Within the Russian Federation, there are organizations and agencies at every level, from the central government to the defense enterprise itself, that are involved in defense conversion. Listed below are organizations involved in facilitating 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 the central and local governments and at the enterprise level which further adds to the complexity of defense conversion.
II. CENTRAL GOVERNMENT LEVEL
The organizational chart on the following page outlines 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.
III. QUASI-GOVERNMENTAL/INDEPENDENT AGENCIES
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 Privatization (CCP) which is headed by Dr. Gennadiy B. Kotchetkov and meets with Western academic and business officials to discuss the major elements and problems of "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, seeks to become a focus for business ties between Western firms and Soviet defense firms.
C. Military Industrial Investment Company (VPIK): The 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. Its most prominent members include the Military Industrial Stock Exchange; Russian Commodity-Raw Material Exchange; Moscow Central Stock Exchange; Central Scientific Research Institute of Machine Building; Pleshakov Scientific Production Association; Khrunichev Plant; Economic News Agency; KAMI Stock Exchange; Military Unit 57275; Impuls Scientific Production Association; and the Dzerzhinskiy Military Academy.
IV. LOCAL/REGIONAL GOVERNMENT LEVEL
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 provide market information on area defense firms. Another example is Uralkonversiya, an agency headed by Dr. Yevgeniy V. Kulkin, 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 since these leaders have the most at stake in the area of defense conversion, especially in regions where enterprises employ a majority of the population.
V. ENTERPRISE/FIRM LEVEL
At the company level, managers have set up organizations in order to directly develop joint verntures. These associations have been organized in the major cities and defense industrial centers throughout the Russian Federation.