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Справочник оборонных предприятий России : Санкт-Петербург и Ленинградская область / подготовлен Министерством торговли США, Бюро экспортного администрирования; [Франклин Дж. Карвалью, редактор]
https://archive.org/details/russiandefensebu00unit
Russian defense business directory : St. Petersburg and Leningrad Oblast / prepared by U.S. Department of Commerce, Bureau of Export Administration ; [Franklin J. Carvalho, editor]
C 57.121: R 92/996 Prepared by: U.S. DEPARTMENT OF COMMERCE Bureau of Export Administration ACKNOWLEDGEMENTS The author wishes to acknowledge the contributions of many individuals, agencies and companies to the Directory. The author especially wishes to acknowledge the contributions of Robert May, Dale Slaght, Rich Steffens and Karen Zens of the U.S. & Foreign Commercial Service in Russia and Don Stanton of the Bureau of Export Administration for their contributions. Additional copies of this document*, as well as future installments, may be obtained for a nominal fee from: National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 Phone: (703) 487-4650, Fax: (703) 321 8547, Telex: 64617 COMNTIS. E-mail: [email protected], Internet: http:Wwww.ntis.gov Order by Publication Number(s): Fifth installment (paper copy): PB96-100177 Copies of the Directory are also available from the: Department of Commerce Economic Bulletin Board (EBB): The Directory highlights and enterprise profiles are available in electronic format through the Department of Commerce's Economic Bulletin Board (EBB). Located under "Defense Conversion Subcommittee Information for Russia and the NIS" (Area 20 on the EBB). For more information regarding access or use, call EBB Info/Help line at (202) 4824986 . National Trade Data Bank: A CD-ROM version of the cumulative version is available in the current edition of the National Trade Data Bank (NTDB) at a cost of $59.00 or annual subscription of $575.00. NTDB's phone number is (202) 482-1986, e-mail: [email protected]. Internet: httpWwww.stat-usa.gov Points of contact for changes and updates to information in the Directory: Franklin J. Carvalho, Editor Room H- 1089 Bureau of Export Administration U.S. Department of Commerce, Washington, DC 20230 Phone: (202)482-0672 Fax: (202)482-3195 Internet: [email protected] This work sponsored by the Defense Nuclear Agency under DNA IACRO#94-7620 and Work Unit CPB ^*T c ccu. 7&k *^TES 0* UNITED STATES DEPARTMENT OF COMMERCE The Deputy Under Secretary for Export Administration Washington, DC 20230 Pennsylvania State Un:ver: 7 Libraries July 31, 1996 MAY 0 5 1997 Documents Collection U.S. Depository Copy The publication of this fifth installment of the Russian Defense Business Directory, focusing on St. Petersburg and the neighboring Leningrad Oblast, underscores the continued commitment of the U.S. Department of Commerce to working with Russian industry in making a successful transition to profitable civilian endeavors, and it highlights the critical role of private trade and investment in helping Russian defense enterprises shift to commercial ventures. The Department of Commerce works actively to remove unnecessary obstacles to trade and investment, foster commercial cooperation, and facilitate American involvement in this region. Since the publication of the fourth installment of the Directory, we have continued our efforts to alert U.S. industry to opportunities in Russian defense conversion. For example, the U.S. Department of Commerce, together with the Agency for International Development and U.S. Departments of Defense and Energy, sponsored an Entrepreneurial and Defense Conversion Conference in Yekaterinburg, Russia from May 20-24, 1996. More than 40 U.S. business representatives and over 150 Russian representatives from the Urals participated in the conference and held business discussions about opportunities in central Russia. Through other Commerce efforts, such as the Special American Business Internship Training (SABIT) program, the Commercial Service officers, the Business Information Service for the New Independent States (BISNIS). and the American Business Centers, we have also supported the development of business ties between U.S. firms and converting Russian defense enterprises. Equipped with this installment of the Russian Defense Business Directory. American firms can access a wealth of business opportunities available in Russia. In doing so, they are equipped with the information to promote trade, investment, and free market know-how necessary to help speed Russia's transition to a market economy. ">•»-. We encourage American companies to pursue vigorously the opportunities this Directory unveils. By doing so, they will advance the long-term goals of both nations—democracy, market reform, economic prosperity, and peace. Barry E. Carter CONSULATE GENERAL OF THE UNITED STATES OF AMERICA As U.S. Consul General in St Petersburg, Russia, I am very pleased that this edition of the U.S. Department of Commerce Russian Defense Directory is highlighting the City of St Petersburg and surrounding Leningrad Oblast . St Petersburg and the neighboring region have been at the heart of the Russian defense industrial complex since before the Russian Revolution in 1917. Today they are playing a leading role in the privatization process and development of a dynamic market economy in