Antey" exercised the powers of the managing organization for the 9 subsidiaries.

The company now known as Almaz-Antey originated in the merger of two prestigious defense manufacturers: Almaz, which produced long range air defense systems, and Antey, which dealt with short range and troop air defense.

The Group produces anti-aircraft missile systems (AAMS) and systems (ADMS) onshore and offshore. Among the advanced products "Almaz-Antey" - large SAM (S-300MPU2 "Favorite", S-300VM "Antey-2500" and "Reef-M"); medium ( "Buk-M1-2", "Buk-M2E", "Pechora-2A", "Calm 1") and short range ( "Osa-AKM", "Tor-M1", "Tor-M2E" "Blade," "flexible"). Concern is also engaged in the development and production of radars, automated control systems of air defense, as well as a wide range of civilian products.

After a complex and controversial combining of the two entities, “Joint-Stock Company Almaz-Antey Aerospace Defense Concern” (OAO Kontsern PVO Almaz-Antey) was established by President Vladimir Putin in 2002 uniting no fewer than 46 enterprises, including factories, research and production organizations, design bureau, and research and development institutes involved in the development and manufacture of short-, medium-, and long- range air defense missile systems, radar surveillance systems, and automated control systems. This was part of a broader push to unite splintered pieces of the sprawling military-industrial complex, and other industries ravaged by underinvestment and lack of direction during the chaotic 1990s.

In 2007 there was an integration of the concern, and by 2015 it included more than 60 companies from 17 regions of the country. In 2007, the company was enlarged and included around 50 enterprises in 17 Russian regions, employing over 94,000 people. The Russian state is the sole shareholder.

Along with other “national champions” created by the Kremlin with the purpose of monopolizing the domestic market and attaining a competitive edge over global rivals, Almaz-Antey has performed extremely well. The group produces the whole range of Russian top-line anti-aircraft and anti-missile systems, including S-300PMU2 Favorit, S-300VM Antey 2500, S-400 Triumf, S-300 Rif-M (ship-based), 9K37 Buk, and 9K330 Tor. Approximately 90 percent of its revenues come from the defense sector, with half of the total made up by exports. In 2012, the company managed to increase its defense revenues by an impressive 62 percent to $5.7 billion, which placed it among the top 15 arms manufacturers worldwide.

In late 2001 Victor Ivanov, deputy head of the president of the Russian Federation administration, was elected the Chairman of the research-and-production association (RPA) "Almaz" board of directors. Earlier, V.Ivanov was also elected the chairman of the concern "Antey" board of directors. The concern "Antey" and RPA "Almaz" are the largest Russian developers and manufacturers of antiaircraft defense systems. It was supposed that the concern "Antey" and "Almaz" would be a part of the newly created "Concern PVO (air defense)". Vice-premier Ilya Klebanov insisted on the prompt formation of the concern, but the developers and manufacturers - scientific and industrial enterprise "Almaz" and the concern " Antey " resisted these plans.

On 24 April 2002 Russian President Vladimir Putin signed an edict "On the Almaz-Antey air-defence concern" that provided for the integration of 40 enterprises engaged in the development and manufacturing of air-defence and anti-missile systems for all armed services. It got its name from the parent companies that are included in its composition: Research and Production Association (NPO) "Diamond" them. Academician AA Raspletin and NGOs "Antaeus."

The integration is based on the industrial company Antey. A number of Belarusian companies affiliated with the international [Belarusian-Russian] financial and production group, Defence Systems, could become de-facto participants in the new corporation, which was being set up in Russia. Under the edict, all major Russian factories under Defence Systems are being handed over to the new concern. The creation of the new concern was a long-awaited event. The new concern will substantially expand the list of air-defence hardware manufactured in Russia with Belarus's participation and may increase exports of this equipment.

Concern Almaz-Antey was established according to Putin's decree in April of 2003. It was a joint-stock company with the perspective of the foreign economic activity. Concern PVO "Almaz-Antey" merged 46 enterprises: factories, NGOs, bureaus and research institutes involved in the development and production of anti-aircraft missile systems, the main types of radar surveillance and control systems. Concern produced systems such as the S-300, S-400 "Favorite", Tor-M2E etc.

