Russian Shipbuilding
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The core of the Russian shipbuilding is formed

On March, 22 President Putin signed seven documents officially founding the basic structures of the nation’s shipbuilding industry in their new status. The presidential decrees where issued namely for the new integrated structures build up under the umbrella of the Krylov Research Institute, Agat, Avrora, Granit-Electron, Electropribor as well as on the Shipbuilding Corporation and Ship-Repair Corporation. Below are the basic principles laid down in the documents (full copies are available):

Open «JSC "Concern "Research-and-Production Association "Avrora"

Federal state unitary enterprise «Research-and-Production Association "Avrora" (St.-Petersburg) is transformed in to an open JSC "Concern " Research-and-Production Association "Avrora" with 100% state owned stock. This JSC gets the state owned shares of the JSC "Varyag" (Vladivostok) - 25,1% and " Neptun" (Stavropol) - 37,99% as the contribution of the Russian Federation into the authorized capital of "Avrora" through the additional emission to be made by "Avrora".

"Avrora’s" specialization is determined as follows: development, manufacturing, delivery, service and repair of 1) automated control systems and combat information-operating systems for the surface ships, the submarines, special underwater devices, sea and river ships; 2) simulators for training crews of the surface ships, the submarines, special underwater devices, sea and river ships; 3) control systems for nuclear power installations.

Open JSC «Concern «Morinformsystema-Agat»

Federal state unitary enterprises «State Moscow Plant «Salute", "Plant "Topaz" (Moscow), «Design Bureau "Amethyst" (Moscow) are transformed into JSCs with 100% state owned stock. After this 100% minus one share of the stock of these enterprises will be added to the authorized capital of «Morinformsystema-Agat» as the contribution of the Russian Federation through the additional emission to be issued by Agat. The state owned shares of the below listed companies will be contributed to the authorized capital of Agat in the same way: 60,35% of "Izumrud" (Vladivostok), 60% "Cometa" (Ulyanovsk) and 80% of «NPO "Meridian" (St.-Petersburg).

The specialization of «Morinformsystema-Agat» is determined as follows: development, manufacturing, warranty service, upgrade, repair and utilization of: 1) integrated fighting information and operating systems for ships, ships’ and coastal radars systems; systems of processing the radar data; control systems of artillery and rocket complexes; the ships’ automated control systems; training complexes; systems of safe simultaneous use of the ships’ arms; systems of measurement and compensation of own electromagnetic fields of the ships and submarines; hardware-software complexes of receiving; transferring and processing of the hydro-physical information; 2) development, sales and maintenance of license manufacturing of the information and operating systems of the ships, including exported.

Open JSC «Concern «Granit-Electron»

100% minus one share of the state owned stock of the below listed JSCs join the authorized capital of the JSC «Granit-Electron» through additional emission, retaining 100% state ownerships of the latter: «Severny Press» (St.-Petersburg), «Plant Kulakova» (St.-Petersburg), "Ravenstvo".

Specialization of «Granit-Electron»: development, manufacture, warranty and service, modernization, repair of the control systems for anti-ship and anti-torpedo arms of the surface ships; radio complexes of displaying surface conditions and aiming; sea based and ground mobile radar stations; information-operating complexes of radio-electronic arms.

Open JSC «Concern «Central Research Institute «Electropribor»

Federal state unitary enterprise «Central Research Institute "Electropribor" (St.-Petersburg) is transformed into an open JSC "Concern "Central Research Institute "Electropribor" with 100% state owned stock. As in the cases above "Electropribor" will get the 38% plus one state owned shares of the «Altai Instrument-Building Plant "Rotor" (Barnaul) through additional emission as the contribution of the Russian Federation.

«Electropribor’s» specializations: development, manufacture, modernization and life-time support in operation of navigation and communication equipment for the surface ships, submarines, sea and river vessels.

All above decrees in the preamble had “at the proposal of the government”. Below mentioned Krylov Center is created “at the proposal of the Krylov institute”.

«Federal State Unitary Enterprise «Krylov State Scientific Centre»

The following State Research Institutes are attributed to the existing Krylov Research Institute: «Acoustic Institute n.a. Academician N.N.Andreev» (Moscow) and «Central Research Institute for Ships’ Electric Engineering and Technologies» (St.-Petersburg). The new structure is raised to the level of a federal scientific center.

Specialization: fundamental research in the fields of sea hardware; perspective ship designs; development and justification of shipbuilding programs; examination of the ships’ designs; researches in the fields of hydrodynamics, seaworthiness and stability of the ships; researches in the field of hydro-acoustics; development of a scientific foundations for hydro-acoustic arms; research of electro-power systems; designing ships electro-technical equipment, blades and propeller complexes; development of the projects of sea and river ships; design and development of the oil and gas shelf platforms.

Open JSC United Shipbuilding Corporation (OSK)

At the proposal of the government of the Russian Federation the open JSC OSK with 100% federal ownership is to be formed in the period of four months. The initial authorized capital of OSK is formed on the basis of the 60% state owned shares of Nevskoe Design Bureau as well as 25 million rubles. Simultaneously the daughter companies of OSK are established:

- Open JSC «Western Center of Shipbuilding» (St.-Petersburg), 100% state owned. The basis for the initial authorized capital is 100% minus one share of the state owned «Svetlovskoe Enterprise "ERA" (Kaliningrad region) and 25 million rubles.