Russia; however, the major enterprises and institutes of this city and region face the difficult task of applying their defense technologies to civilian use. If they are to survive, they must shift their resources to producing consumer products which satisfy the needs of the Russian consumer and can compete on the world market . American firms are in a special position to cooperate with Russian enterprises in this effort since many American firms also are facing the challenge of defense conversion. American companies are world leaders in the management skills which Russian firms require. At the same time American firms now have access to a wide range of Russian technologies which can be developed to mutual benefit for the Russian and American economies. This directory is part of the U.S. Government's efforts to assist Russian and American firms in the defense conversion process. It offers a wide range of information which can help American companies identify business opportunities and potential partners. I encourage American firms to take advantage of the enclosed information to investigate this market. I and my staff at the U.S. Consulate stand ready to support your efforts. JBin^erelv, ohn M . Evans onsul General POCCHHCKAfl OE^EPAUHfl nPABHTEJIbCTBO JIEHHHTPAACKOM OBJIACTH 193311, CaHKT-nerep6ypr, CyBopoBCKHfi np., 67 JVia TeneipaMM: CanKT-nerep6ypr, 193311 TeJicTafin 121025 "Bpevci" rcn. 315-62-72 (paKC 271-56-27 American Consulate General U.S. Foreign Commercial Service 57 Bolshaya Morskaya street St. Petersburg, 190000 Russia N Ha N i r on and social changes occuring in a new and positive way the the economic & political map of Region is one of the most promising investment in the entire Russian The political, economic Russia today are defining in Leningrad Region's place Europe . Today the Leningrad areas for business and Federation. First, the Leningrad Region is the shortest sea link from the West to Russsia's enormous internal market. Second, the region is an active leader in industrial privatization and in private sector development. In addition, the Leningrad Region is endowed with a relatively well developed infrastructure and is rich in the availability of highly skilled specialists of most every profession. All these factors make the Leningrad Region a very attractive place to do business. In today's intensely competitive business world smart decision-making depends on quality sources information. I beleive that this publication will assist entrepreneurs and investors in understanding more fully the business environment in the Leningrad Region; it will also decrease their risk. Our region's enormous investment potential and rich cultural traditions combine to create a very favorable environment for mutually beneficial cooperation. We welcome your interest and look forward, to working with you. Alexander Belyakov, Governor of the Leningrad Region nEPBblH 3AMECTHTEAb nPE4CEMTEA51 nPABHTEAbCTBA CAHKT-nETEPBYPrA nPEACEAATEJIh KOMHTETA 3KOHOMHKH H OHHAHCOB 190000 CaHKT-rieTep6ypr, Bo3HeceHCKKH np., 16 Te/iecpoH 319-92-92, (paKc 319-95-54 r 17.1194 N? 01-02/313 Ha No Ot ~ir ~l _j Dear Readers, At this time of industrial reconstruction in Russia, cooperation with western countries and the United States becomes especially important. Business cooperation with American companies can be of great assistance to Russian enterprises as they enter the world market. The joining of our defense industry's high technologies and American experience in marketing and trade will help us save jobs which is the major goal of the St Petersburg administration. The main purpose of this directory is to help American companies locate appropriate enterprises for cooperation. Previous editions of the directory have already resulted in several cases of such cooperation. I wish the readers of this directory success in finding business partners in St Petersburg' Alexey L. Kudrin, First Deputy Chairman of the City Government Digitized by the Internet Archive in 2013 http://archive.org/details/russiandefensebuOOunit „^tNTOf„ ^ rRADE ^ U. S. & Foreign Commercial Service American Consulate General Bolshaya Morskaya Street, 57 St Petersburg, Russia April, 1996 On behalf of the U.S. Commercial Service in St Petersburg I welcome readers to this edition of the Department of Commerce Defense Conversion Directory, which focusses on the opportunities for American business in St Petersburg and the surrounding Leningrad Oblast . As the Directory demonstrates, the St Petersburg-Leningrad area is rich in business opportunities for American firms. St Petersburg has played a major role in the development of Russian technology and industry throughout the history of Russia and has a tradition of openness to foreign partners. It is the center of a dynamic and potentially enormous commercial market for American products and services. The Commercial Service office of the United States Consulate in St Petersburg was established in January, 1993 to assist American firms seeking to explore and develop commercial operations in Northwest Russia. We offer a variety of services to help American companies understand the local market, establish key business contacts and resolve problems encountered in starting operations in this region. We have a trained staff of Russian specialists and American officers ready to serve you. Our office is located in the center of St