The assassination of acting general director of the military concern Almaz-Antey Igor Klimov was one of the most notorious crimes of 2003. Igor Klimov was shot dead on June 6th, 2003, when he was leaving his house in Moscow. The assassin was shooting from a gun with a silencer. Directors of two other enterprises incorporated in the air defense concern have been killed before. In February of 2002 director of the commercial firm Rusma, Ruben Narimanov, was shot in St.Petersburg. Mikhail Ivanov, the general director of another factory, was killed in July of the same year.

Igor Klimov used to work in foreign intelligence and in the presidential administration. After that, he headed the air defense concern Almaz-Antey. On June 6th, 2003 Klimov went out of his house situated not far from the building of the Russian Interior Affairs Ministry. Two unknown men wearing camouflage uniform ran up to him. One of the criminals took a gun with a silencer out of the plastic bag and shot Klimov in the chest. Igor Klimov remained standing and attempted to defend himself. He managed to take the gun away from the assassin. The other criminal was trying to snatch away Klimov's case. Igor Klimov's wife ran out of the house during the fight and the criminals escaped. Klimov died over the wound.

The director of another company of the air defense concern, Ratep, was killed in the Moscow region the same day. First deputy director of the St.Petersburg-based enterprise State Obukhovsky Factory, which was also a member of the Almaz-Antey concern, was found hanged on January 12th.

Sometime later, one of the proposed solutions involved integrating Almaz-Antey into Rostec, a bloated conglomerate of more than 600 entities overseen by Sergey Chemezov, which includes radar manufacturer Vega and JSC Sozvezdiye, responsible for developing and producing electronic warfare and radio commu- nications technology. The second proposal envisaged selling Almaz-Antey to the RTI group, which specialized in producing early warning radars (Voronezh for instance), space communications technology and control systems for anti-aircraft weaponry.

In the end, Putin was content with neither solution. First, Rostec was considered cumbersome and ungovernable even by Russian standards; and, second, Almaz-Antey was regarded as too strategically important to pass to private hands, as RTI is majority-owned by AFK Sistema, a holding controlled by magnate Vladimir Yevtushenkov. A compromise was therefore found under which Almaz-Antey was to become the core of the VKO indus- try. It should absorb several independent subcontractors (mainly satellite manufacturer Kometa) and appoint Sergei Chemezov head of its supervisory board in order to ensure harmonized relations with Rostec.

In July and November 2014 sanctions were imposed against the "Almaz-Antey" and some of its subsidiaries by the US, the European Union, Canada, Switzerland and Australia. They implied the blocking of assets, a ban on foreign economic relations.

At the end of 2014, "Almaz-Antey" has concluded 121 contract under the state defense order. Revenues on the basis of the group in 2014 - 73 billion 926 million rubles. Net profit - 728 million rubles. The average salary in the Group companies at the end of 2014 - 42 384 thousand rubles. In July 2015, "Almaz-Antey" took 11th place in the ranking of the world's largest manufacturers of military products, compiled by the US edition of Defense News.

In September 2014, it became known that the company Aerospace Defense (ASD) was being created on the basis of Concern PVO "Almaz-Antey". According to ITAR-TASS source at one of the Concern PVO, in his address to the staff of General Director of "Almaz-Antey" Jan Novikov said that "despite the economic sanctions by Western countries, the Company is able to fulfill its task of creating the technical basics of aerospace defense of the country."

Russian President Vladimir Putin signed a decree 05 February 2015 to transform Concern "Almaz-Antey" into Concern Aerospace Defense [PVO]. The corresponding document was published on the official web portal of legal information. "The proposals of the Russian government to rename the JSC" Concern PVO Almaz-Antey "(Moscow), 100% of the shares of which are federal property, Joint Stock Company" Concern aerospace defense "Almaz-Antey".

At the same time there was approved the increase of authorized capital of "Almaz-Antey", in connection with which the Russian Federation is making it a number of assets, in particular - 100% minus one share of JSC "Corporation of space systems, special purpose" Comet ", 100% minus one share of JSC" CSI Radio Engineering Institute. Academician Berg ", 74.5%" Plant "Navigator" (St. Petersburg) and some other assets.