- Open JSC «Northern Center of Shipbuilding and Ship Repair» (Severodvinsk, Arkhangelsk region), 100% state owned. The basis for the initial authorized capital is 100% minus one share of the state owned «Design Bureau Rubin-Sever» and 25 million rubles.

- Open JSC «Far East Center of Shipbuilding and Ship Repair» (Vladivostok), 100% state owned. The basis for the initial authorized capital is 100% minus one share of the state owned "Scientific Research Institute «Bereg » and 25 million rubles.

FGUP «Machine-Building Enterprise "Zvezdochka" (Severodvinsk) is renamed into FGUP «Center of Ship Repair "Zvezdochka" with attaching to it the below listed companies: «Nerpa» (Snezhnogorsk), NPO "Vint" (Moscow), 10th, (Polyarny, Murmansk region), 35th , 82th , (Roslyakovo, Murmansk region), 1st (Sochi, Krasnodar krai) and Astrakhan ship repair plants of the MoD as well as 5th ship-repair plant of the Border Guard Service.

The following entities are transformed into 100% state owned JSCs: «Severnoe Design Bureau» (St.-Petersburg), Central Maritime Design Bureau "Almaz" (St.-Petersburg), «Zelenodolsk Design Bureau» (Zelenodolsk, Republic of Tatarstan), Central Design Bureau "Rubin" (St.-Petersburg), St.-Petersburg Maritime Bureau of Machine-Building “Malachite”," Research Design-Technological Bureau "Onega" (Severodvinsk). After this 100% minus one share of the above companies will form the contribution of the Russian Federation into the authorized capital of the OSK through additional emission.

The same scheme will be applied when forming the authorized capital of the «Western Center of Shipbuilding» on the basis of the contributions by Admiralty Shipyards, Sredne-Nevsky Shipyard, Kronshtadt Plant, 33th Ship Repair Plant of the MoD (Baltiysk, Kaliningrad region).

State Center of Ship Repair Zvezdochka, Severnoe Production Association Arctica, Sevmash and Special Design Bureau of Electro Chemistry with its experimental plant (Moscow) will be transformed into 100% state owned JSCs and form the basis of «Northern Center of Shipbuilding and Ship Repair».

With the authorized capital of the «Far East Center of Shipbuilding and Ship Repair» (again on the principles of 100% state ownership and additional emission of shares) the government’s contribution are: «Zvezda» (Bolshoi Kamen), «Khabarovsk Shipyard», 30th (Dunai), 92nd (Vladivostok), 178th (Vladivostok), 179th (Khabarovsk) ship repair plants of the MoD of the Russian Federation, «Northeast Regional Center on Repair and Recycling of Arms and Military Technic» (Vilyuchinsk, Kamchatka) of the MoD. (All are converted into JSCs)

Also through additional emission OSK will get the state owned stocks of the St.-Petersburg based Design Bureau "Iceberg" (24,49%), Nizhni Novgorod based «Central Design Bureau Alekseeva» (14,99%)

In the same way «Western Center of Shipbuilding» will be contributed with the state owned stocks of: the St. Petersburg based «Severnaya Verf» (20,96%), Nizhni Novgorod based «Krasnoe Sormovo» (33,53%) and 51% of the Kaliningrad based "Yantar"; «Far East Center of Shipbuilding and Ship Repair» - 20% of «Holding Company Dalzavod» (Vladivostok), 10% of «Nikolaev-on-Amur Shipyard» (Nikolaevsk-on-Amur, Khabarovsk region), 20% of «Amur Shipyard» (Komsomolsk-on-Amur).

Before January, 1, 2009 100% minus one share of all above three daughters of OSK must be integrated into the authorized capital of the mother company through additional emission. The specialization of the OSK is officially determined as follows: development, design, manufacture, delivery, warrantee and service, modernization, repair, recycling of shipbuilding goods of military and civil purpose as well as the constructions for continental shelf in the interests of the state and other customers, including foreign, as well as introduction of new technologies and developments in the field of shipbuilding.

The government of the Russian Federation must fulfill the above listed measures before April, 1, 2009. Within two months the government is to: 1) allocate the necessary funds for established the cash part of the authorized capitals as mentioned above; 2) set up a governmental commission which will work on establishing the OSK; prepare the conditions for including the three daughters of OSK into the list of strategic companies, 3) timely amend the required legislation.

Open JSC «Center of Shipbuilding and Ship Repair Technology»

«Central Research Institute of Shipbuilding Technologies» (St.-Petersburg) is transformed into a JSC «Center of Shipbuilding and Ship Repair Technology» with 100% state owned stock. This JSC will also get now state owned stocks of the following companies through additional emission: 38% of the JSC "Plant Burevestnik" (Gatchina, Leningrad region) and 29,97% of the JSC «Proletarsky Zavod» (St.-Petersburg).

Specialization: development and introduction of new high techs of shipbuilding and ship-repair; technological maintenance of designing, construction, maintenance, repair and recycling of the ships in Russia and abroad; designing and technological upgrading of the technologies of the shipbuilding and ship repair centers; designing and manufacture of ship armature and mechanical engineering; development, manufacturing and delivery of the specialized equipment and tools for shipbuilding production lines. The «Center of Shipbuilding and Ship Repair Technology» also enters the list of strategic companies.

All above enter the list of the strategic enterprises. The government is to ensure measures necessary for implementing the above provisions. The decrees came into force from the date of signing.

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