Petersburg. Co- located with the Commercial Service office is the American Business Center, which provides visiting American business representatives with essential business services, such as temporary office space, access to international telecommunications, translation, interpretation and other services. Please do not hesitate to contact our office. We look forward to working with you as you explore this exciting and challenging market. Sincerely, David K. Schneider Principal Commercial Officer Local Tel: (812) 110-6656 / 110-6727; Fax: (812) 110-6479 International Tel: 7 (812) 850-1902; Fax: 7 (812) 850-1903 Mail from U.S. American Consulate, St Petersburg - FCS. PSC 78 Box L. APO AE 09723 Contact Information UNITED STATES COMMERCIAL SERVICE AMERICAN CONSULATE GENERAL 57 Bolshaya Morskaya Street (second floor) 190000 St .Petersburg, Russia Local telephone: Local fax: Int'l telephone: Int'l fax: Mail from the U.S.: 812-110-6656 812-110-6479 7-512-850-1902 7-512-850-1903 American Consulate General-FCS PSC 78, Box L APO AE 09723 Principal Commercial Officer Commercial Officer Commercial Assistant Commercial Assistant Commercial Assistant Commercial Assistant BISNIS Representative Office Manager Commercial Clerk/Receptionist Driver David K. Schneider Robert S . May Mikhail Minkevitch Alexander Kansky Marina Kamayeva Elena Kuzmina Alexei Kim Irina Sergeyeva Elena Lysova Dmitry Krutikov AMERICAN BUSINESS CENTER AMERICAN CONSULATE GENERAL 57 Bolshaya Morskaya Street 190000 St .Petersburg, Russia Local telephone : Local fax: Int'l telephone: Int'l fax: Mail from the U.S. : first floor) 812-110-6042 812-311-0794 7-512-850-1900 7-512-850-1901 American Consulate PSC 78, Box L APO AE 09723 General -ABC Manager Assistant Manager ABC Clerk ABC Receptionist Robert May Janna Agasieva Maria Chernobrovkina Kamilla Lapkina PREFACE INTRODUCTION TABLE OF CONTENTS CHAPTER 1: ENTERPRISES IN ST. PETERSBURG/LENINGRAD OBLAST CHAPTER 2: MINI-PROFILES OF ADDITIONAL ENTERPRISES IN ST.PETERSBURG/LENINGRAD OBLAST CHAPTER 3: ENTERPRISES OUTSIDE LENINGRAD OBLAST AND UPDATES TO SOME 4TH EDITION ENTERPRISES CHAPTER 4: INVESTING IN RUSSIAN DEFENSE CONVERSION: OBSTACLES AND OPPORTUNITIES CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8 CHAPTER 9 U.S.AND RUSSIAN EXPORT CONTROLS RECENT BILATERAL AGREEMENTS ADDITIONAL SOURCES OF INFORMATION SOURCES OF FINANCING INFORMATION ON RUSSIAN FEDERATION LAWS REGARDING DEFENSE INDUSTRY CONVERSION AND PRIVATIZATION CHAPTER 10: RUSSIAN GOVERNMENT AUTHORITIES INVOLVED IN DEFENSE CONVERSION CHAPTER 11: MARKET RESEARCH AND TRANSPORTATION SERVICES INFORMATION CHAPTER 12: DIRECTORY OF BUSINESS SERVICES CHAPTER 13 COMMERCIAL & RESIDENTIAL REAL ESTATE INFORMATION CHAPTER 14 DEFENSE CONVERSION SUCCESS STORIES CHAPTER 15 BUSINESS PRACTICES, SAFETY AND SECUR1 IV U.S. Department of Commerce RDBD 5 - St. Petersburg Juh loot, CHAPTER 16 DIRECTORY OF BUSINESS SERVICES FORMS: - Special American Business Internship Training (SABIT) Program Application - Directory Enterprise Profile (in Russian) - NTIS Order Form - BISNIS Search for Partners Form - Comments and Mailing List Request The Department of Commerce is providing this information to the U.S. business community to facilitate commercial contacts. It does not endorse any, or all, of these enterprises, nor does it intend for this list to comprise the enterprises which present the best Russian defense-related business opportunities. The department is not rank ordering the enterprises in any way. While the Department of Commerce has made every effort to ensure the reliability of the information contained in this directory, it cannot guarantee either its accuracy or completeness. U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg i i PREFACE The U.S. Government as a whole has taken many steps to develop its cooperation with Russia and to promote Russian defense conversion. This Fifth volume of the Russian Defense Business Directory is a sign of the continued commitment of the U.S. Department of Commerce to assisting Russian defense industry in making a successful transition to profitable civilian endeavors. The Fifth volume focuses on opportunities for American business in St. Petersburg and the surrounding Leningrad Oblast. St. Petersburg has played a major role in the development of Russian technology and industry throughout the history of Russia and has a tradition of openness to foreign partners. It is the center of a dynamic and potentially enormous commercial market for U.S. products and services. Until recently, defense enterprises recently produced 70 percent of the city's output and employed half the work force. A few years back, St. Petersburg produced 25 percent of all the military hardware used in the Soviet Union. Almost 400 scientific research institutes are located in the city. The U.S. Government believes that the key engine of defense conversion will be U.S. private sector investment. Each chapter contains the following information: Chapter 1 - Full length profiles of 60 defense enterprises in St. Petersburg and Leningrad Oblast. Chapter 2 - Mini-profiles of (135) additional enterprises in St. Petersburg and Leningrad Oblast. Chapter 3 - Profiles of (15) enterprises outside Leningrad Oblast and updates to some 4th Edition enterprises. Chapter 4 - Information on investing in Russian Defense Conversion: Obstacles and Opportunities. Chapter 5 - Information