The Transformation of the Russian Defence Industry

Europe-Asia Studies

Volumn 47, Issue 8, 1995, Pages 1269-1292

  Sánchez Andrés, Antonio ^a  

^a UNIVERSITY OF VALENCIA   (Spain)

Author keywords

[No Author keywords available]

Indexed keywords

DEFENCE INDUSTRY; ECONOMIC REFORM; FUTURE PROSPECT; GOSKOMOBORONPROM; INDUSTRIAL CHANGE; MARKET TRANSITION; ORGANISATIONAL PROBLEM;

RUSSIAN FEDERATION;

EID: 0029531561     PISSN: 09668136     EISSN: 14653427     Source Type: Journal    
DOI: 10.1080/09668139508412321     Document Type: Article

References (123)

1. Moskovskie novosti, 1993, 4.
2. P. Dobryninym, ‘Privatizatsiya v VPK’, EKO, 1993, 4, pp. 3–4.
3. L. Baumgarten & V. Dudkin, ‘Razgosudarstvlenie i privatizatsiya: predpriyatii oboronnoi promyshlennosti’, Ekonomist, 1992, 11.
4. Kommersant’, 1993, 5, and Kommersant’, 1993, 31.
5. Ukaz ‘Ob osobennostyakh privatizatsii i dopolnite'lnykh merakh gosudarstvennogo reg-ulirovaniya deyatel'nosti predpriyatii oboronnykh otraslei promyshlennosti’, no. 1267, 19 August 1993.
6. Kommersant’, 1993, 34.
7. This information was displayed at the IV International Conference, ‘Mirovoi Opyt. Ekonomika Rossii’, Moscow, 6–10 December 1993.
8. Ekonomika i zhizn’, 1993, 21, and V. Glukhikh, ‘Razvitie reform i stabilizatsiya deyatel'nosti oboronnykh otraslei promyshlennosti’, Konversiya, 1994, 1, 4.
9. V. Glukhikh, ‘Nekotorye aspekty promyshlennoi politiki v oboronnykh otraslyakh promysh-lennosti’, Voprosy ekonomiki, 1993, 9, p. 103.
10. Ekonomika i zhizn’, 1993, 51, (‘vash partner’). For a more complete explanation of the first privatisation phase in the defence industry, see
11. A. Sanchez-Andres, ‘The First Stage of Privatisation of the Russian Military Industry’, Communist Economies & Economic Transformation, 7, 3, 1995, pp. 353–367.
12. Ukaz Prezidenta R.F. ‘O gosudarstvennoi programme privatizatsii gosudarstvennykh i munits-ipal'nykh predpriyatii v Rossiiskoi Federatsii’, no. 2284, 24 December 1993, especially point 5.3.
13. The information about the privatisation from 1994 has been provided by Goskomimushchestvo sources.
14. Ukaz Prezidenta R.F. ‘O poryadke privatizatsii Nauchno-Proizvodstvennogo Ob'edineniya imeni akademika S.P.Koroleva’, no. 237, 4 February 1994.
15. Rasporyazhenie PravitePstva R.F. no. 884-r, 14 June 1994.
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17. Rasporyazhenie PravitePstva R.F. no. 519-r, 21 April 1994.
18. Kommersant’, 1994, 23.
19. V. Glukhikh, ‘Oboronnaya promyshlennost’ Rossi: situatsiya i zadachi v 1994 g.’ Konversiya, 1994, 4, p. 4.
20. Nezavisimaya gazeta, 18 August 1994.
21. At the beginning of September 1993 an act was passed which restructured Roskomoboron-prom, thus acquiring the category of State Committee; its name was then abbreviated as Goskom-oboronprom.
22. Ekonomika i zhizn’, 1993, 51 (‘Vash partner’).
23. Glukhikh, ‘Oboronnaya promyshlennost’…’, p. 4.
24. S. Gubanov, ‘Mekhanizm konversii: problemy i perspektivy’, Ekonomist, 1993, 7;
25. Ekonomika i zhizn’, 1993, 18 and see
26. Moskovskie novosti, 1993, 30.
27. L. Efanov, ‘Konversiya i menedzhment’, Voenno-ekonomicheskii zhumal, 1994, 1, 2 and 3.
28. Daily, 5 October 1993.
29. Daily, 3 November 1993.
30. Kommersant’, 1993, 11.
31. Inzhenemaya gazeta, 1994, 93.
32. Ukaz Prezidenta RF, ‘O sozdanii finansovo-promyshlennykh grupp v Rossiiskoi Federatsii’, no. 2096 5 December 1993 and
33. Polozhenie ‘O finansovo-promyshlennykh gruppakh i poryadke ikh sozdaniya’.
34. Ekonomika i zhizn’, 1994, 33.
35. Nezavisimaya gazeta, 27 August 1994;
36. Nezavisimaya gazeta, 17 September 1994; and
37. Finansovye izvestiya, 22 September 1994.
38. Finansovye izvestiya, 1 December 1994.
39. Some of these phenomena have been described by S. Johnson & H. Kroll, ‘Managerial Strategies for Spontaneous Privatisation’, Soviet Economy, 7, 4, 1991.
40. Ekonomika i zhizn’, 1993, 11.
41. P. Vinogradov, ‘Sedmaya devyatka v periode’, Voenno-ekonomicheskii zhurnal, 1993, 9.
42. Kommersant’, 1993, 31.
43. R. Karimov, ‘Kak organizovat’ konversiyu’, EKO, 1992, 6.
44. Delovoi mir, 6 June 1994.
45. Krasnaya zvezda, 3 November 1994.
