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Within the Russian Republic, there are organizations and agencies at every level, from the central government to the defense enterprise itself, that are involved in Defense conversion. The following is a brief list of organizations that have been formed to facilitate business ties with Western firms in the hope of accomplishing conversion to commercial production.
Conversion organizations function as primarily focal points for Western firms interested in joint ventures with Russian defense enterprises involved in conversion to commercial product lines. These agencies usually aid in conducting feasibility studies and market analyses. Organizations are also being formed regionally in order to merge defense plants in specific areas and to assist enterprises in related production fields.
As a result, there is tremendous overlap regarding conversion among government agencies and between central and local governments and at the enterprise level which further adds to the complexity of defense conversion. The following is a preliminary inventory of agencies and organizations in Russia that are involved in defense conversion.
The attached organizational charts outline a few of the Russian Federation Ministries that are known to be involved in defense conversion. The head of each ministry, if known, is listed. These charts will be updated and expanded as more information is collected regarding the many Russian agencies involved in defense conversion.
The following is a brief list of several organizations that are involved in defense conversion:
A. Institute of USA and Canada Studies (ISCAN) of the Soviet Academy of Sciences: This agency has set up the Center for Conversion and Privation (CCP) which is headed by Dr. Gennady B. Kotchetkow and meets with Western academic and business officials to discuss the major elements and problems of approaching "industrial demilitarization."
B. Russian Union of Industrialists and Entrepreneurs (RUIE): The RUIE (formerly (known as the Scientific Industrial Union) was created by the Central Government and is an independent agency which consists of 1500 major enterprises and approximately 40 associations. The RUIE, headed by Arkadiy Volskiy, within the opposition to the Yeltsin/Gaydar reform program, seeks to become a focus for business ties between Western firms and Soviet defense firms.
C. Military Industrial Investment Company (VPIK): Also known as the Defense Industrial Investment Company (DIIC), VPIK was organized by a combination of government and industry to aid the defense industry in adjusting to the transformation to a market economy. Its major goal is to finance complete and partial conversion of defense enterprises throughout Russia and promote the development and production of dual-use technologies. Several large defense plants, including major aerospace and communications firms are among its founding members. The most prominent members are listed below.
The Military Industrial Stock Exchange
The Russian Commodity-Raw Material Exchange
The Moscow Central Stock Exchange
The Central Scientific Research Institute of Machine Building
The Plleshakov Scientific Production Association.
Khrunichev Plant
The Economic News Agency
The KAMI stock Exchange.
Military Unit 57275
The Impluse Scientific Production Association
Drzerzhinskiy Military Academy
In addition, local governments are developing programs to assist in the conversion of local enterprises. In St. Petersburg, a group of city officials, banks and company managers formed a marketing firm called Infocon in order to market information on area defense firms. Another example is Uralkonversia, an agency headed by Dr. Yevgeny V. Culkin, which assists in conversion initiatives for defense enterprises in the Urals Region.
The authorities at this level may prove to be the best group for Western firms to initiate discussions with because these leaders have the most at stake in the area of Defense conversion especially in regions where enterprises employ a majority of the population.
At the company level, managers have set up organizations in order to directly develop joint ventures. These associations have been organized in the major cities and defense industrial centers throughout the Russian Federation.
Viktor Chernomyrdin: Premier
Deputy Premier for Foreign Economy Activity; A. Shokin
First Deputy Premier: V. Shumeyko
Deputy Premier for Privatization: A. Chubays
Deputy Premier for Industry, Export Control Conversion: G. Khizha
Ministry of Defense: P. Grachev
First Deputy Minister: A. Kokoshin
State Committee for Defense Sectors of Industry: V. Kokoshin
Minister of Economics: Vacant
Deputy Minister: I. Materov
Minister of Foreign Affairs: A. Kozyrev
Conversion Administration: S. Kortunov
Minister of Foreign Economic Relations: S. Glazyev
Department of Defense Conversion: P.Yelkin
Minister: A. Kozyrev
Deputy Minister: G. Berdennikov
Export Control and Conversion Director: S.Kortunov
Deputy Director: A.Manzhosov
Conversion Department: G. Zaitsev
Deputy Director: V.S. Cipchenko
Military & Technical Cooperation and Arms Transfer Control: P. Litavtin
Deputy Director:: Chavakhih
Export Control and Non-Proliferation Department: V. Misik
Minister:: A. Kozyrev
Deputy Minister: G.Berdennikov
Export Control and Conversion Directorate: S. Kortuno
Deputy Director: A. Manzhosov
Conversion Department: G. Zaitsev
Deputy Director: V.S. Cipchenko
Military & Technical Cooperation and Arms Transfer Control: P. Litavtin
Deputy Director: S. Chavakhih
Export Control and Non-Proliferation Department: V. Misik
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