on U.S. and Russian Export Controls. Chapter 6 - Recent Bilateral Agreements. Chapter 7 - Additional Sources of information. Chapter 8 - Government-backed and private sponsored Sources of Financing. Chapter 9 - Information on Russian Federation Laws regarding defense industry conversion and privatization. U.S. Department of Commerce .hilv W^ RDBD 5 - St. Petersburg i Chapter 1 0 - Information on Russian Government authorities involved in defense conversion. Chapter 1 1 - Regional and other useful information Chapter 12 - Market Research and Transportation services information. Chapter 1 3 - Information on Commercial & Residential Real Estate in St. Petersburg. Chapter 14 - Defense Conversion Success stories. Chapter 15 - Information on Business Practices, Safety and Security. Chapter 16 - Directory of Business Services. U.S. Department of Commerce July 1996 RDBD - St. Petersburg ii INTRODUCTION Federal and Regional Government officials have developed comprehensive plans for diversification of many of St. Petersburg's defense enterprises. However, individual enterprise managers generally make their own decisions regarding the extent and pace of conversion or diversification. The numerous opportunities for potential conversion projects make St. Petersburg defense enterprises a logical choice for foreign investment and partnership. As of April 1996, over 1 80 American companies had opened representative offices in St. Petersburg offering a wide spectrum of western services and products. About 30 of these companies have established manufacturing projects with local defense enterprises. Mayor Anatoliy Sobchak, elected for a five-year term in June of 1991, has been a leader of the democratic reform effort in Russia since 1989. Under his direction, the city government is openly probusiness and has lead a dynamic campaign of reform resulting in privatization of over 70% of St Petersburg's enterprises as of August 1994. The office of the Mayor of St. Petersburg has been upgraded to a Governorship and the new Governor is Vladimir A. Yakovlev. Considered the most European city in Russia, St. Petersburg is a cultural center with more than 50 museums, including the world renowned Hermitage Museum, and approximately 40 theaters and concert halls, such as the Marinskiy (Kirov) and Maliy. St. Petersburg was founded by Peter the Great in 1703, and it is a major historical center that attracts up to a million tourists annually. St. Petersburg was the host city for the Goodwill Games in the summer of 1994. There are daily flights from the United States and many European capitals to St. Petersburg. Despite its many tourist attractions, St. Petersburg lacks an adequate tourist infrastructure in terms of hotels and restaurants. A city of 55 hotels, only two five-star hotels, with a total of 1,210 beds, offer a level of service at or near western standards. However, in the tourist industry, as in other sectors, there are numerous development projects underway or in the planning stage. St. Petersburg today is one of the most dynamic regions in Russia. LENINGRAD OBLAST The Leningrad Oblast (or region), with a population of 1 .8 million people, is a vast area covering 85,900 km which surrounds St. Petersburg. Together, the city and Oblast represent the second largest industrial center in Russia. The Oblast stretches from the Finnish border in the northwest to Estonia in the southeast, and has 330 kilometers of coast line, with several natural bays and ports It is rich in natural resources and has a varied industrial and agricultural base closely linked to that of Si Petersburg The major industrial sectors in the Oblast are: metallurgy, electrical engineering, petrochemicals, light industry and food processing. Nearly 80 percent of the Oblast' s production is oriented towards regional and domestic needs. Over 300 enterprises in the Oblast are engaged in the manufacture of oil products, primary aluminum, mineral fertilizers, sulfuric acid, feed protein, cement, construction U.S. Department of Commerce Jr. RDBD 5 - St. Petersburg i materials, pulp and paper, food and consumer goods. Approximately 60 percent of these enterprises remain State run. The Oblast also has played a significant role in military-related production and its defense enterprises have close access to St. Petersburg's prestigious scientific and research facilities. The economy of the Oblast relies heavily on its natural resources of granite, sand, clay, limestone, combustible shale, bauxite, peat, and phosphates which are used in the construction industry, chemical production and peat production. Twenty per cent of the region's industrial production is derived from the forestry industry, wood processing and cellulose and paper industries. The local pulp and paper mills account for 8 per cent of the paper and 14 per cent of the cardboard produced in Russia. The Oblast possesses an extensive transportation system, including the October Railway, one of the largest railway systems in Russia, and a well-developed inland waterway system of rivers and canals. The road connections with Finland carry a substantial volume of cargo bound not only for St Petersburg but the rest of western and central Russia as well. Banking services in the Oblast are expanding, with many of Russia's largest banks operating in the Oblast. Due to the geographic diversity of the Oblast as well as its location