46. Tsentr Ekonomicheskoi Kon'yunktury, ‘Otsenka perspektiv razvitiya rossiiskoi ekonomiki v 1994–1995 godakh’, Obshchestvo i ekonomika, 1993, 5, p. 64.
47. Nezavisimaya gazeta, 17 February 1994.
48. Tsentr Ekonomicheskoi Kon'yunktury, Rossiya-1994: ekonomicheskaya kon'yunktura. (Moscow, September 1994), p. 133. Goskomoboronprom sources indicate that if the military production in 1991 was 100, then in 1992 it only reached 49.5 and in 1993 represented 32.5; see
49. Krasnaya zvezda, 28 January 1995.
50. Tsentr Ekonomicheskoi Kon'yunktury, ‘Otsenka perspektiv…’, p 64;
51. Yu. Glybin, ‘Kontseptsiya i politika konversii predpriyatii oboronnogo kompleksa v khode ekonomicheskikh reform v Rossii’, Voprosy ekonomiki i konversii, 1993, spetsial'nyi vypusk, p. 9; and
52. Nezavisimaya gazeta, 17 February 1994.
53. Ukaz ‘Osnovnye polozheniya voennoi doktriny Rossiiskoi Federatsii’, no. 1893, 2 November 1993 and Nezavisimaya 18 February 1994.
54. Finansovye izvestiya, 22 December 1994.
55. Nezavisimaya gazeta, 18 August 1994.
56. Ukaz no. 1850, 6 November 1993, ‘O stabilizatsii ekonomicheskogo polozheniya predpriyatii i organizatsii oboronnoi promyshlennosti i merakh po obespecheniyu gosudarstvennogo oboronnogo zakaza’
57. Daily, 10 November 1993.
58. Nezavisimaya gazeta, 24 November 1994.
59. Finansovye izvestiya, 22 September 1994.
60. Tsentr Ekonomicheskoi Kon'yunktury, Rossiya-1994…. p. 133. Goskomoboronprom indicates that in 1994 the military production reached 19.9, whereas the value was 100 in 1991; see
61. Krasnaya zvezda, 28 January 1995, and note 42. Other estimates indicated that in 1994 the value would be 6% of the amount of armaments produced in 1991; see
62. Finansovye izvestiya, 1 December 1994.
63. Delovoi mir, 22 June 1994 and Nezavisimaya gazeta, 23 November 1994.
64. Nezavisimaya gazeta, 24 November 1994.
65. Nezavisimaya gazeta, 9 February 1994.
66. Izvestiya, 22 September 1994.
67. L. Depres, ‘Conversion of the Defence Industry in Russia and Arms Exports to the South’, Communist Economies & Economic Transformation, 6, 3, 1994, pp. 367–383.
68. Rossiiskie vesti, 30 March 1994.
69. Izvestiya, 22 September 1994.
70. J. Cooper, The Soviet Defence Industry. Conversion and Reform (London, 1991) and J. Cooper, ‘Military Cuts and Conversion in the Defense Industry’, Soviet Economy, 7, 2, 1991.
71. Zakon Rossiiskoi Federatsii ‘O konversii oboronnoi promyshlennosti v Rossiiskoi Federatsii’, no 2551-1, 20 March 1992 and
72. Postanovlenie Verkhovnogo Soveta Rossiiskoi Federatsii o poryadke vvedeniya v deistvie Zakona Rossiiskoi Federatsii ‘O konversii oboronnoi promyshlennosti v Rossiiskoi Federatsii’, no. 2552-1, 20 March 1992
73. V. Glukhikh, ‘Konversiya: chto v perspektive?’, Delovye lyudi, 1993, 8, p. 12.
74. A. Astakhov, ‘O khoroshem otnoshenii k den'gam’, Delovye lyudi, 1993, 8, p. 64.
75. V. Vezirov, ‘O khode konversii voennogo proizvodstva na predpriyatiyakh otraslei oboron-nogo kompleksa’, Voprosy ekonomiki i konversii, 1993, 4, p. 4.
76. Estimations in dollars have been carried out by the author, the objective being to provide a clearer vision of the financing of conversion. Although they have only a general character, they are useful in detecting the financial trends. As the financial help provided by the state has always suffered delays, the figures in dollars have been considered relevant in the assessment of the second half of 1992. In addition, the average movement of the exchange rates between ruble and dollar has been chosen as relevant information for the period. Thus, by using the data on the dollar/ruble relation, in average monthly terms, in PlanEcon Report, 1994, 37–38, p. 18, we estimate that the average exchange rate during the second half of 1992 was 289. In this way, the 150 000 and 58 900 million rubles are transformed into 519 and 203.8 million dollars. Note that if the exchange rate for the middle of the half-year is chosen (225 in September) as the most representative value, the estimated dollar quantity is larger than that considered (for instance, the total federation funds would come to 666.7 million dollars). If we were to choose the dollar/ruble exchange rate of the last quarter (398.3), then the estimated quantity would be lower (376.6 million dollars).