"Creating Group VKO - absolutely logical and natural step associated with the need to ensure the full development cycle and production technology aerospace defense," - said a member of the Public Council under the Ministry of Defense of the Russian Federation, the chief editor of "National Defense" Igor Korotchenko. According to him, now aerospace dramatically updated threat to Russia, especially against the US implementation of the concept of Prompt Global Strike. According to Korochenko, concern EKR accumulates all potential developers and creators of the art air and missile defense and, of course, will enhance the national security of the Russian Federation.

February 5, 2015, Russian President Vladimir Putin signed a decree to rename the Concern PVO "Almaz-Antey" Concern in the aerospace defense "Almaz-Antey".

Supervisor Concern Aerospace Defense "Almaz-Antey" Academician Anatoly Savin died at the age of 95 years. "March 27, 2016 at 22:00 MSK on the 96 th year of life died scientific director of JSC" Concern EKR "Almaz-Antey" Academician Anatoly Savin, "- said in a statement received by Tass on . The following week, on April 6 Anatoly Savin would have turned 96 years old.

The general director of "Almaz-Antey" Yang Novikov on behalf of the 125,000 member collective group and its member companies expressed deep condolences to the families and friends of Savina.

The Academician participated in the development of anti-space defense systems, space-tier early warning system of missile launches, as well as the marine space reconnaissance and target designation system. Savin is the author of over 500 scientific works and inventions. With his direct participation created technological equipment to produce weapons-grade uranium and plutonium, creating a jet guided weapons, global space-based information and management information systems.

In 2004, Savin was appointed General Designer of "Almaz-Antey", led the effort to create a system of aerospace defense of the country. Since 2008 he held the position of academician of the supervisor of the group. Savin was awarded the title Hero of Socialist Labor (1976). He was awarded the Lenin Prize (1972), as well as three of Stalin and three USSR State Prize, Russia and Georgia. He was awarded four Orders of Lenin, as well as many other state awards.

Concern "Almaz-Antey" has won first place in the national ranking of transparency among public procurement corporate customers in the category of "high transparency". rating 2016 results published on the project website 23 December 2016. "The position of the group in the national ranking of transparency in procurement is the result of the efforts of specialists on procurement They were able to build a procurement management system and increase its efficiency in the Group-wide, which includes dozens of large enterprises.", - Said deputy general director of the Group of Legal and Corporate Vladimir policy Konovalov, whose words are quoted by "Almaz-Antey" the press-service.

According to Konovalov, "Almaz-Antey" also has all the chances to get an estimate of "Guaranteed Transparency" following the results of 2017. The "National Procurement Transparency Rating" is an independent non-governmental research center specializing in the field of economic and legal analysis of the Russian market of public and corporate procurement.

Concern "Almaz-Antey" has completed a reduction of 30%, were also reduced a number of structures. This is stated in the Group's report of 18 January 2017. The press service explained that the loans for investment in projects and the cost of new production have led to the need to seek additional funding, including by reducing non-productive expenditure.

"The release of about 30% of the authorized strength of the management company of Concern within the optimization of the structure -. One of the steps in this direction during its implementation was carried out reduction of a number of structural units of the Group," - said the press service of "Almaz-Antey", noting that Board of Directors of JSC "Concern EKR" Almaz-Antey "approved a new organizational structure.

A number of the Group departments merged and transformed into specialized departments, cut some services and departments. According to company CEO Ian Novikov, "the change of organizational structure and optimization of staffing levels carried out in concern to improve the effectiveness of the parent company in the whole control system, as well as provide solutions to problems specific instructions and directives of the President and the Government of the Russian Federation."

Concern constructed two new factories in Nizhny Novgorod and Kirov, completed the creation of the North-Western Regional Centre in St. Petersburg. The volume of investment for these three projects amounted to about 110 billion rubles, of which 94 billion rubles up their own funds.

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Page last modified: 22-07-2019 18:27:19 ZULU