on the northwestern border of Russia, it has a growing tourist industry totaling approximately 2 million visitors annually. The concept for the Oblast regional government was created by Peter the Great in 1708. Today the Oblast is a constituent subject of the Russian Federation and comprises 23 administrative- territorial units (17 districts and 6 towns). The current Oblast government, under the direction of Governor Alexander S. Belyakov, is taking a proactive role in guiding the region's development, especially with respect to port facilities and infrastructure projects. It has been particularly open to foreign investment and very cooperative with foreign firms which are considering the market opportunities in the Oblast. The Oblast's diverse geography and industrial base offer numerous opportunities for foreign Investment and joint projects in the defense diversification sector. FINDING ASSISTANCE IN ST. PETERSBURG Government Agencies Governor's Office: Committee on Foreign Relations Foreign Economic Relations Department Address: Smolny Tel: (812)271-0767 Contact: Alexey B. Miller, Chairman Fax: (812) 278-1633 Foreign Investments Department Address: Smolny Tel: (812)278-1679 Contact: Sergey V. Balashov, Chairman Fax: (812) 278-1633 U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg i i Registration Department (For registering new companies) Address: 6, Antonenko Street Tel: (8 1 2) 3 1 5-8 1 56 Contact: Albert V. Stepanov Fax: (8 1 2) 3 1 2-62 1 7 Deputy Chairman St. Petersburg Tax Authorities Address: 53, Liteiny Prospect Tel: (812) 272-0188 St. Petersburg 191104 Fax: (812) 275-3742 Contact: George Poltavchenko, Head of Department Committee on Economy and Finance Address: 16, Voznesensky Avenue Tel: (812)319-9360 Contact: Igor Bakhmetiev, Tel: (812)319-9559 Deputy Chairman Fax: (812)319-9554 Economic Relations Department Address: 16, Voznesensky Avenue Tel: (812)319-9666 Contact: Sergei E. Naryshkin Tel: (812) 3 19-9658 Head of Department Fax: (812)319-9554 Telex: 121465 LSWS SU Department of Analysis and Forecasting (Defense Industries Conversion) Address: 1 6, Voznesensky Avenue Tel: (8 1 2) 3 1 9-9072 Contact: Nikolai Safronov Fax: (812)319-9554 Department Chairman Department for Coordination of Federal and Regional Programs for Industrial Development Address: 1 6, Voznesensky Avenue Tel. : (8 1 2) 3 1 9-9622 Contact: Oleg Mostov Fax: (812) 3 19-9554 Department Chairman Associations and Business Organizations The Leontief Center Address: 16, Voznesensky Avenue Tel: (812) 3 19-9755 Contact: Natalya I. Krivochenko Fax: (8 1 2) 3 1 9-98 1 4 Director. E-mail: Leontief SPb SU Department of Foreign Economic Relations U.S. Department of Commerce Juh RDBD 5 - St. Petersburg i i i Union of Industrial and Building Enterprises Address: Entrance No. 5, Smolny Tel: (812) 278-1580 Contact: Victor N. Ivanov, Fax: (812) 278-1580 General Director Industrial Enterprises Association Address: 27, Engels Prospect Tel: (8 1 2) 25 1 -4003 Contact: Valery A. Ushakov Fax: (812) 553-7001 Director of Foreign Relations St. Petersburg Branch of the Committee of Defense Industry, Central Research Conversion Institute Address: 70, Krasnogo Flota Embankment Tel: (8 12) 3 1 1-5974 Contact: Grigori B. Kezling, Director Fax: (812) 3 1 1-5960 St. Petersburg Joint Venture Association Address: 36, Plehanova Street Tel: (812) 312-7954 Contact: Vladimir I. Kogin Fax: (812)315-9470 General Director Telex: 121 132 JVLEN SU St. Petersburg Chamber of Commerce and Industry Address: 46/48, Tchaikovskogo Street Tel: (812) 273-4896 Contact: Victor M. Kuznetsov Fax: (812) 272-6406 Deputy President Telex: 121324 LTPP SU Association for Intel Cooperation Address: 21, Fontanka Naberezhnaya Tel: (812) 3 1 1-4084 Contact: Tatyana R. Kuzmina Fax: (8 1 2) 3 1 1 -4089 Executive Director Telex: 1 2 1 649 LOSOD SU Other Helpful Resources St. Petersburg Stock Exchange Address: 279, Ligovsky Prospect Tel: (812) 298-893 1 Contact: Grigory A. Rozhkov Fax: (812) 296-1080 Director, Foreign Economic Relations OVIR (Department of Visas and Registration): Address: 4, Saltykova-Shchedrina Street Tel: (812) 278-2481 Contact: Leonid A. Savitsky Head of OVIR U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg iv FINDING ASSISTANCE IN THE LENINGRAD OBLAST Government Agencies Leningrad Oblast Administration: Ministry for External Affairs Tel: (812) 274-4859 Address: 67, Suvorovsky Avenue Fax: (812)274-5986 Contact: Inna Bigotskaya External Affairs and Foreign Investments Department Associations and Business Organizations Economic Cooperation Association NW Territory-Russian Federation 3, Smolny Street Tel: (812)274-4268 St. Petersburg, Russia, 1933 1 1 (812) 274-8986 Contact: Vladimir I. Maksimenko Fax: (812) 1 10 0040 Deputy General Director Leningrad Regional Agency for Economic Development Address: 38, Serpukhovskaya Street Tel: (812) 316-2765 St. Petersburg, Russia, 198147 (812) 110-1099 Contact: Lyudmila V. Artamonova Fax: (812) 3 16-0521 Director Lenoblvneshtorg Ltd. Address: 3, Smolny Street Tel: (812) 110-0006 St. Petersburg, Russia, 1 933 1 1 Fax: (8 1 2) 1 1 0-09 1 4 Contact: Vadim V. Lebedev Deputy Director U.S. Department .of Commerce Julv W^ RDBD 5 - St. Petersburg v CHAPTER 1 - DIRECTORY OF RUSSIAN ENTERPRISES A. PROFILE KEY ELEMENTS Each entry provides the following information: ENTERPRISE NAME: This entry provides the name by which the enterprise is most