77. Moskovskle novosti, 1994, 13.
78. V. Ivanov & A. Ukhin, ‘Osnovnye napravleniya realizatsii federal'nykh konversionnykh programm oboronnykh otraslei’, Voprosy ekonomikii konversii, 1993, 3.
79. Glukhikh, ‘Konversiya…’, p. 12.
80. Delovoi mir, 17 March 1994.
81. For the estimation in dollars, the procedure mentioned previously has been applied. In the second half of 1993 the dollar/ruble average exchange rate was 1115.3, and the estimated quantity comes to 332.9 million dollars. As in 1992, if we choose the September exchange rate as relevant, then the amount obtained would be higher than that actually registered; if the average value for the last quarter of 1993 is selected as representative, then the quantity is lower. In addition, it is convenient to indicate that the most pessimistic estimated quantity for 1992, that is, the quantity obtained by using as a reference the last quarter's exchange rate, is higher than the most optimistic 1993 figure, calculated from the September exchange rate. In other words, by following the established hypotheses, a clearly decreasing trend appears in the federal fund assignation from 1992 to 1993.
82. Daily, 18 March 1993.
83. Moskovskie novosti, 1994, 13.
84. ‘Perspektivy stabilizatsii rossiiskoi ekonomiki v 1994 godu’, Ekonomist, 1994, 4, p. 12.
85. Finansovye izvestiya, 1 December 1994.
86. Ukaz Prezidenta R.F. ‘O predostavlenii Pravitel'stvu R.F. v 1994 godu kreditov na konver-sionnye i investitsionnye programmy’, no. 1679-r, 10 1994.
87. Nezavisimaya gazeta, 24 November 1994.
88. Krasnaya zvezda, 22 July 1994.
89. Finansovye izvestiya, 4 August 1994.
90. Postanovlenie Pravitel'stva R.F. ‘O selektivnoi podderzhke aviatsionnoi promyshlennosti i grazhdanskoi aviatsii Rossii v 1995–1996 godakh’, no. 1211, 3 November 1994.
91. As to ruble data, see Nezavisimaya gazeta, 24 November 1994. The estimations in dollars have been carried out by using the average dollar/ruble exchange rate of the respective quarter.
92. Nezavisimaya gazeta, 24 November 1994.
93. Daily, 21 December 1994.
94. Moskovskie novosti, 1993, 28; and
95. Moskovskie novosti, 1993, 31.
96. Daily, 28 July 1994; and
97. Daily, 1 March 1994.
98. Daily, 6 December 1994.
99. Daily, 15 April 1994.
100. Krasnaya zvezda, 12 November 1994;
101. Moskovskie novosti, 1993, 24.
102. Krasnaya zvezda, 15 October 1994.
103. Rossiiskaya gazeta, 15 September 1994.
104. Krasnaya zvezda, 10 September 1994.
105. Izvestiya, 2 September 1994.
106. Daily, 20 October 1994 and
107. Russkaya Aziya, 1994, 19.
108. Rossiiskie vesti, 30 March 1994.
109. Inzhenernaya gazeta, 1994, 72.
110. Moskoviya, 26 October 1994.
111. Inzhenernaya gazeta, 1994, 129.
112. Daily, 22 July 1993.
113. Delovoi mir, 3 June 1994.
114. Delovoi mir, 6 June 1994.
115. J. Cooper, ‘The civilian production of the Soviet defence industry’, in R. Amann & J. Cooper, Technical Progress and Soviet Economic Development (Oxford, 1986).
116. A tendency to reduce the introduction of prototypes in civilian production and therefore to renew the existing production appeared in the Soviet economy. See V. Kontorovich, ‘Prototype Statistics as Indicators of Soviet R&D Priorities in Civilian and Military Machinery Production’, Comparative Economic Studies, 30, 3, 1988.
117. An example is the metal-mechanical plant in Votkinsk. See W. Ritter, ‘Conversión de la defensa soviética: la planta metal-mecanica de Votkinsk’, Problemas Internationales, 1991, 5 (Spanish version of the journal Problems of Communism).
118. Izvestiya, 24 November 1994.
119. Tsentr Ekonomicheskoi Kon'yunktury, Rossiya-1994:…, p. 133. The evolution of the production of civilian goods within the defence industry is estimated by Goskomoboronprom as follows: if the production was 100 in 1991, then in 1992 it was 99.6, 85.6 in 1993 and 52.6 in 1994. see
120. Krasnaya zvezda, 28 1995.
121. Finansovye izvestiya, 3 November 1994.
122. Note that these goods are almost exclusively produced in the defence industry. See Ekonomika i zhizn’, 1994, 24 (Moskovskii vypusk).
123. Tsentr Ekonomicheskoi Kon'yunktury, Rossiya-1994;…, p. 133.