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Oboronservis OOO

25 ul.Surikova
Ekaterinburg RUSSIAN FEDERATION 62014 

The system of the Ministry of Defense Russia composed of organizations that carry out the production of goods, works and services for the defense of the Russian Federation, as well as to meet the needs of the national economy. Of these, the largest number of enterprises are of legal forms - Federal State Unitary Enterprise. Part of the federal state unitary enterprises already corporatized and established their base open joint-stock companies, 100% of the shares of which are in federal property.

An analysis of the possible ways of reforming, a Defense Ministry of Russia concluded that the main line of improving the management of federal property privatization is a unitary enterprises administered by the Ministry of Defense of Russia, by converting these enterprises into open joint-stock companies and the consolidation of their assets in a single integrated structure in order to concentrate resources and optimize their use for the preservation and development of science and the productive capacity of military-industrial complex of the Russian Federation.

On 16 September 2008 Dmitry Medvedev signed a decree establishing an open joint stock company, Oboronservis, uniting a number of companies currently under the jurisdiction of the Ministry of Defence. Oboronservis will merge nine companies working in fields such as aircraft and weapons maintenance, construction, trade, hotel services, agriculture and publishing. The decree is designed to optimise the structure of these organisations which are not dominant in their respective sectors of activity, but nevertheless in need of investments and modernisation. After being registered by the state Oboronservis will become one of the Russian Federation's strategic enterprises and strategic joint stock companies.

According to the Russian authorities, the new holding company created in order to optimize the structure under the Ministry of Defense organizations and enterprises, and improving the efficiency of their operations and management. «Oboronservis» merge nine subsidiaries of joint-stock companies - OAO «Aviaremont», «Spetsremont», «Remvooruzhenie», «Oboronstroy», «Agroprom», «Oboronenergo», «Voentorg», «Slavyanka», «Red Star», specializing in repair aircraft and weapons, construction, trade, hotel services, agriculture and publishing. Overall, the new structure will comprise 316 companies and organizations, including the Chelyabinsk plant Aircraft number 712. Yuzhnouralsk plant will be included in OAO «Aviaremont».

Oboronservis will consolidate all business enterprises of the RF Defense Ministry. This move of the president is in line with the policy of Defense Minister Anatoly Serdyukov that endeavors to get rid of all non-core assets. By yesterday's decree, President Dmitry Medvedev ordered to set up Oboronservis that will unite enterprises of the RF Defense Ministry "which business activities may be additionally executed in the interests of wider circle of customers."

1. Open Joint Stock Company «Agroprom» - the production and supply of agricultural products and foodstuffs in the interests of the Armed Forces of the Russian Federation, government and other customers, including foreign ones;
2. Open Joint Stock Company «Aviaremont» - warranty and service maintenance, modernization, renovation and utilization of aviation technology in the interests of the Armed Forces of the Russian Federation, government and other customers, including foreign, as well as the introduction of new technologies and developments in this field;
3. open joint stock company Krasnaya Zvezda [«Red Star»] - the production of printed products and activities in the fields of culture, film and media in the interests of the Armed Forces of the Russian Federation, government and other customers;
4. Open Joint Stock Company «Oboronenergo» - operation, maintenance, repair and modernization of energy facilities in the interests of the Armed Forces of the Russian Federation, government and other customers;
5. Open Joint Stock Company «Oboronstroy» - construction and operation of facilities for the benefit of the Armed Forces of the Russian Federation, government and other customers, including foreign, as well as the introduction of new technologies and developments in this field;
6. Open Joint Stock Company «Remvooruzhenie» - warranty and service maintenance, modernization, maintenance and disposal of arms and military equipment in the interest of the Armed Forces of the Russian Federation, government and other customers, including foreign, as well as the introduction of new technologies and developments in this field;
7. Open Joint Stock Company «Slavyanka» - the provision of hotel services for the Armed Forces of the Russian Federation, government and other customers, including foreign ones.
8. Open Joint Stock Company «Spetsremont» - warranty and service maintenance, modernization, renovation and utilization of technology in the interests of the Armed Forces of the Russian Federation, government and other customers, including foreign, as well as the introduction of new technologies and developments in this field;
9. Open Joint Stock Company «Voentorg» - trade and personal services and catering to the interests of the Armed Forces of the Russian Federation, government and other customers;

The new holding company Defense - OAO «Oboronservis» will include several of the Urals. As the correspondent of «new region», with reference to the text of a presidential decree, all enterprises are distributed on nine joint-stock companies, forming OAO «Oboronservis». Thus, OJSC «Aviaremont» include: «1,015th plant to repair military-technical property Defense» and «Aramilsky Aircraft Repair Plant». This company will specialize in warranty repair and maintenance of aircraft. In the JSC «Spetsremont», specialization which will also guarantee and service maintenance, repair and disposal of military equipment, will «144th armored Plant Defense Ministry», located in Yekaterinburg. In another structure - OAO «Oboronstroy», which will specialize in the construction and operation of departmental facilities, will Volga-Ural construction management of the Ministry of Defense - a subsidiary of Russian «General Directorate of Special Construction Ministry of Defense of Russia».

In addition, supplies are now part of PUrVO food farms «Sosnovskoe» included in the JSC «Agroprom» - core competence which will manufacture and supply of agricultural products for the needs of the Armed Forces of the Russian Federation. In the JSC «Voentorg», which will trade and domestic services, including FKP «Trade Office Urals Military District» and Ekatherinburg company «Rokada», and PEs «Churches and« Ural military conduct »will now be in the structure of OAO« Red Star », which zamknet by the production of departmental print and film.

Creation of Oboronservis matches the policy of Defense Minister Anatoly Serdyukov, whose target is the ministry's restructuring and disposal of non-core assets. In March of 2008, the minister ordered to elaborate proposals for making civilians nearly 200,000 medical doctors, journalists, lawyers and base area servicemen. After issue of the presidential decree on the establishment of Oboronservis, the circle of duties of the director of the Accommodation and Settlement Service (AASS) - the deputy defense minister is narrowed because a construction holding will be established on the basis of construction organizations of the Defense Ministry. Construction is one of the most corrupt sectors in the Defense Ministry.

The greatest interest in the list of work "Oboronservisa" represents repair sector. Only large enterprises of its kind in the Ministry of Defense several dozen. This year, the repair of military equipment and armaments in the budget was built around 120 billion rubles .- bulk of the money received special factories Defense Ministry. Directors of these enterprises controlled by only heads of the offices of the Armed Forces command structures, and therefore control spending rather difficult. According to the Director of the Center for Analysis of Strategies and Technologies Ruslan Puhova, "before the arrival of Minister Serdyukov, these plants were big black hole, the money is simply disappeared, and in principle until the situation is not radically changed."

Representatives of large companies military-industrial complex has been suggested military remzavody in their maintenance. However, after signing the decree on the establishment of a "Oboronservisa" they would remain under the effective control of Defense Minister. "The challenge is to ensure maximum transparency of these joint-stock companies that, in terms of our Defense extremely difficult", - said Vasily Zatsepin of Economics Institute's Laboratory of military transition. Mr Zatsepin expects that "when a good team management and transparency of financial flows, these non-core assets could continue to function perfectly."