commonly known. We have also tried to provide the most commonly known alternative names of the enterprise. Names of facilities in Russian can vary widely. At times, some enterprises were known under the name of the building in which it was located or a location within a city. In addition, many enterprises have changed their names over the past year. ADDRESS/TELEPHONE: This entry provides the address in Russian format. Writing first is suggested. When following up on a lead by mail, the addresses should be written in the following format, preferably in Russian, to assure proper delivery: Country name in Russian Zip Code City Street Name, Street # Apartment/Office # Addressee (Name of company and contact) Country name in English Space is provided for telephone, telex, teletype, fax and Electronic Mail (E-Mail). Where no number appears, information will be added as it becomes available. The reliability of these numbers varies and the lines of communication are not always operating Telegrams are a useful and reliable mechanism for communications. Note that the Russian communications system differentiates among telegraph, teletype, and telex. Use International Access Code "Oil" to place a station-to-station call and "00" for operator- assisted calls (e.g., person-to-person calls). The Russian term "TELEGRAPH" refers to a telegraphic address using the city communications center, which delivers the telegram (comparable to sending a telegram via Western Union in the U.S.). The Russian term "TELETYPE" relates to the internal NIS (former Soviet Union) telecommunications system directly to a terminal at an enterprise The keyboard and printer are in Cyrillic. Finally the Russian term "TELEX" means the U.S. Department of Commerce Julv W^c RDBD 5 - St. Petersburg 1 - 1 international telex telecommunications system directly to a terminal at an enterprise. The keyboard and printer are usually in Latin characters. Some private information enterprises and most likely some city telecommunications centers offer a service of providing a manual interface between the Telex and Teletype or Telegraph systems. Increasingly, Russian government and enterprise officials are using Internet-compatible E- Mail (via domestic networks such as Relcom and international links such as SprintNet, Sovam Teleport, etc.) to communicate quickly, reliably and conveniently. Following issuance of the second installment, our own E-Mail has increased substantially, using the addresses listed therein. The process works! ! Information sent via an E-mail file requires approximately five percent the size of the corresponding fax file. E-Mail also provides greater flexibility than fax transmissions, as messages can be stored until the receiving end is operating. Moreover, E-Mail rates may be less expensive than fax rates at the point of origin. GENERAL OVERVIEW: This entry provides a general overview of the enterprise detailing its major products and technology. PRIMARY BUSINESS: This lists the specific military focus of the enterprise (e.g. electronic components) and provides the nearest equivalent U.S. Standard Industry Classification (SIC) code(s) for it. When available, we intend to provide the Harmonized Tariff Schedule (HS) number(s). FORMER MINISTRY SUBORDINATION: In the past, one of several central ministries controlled Soviet defense industry enterprises. The majority of defense plants in Russia today are now subordinate to, although not strictly controlled by the Russian Ministry of Defense Industry. EMPLOYMENT: This provides the latest known number of employees. Today these figures are highly variable as many enterprises are in a state of flux as they restructure to adapt to an evolving economic system. PRINCIPAL OFFICERS: This lists the known principal officers of the enterprise (along with their titles) OWNERSHIP: Until the past year, the state owned all defense enterprises in Russia. With the introduction of economic reforms, some have now become joint-stock companies as part of the privatization process and others are leased. Where known, this entry indicates who owns what share of joint-stock firms. U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 1-2 YEAR ESTABLISHED: Date the enterprise was established. This information may provide some indication of the age of some of the basic-infrastructure at the enterprise. MILITARY PRODUCT LINE: This category lists products produced for the military. Again, this may provide an indication of the types of technology available. CIVILIAN PRODUCT LINE: This category lists products manufactured for civil use. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: Any known sophisticated facilities, equipment, or processes belonging to the enterprise are listed under this entry. CONVERSION PROJECTS: This entry identifies any conversion plans or efforts currently taking place at the enterprise. HUMAN RESOURCES SUPPORT: This will identify any human resources support (e.g., housing, medical, child care) that the facility provides its work force. U.S. industry should take careful note of the additional financial burden these may impose on joint ventures and be prepared to address this issue in negotiations. OTHER RELEVANT INFORMATION: This provides any additional relevant information. For example, if the facility is part of an association, this entry identifies the members of the association and provides the basic information (e.g., number of employees, product lines) for each. B. TRANSLANSLATION OF RUSSIAN ABBRIEVIATIONS Nil - Scientific Research Institute (G) NPO - (State) Scientific Production Association (G) NPP - (State) Scientific Production Enterprise AO - Joint Stock Company KB - Design Bureau ANTK - Aviation Scientific Technical Complex PO - Production Association U.S. Department of Commerce Julv l^Q^ RDBD 5 - St. Petersburg 1 -3 INDEX NAME OF ENTERPRISE PAGE ADMIRALTY SHIPYARD JOINT STOCK COMPANY 7 ALL-RUSSIA SCIENTIFIC RESEARCH AND DESIGN INSTITUTE OF ENERGY TECHNOLOGY (VNTPIET) 8 THE ALL-RUSSIA SCIENTIFIC RESEARCH INSTITUTE OF TRANSPORT MACHINERY BUILDING JOINT STOCK COMPANY (VNIITM) 9 ALL-RUSSIA SCIENTIFIC RESEARCH INSTITUTE OF RADIO EQUIPMENT (VNIIRA) (AUSRJRE) 10 ALL-RUSSIA SCIENTIFIC RESEARCH INSTITUTE OF TELEVISION (NIITV) 1 1 ALMAZ CENTRAL MARINE DESIGN BUREAU 12 ARSENAL DESIGN BUREAU 1 3 ARSENAL JOINT STOCK COMPANY 14 AVANGARD JOINT-STOCK COMPANY 15 BALTIC PLANT JOINT STOCK COMPANY 16 BALTSUDOPROEKT CENTRAL DESIGN BUREAU 17 CENTRAL DESIGN BUREAU OF MACHINE-BUILDING (TsKBM) 1 8 CENTRAL SCIENTIFIC RESEARCH INSTITUTE FOR MATERIALS (TsNIIM) 1 9 CENTRAL SCIENTIFIC RESEARCH INSTITUTE OF TECHNOLOGY OF SHIPBUILDING 20 DESIGN BUREAU OF SPECIAL MACHINE-BUILDING 2 1 DOMEN SCIENTIFIC RESEARCH INSTITUTE 22 ELECTROPRTBOR CENTRAL SCIENTIFIC RESEARCH INSTITUTE 22 ELECTROAVTOMATKA EXPERIMENTAL DESIGN BUREAU 23 GIDROPRIBOR CENTRAL SCIENTIFIC RESEARCH INSTITUTE 24 GRANIT CENTRAL SCIENTIFIC RESEARCH INSTITUTE 25 IMPULS SCIENTIFIC PRODUCTION ASSOCIATION 25 U.S. Department of Commerce RDBD 5 - St. Petersburg 1-4 July 1996 IZHORSKIY ZAVOD JOINT STOCK COMPANY 26 KALININ PLANT STATE PRODUCTION ASSOCIATION 28 KIROV PLANT JOINT STOCK COMPANY 29 KLMOV PLANT SCIENTIFIC PRODUCTION ENTERPRISE 30 KRASNAYA ZARYA STATE PRODUCTION ASSOCIATION 32 KRASNAYA ZARYA SCIENTIFIC RESEARCH INSTITUTE OF ELECTROTECHNICAL SUPPLIES 33 KRASNOZNAMENETZ STATE SCIENTIFIC PRODUCTION ENTERPRISE 33 KRYLOV CENTRAL SCIENTIFIC RESEARCH INSTITUTE 34 LENINETS HOLDING CONCERN, JOINT STOCK COMPANY 3 5 LENINGRAD OPTICAL-MECHANICAL ASSOCIATION (LOMO) 36 LENINGRAD SEVERNYY ZAVOD PLANT PRODUCTION ASSOCIATION 37 MAGNETON JOINT STOCK COMPANY 38 NEVSKOYE DESIGN BUREAU, JOINT STOCK COMPANY (Nevsky) 39 OBUKHO V STATE PLANT 3 9 OKEANPRTBOR SCIENTIFIC PRODUCTION ASSOCIATION 41 PETROZAVOD JOINT STOCK COMPANY 4 1 POISK SCIENTIFIC RESEARCH INSTITUTE 42 POPOV RESEARCH AND DEVELOPMENT INSTITUTE FOR RADIO BROADCASTING AND ACOUSTICS (NIIRPA) 43 POZITRON JOINT STOCK COMPANY 44 PRTMORSK SCIENTIFIC TECHNICAL CENTER OF THE RUSSIAN SPACE CORPORATION ENERGIYA 45 PROMETEY CENTRAL SCIENTIFIC RESEARCH INSTITUTE OF STRUCTURAL MATERIALS 46 PYROMETER JOINT STOCK COMPANY 47 RADAR SCIENTIFIC RESEARCH INSTITUTE 48 RADUGA JOINT STOCK COMPANY 49 f.S. Department of Commerce Juh DBD 5 - St. Petersburg 1-5 RAVENSTVO PRODUCTION ASSOCIATION 50 REDAN JOINT STOCK COMPANY 50 RUBIN CENTRAL MARINE TECHNOLOGY DESIGN BUREAU 51 RUSSIAN INSTITUTE OF HIGH-POWERED RADIO-BUILDING 52 SEVERNAYA VERF SHIPBUILDING PLANT 53 SEVERNOYE DESIGN BUREAU 54 SIGNAL SCIENTIFIC-INDUSTRIAL ENTERPRISE 54 SREDNENEVSKIY SHIPBUILDING PLANT (Middle Neva) 55 ST. PETERSBURG KRASNY OKTYABR MACHTNE-BUTLDrNG ENTERPRISE 56 SVETLANA JOINT-STOCK COMPANY 57 VAVTLOV STATE OPTICAL TNSTITUTE 59 VEKTOR SCIENTIFIC RESEARCH INSTITUTE 60 VYBORG ELECTRONIC EQUIPMENT- MAKING PLANT 6 1 D.V. YEFREMOV STATE SCIENTIFIC RESEARCH INSTITUTE OF ELECTROPHYSICAL APPARATUS 61 ZVEZDA JOINT STOCK COMPANY 62 U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 1-6 ST. PETERSBURG Enterprise name: ADMIRALTY SHIPYARD JOINT STOCK COMPANY LAST UPDATE: February 1996 ALTERNATE NAMES: Obedineniye "Admiralteyskiye Verfi", Leningradskoye Admiralteyskoye obedineniye (LAO), Admiralty Shipyards ADDRESS: 190008, St Petersburg, Russia Naberezhnaya Reki Fontanki, 203 Admiralty Shipyard Joint Stock Company Telephone: (011-7-812) 114-09-81, 114-87- 23, 216-88-31, 114-88-81, 216-72-49; 216- 76-07 (Commercial Director); 3 12-72-12 (General Director); Telex: 121202 RIF SU; Teletype: 121721 RIF; Fax: (011-7-812) 311-13-71 GENERAL OVERVIEW: The Admiralty yard in St. Petersburg is one of the oldest and largest shipyards in Russia. It was established as the New Admiralty yard in 1800, supplementing and soon replacing the Main Admiralty yard that had been founded in the center of the city a century earlier, and was transferred to its current location as the Admiralty Shipyard in 1908. It was a major builder of battleships in the 19th century and submarines and cruisers in the 20th. Since the mid-1950s its surface-ship facilities have specialized on large merchant ships, icebreakers, large rescue and salvage ships, fish-factory ships, floating dry docks, and a few naval auxiliaries (notably the three large missile range support ships of the Marshal Nedelin class). In 1966 the yard resumed submarine production with the delivery of a Victor I-class nuclear attack submarine, and production of Victor II and Victor Ill-class nuclear and Kilo-class diesel submarines followed. In 1972 Admiralty absorbed the Leningrad Shipbuilding and Mechanical Engineering (Sudomekh) yard, located on the original site of the New Admiralty yard and a specialist in submarine construction since the 1930s. The resulting entity was named the Leningrad Admiralty Association. In recent years, Admiralty has produced numerous specialized submersibles, including the civilian Sever-2 (1969), Tinro-2 (1972), Bentos (1975-1982), Tetis (1976), Osa, Argus, and Osmotr (1988) types, plus the naval Lima, Uniform, Xray, Beluga, and Paltus classes. Admiralty is still producing sea-going vessels, but it is also expanding into other technologies and products to support itself. PRIMARY BUSINESS: Shipbuilding; SIC Code: 2511, 2512, 2514, 2842, 3061, 3366, 3354, 3412, 3465, 3523, 3531, 3547, 3548, 3552,3567,3569,3714,3949 FORMER MINISTRY SUBORDINATION Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT Total: 10,000; Date: 1991 PRINCIPAL OFFICERS Vladimir L. Aleksandrov, General Director Yegor V. Kozlov, Commercial Director OWNERSHIP: Admiralty recently became a joint-stock company. YEAR ESTABLISHED 1704 MILITARY PRODUCT LINES Naval U.§. Department of Commerce RDBD 5 - St. Petersburg 1-7 Juh NO(> warships including nuclear and diesel- powered submarines and large auxiliaries. CIVIL PRODUCT LINES: Merchant ships; submersibles; ship components including deck installations, boilers, water piping, propellers, ductwork, electrical equipment, and stateroom furniture; agricultural equipment including animal husbandry machines, grain elevators, and fodder processing equipment; engineering and building maintenance services; motor vehicle components; industrial machinery and equipment including automated pneumatic systems, lubrication equipment, filtration devices, rubber technology items, electrical equipment, and servomechanisms; wood and metal office furniture; scrap and waste metals reprocessing; containers; fiber processing machines; non-household plastic products; medicinal materials including equipment and instruments; warm air heating and air- conditioning equipment; construction materials; consumer products including tourist and sports equipment, dyes and household chemicals, and household furniture. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: The yard's building ways can accommodate ships up 70,000 deadweight tons, 250 meters in length and 35 meters in width. CONVERSION PROJECTS: Admiralty is offering additional product lines, including blast furnaces and steel mill equipment, rolling mill machinery, welding apparatus, metal stampings, aluminum extruded products, non-wire steel springs, measuring and controlling devices, metal barrels, drums and pails, as well as reconstituted wood products. U.S. Department of Commerce RDBD 5 - St. Petersburg HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION N/A Enterprise name: ALL-RUSSIA SCIENTIFIC RESEARCH AND DESIGN INSTITUTE OF ENERGY TECHNOLOGY (VNIPIET) LAST UPDATE: December 1995 ALTERNATE NAMES: Vserossiyskiy nauchno-issledovatelskiy i proektnyy institut energeticheskoy tekhnologii (VNIPIET); Ail-Union Design and Scientific Research Institute of Complex Power Engineering ADDRESS 197228, St. Petersburg, Russia Ulitsa Savushkina, 82 Tel.: (011-7-812) 239-1491 (Gen. Director); (812) 239-1991 (Technical Manager); Telex: N/A; FAX: (011-7-812) 239-0393 GENERAL OVERVIEW VNIPIET prepares designs and project documentation for the construction, reconstruction, and technical refurbishment of atomic power stations. It is associated with many major projects in this field, including design of the containment sarcophagus for the damaged reactor at Chernobyl. It also does design work for radiochemical, metallurgical, mechanical, and instrument-engineering plants and performs research work on decontamination and removal of radioactive contamination and transportation of radioactive waste. PRIMARY BUSINESS: Nuclear July 1996 1-8 Equipment Design; SIC Code: 3462; HS#: N/A FORMER MINISTRY SUBORDN. Ministry of Medium Machine-Building APPROXIMATE EMPLOYMENT Total: 3,000; Date: 1992 PRINCIPAL OFFICERS: Edward K. Potyomkin, General Director Vladimir P. Soroka, Asst. to Gen. Manager OWNERSHIP: State-controlled YEAR ESTABLISHED: 1946 MILITARY PRODUCT LINES: Design of nuclear equipment. CIVTL PRODUCT LINES Design of nuclear reactors and power plants. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: Computers and computer- aided design equipment. CONVERSION PROJECTS: VNIPIET is exploring possible uses of navy reactors for civilian purposes and is designing a facility to store fissionable material. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO N/A Enterprise name: ALL-RUSSIA SCIENTIFIC RESEARCH INSTITUTE OF TRANSPORT MACHINE- BUILDING JOINT STOCK COMPANY LAST UPDATE: February 1996 ALTERNATE NAMES: VNIITM, VNlITransMash, Mobile Vehicle Engineering Institute. ADDRESS: 198323, St. Petersburg, Russia Ulitsa Zarechnaya, 2 Tel: (011-7-812) 135-9850, 135-9915; Fax : (011-7-812) 135-9837; 146-1618; E-Mail: N/A GENERAL OVERVIEW: This facility probably designed and built prototypes of tanks, including the T-80, for the Kirov Plant Production Association. It is currently involved in the conversion of tank technology for civilian applications. It is also the production facility for the Russian Mars rover, which is being developed in concert with the Babakin Center and the Institute for Space Research. PRIMARY BUSINESS: Tank design FORMER MINISTRY SUBORDN. : Ministry of the Defense Industry APPROXIMATE EMPLOYMENT: Total: 1269; Date: 1994. PRINCIPAL OFFICERS: Eduard K. Potemkin, General Director Vladimir P. Soroka, Assistant to Director OWNERSHIP: Joint stock company YEAR ESTABLISHED: 1930 KEY TECH./EQUIPT. EMPLOYED : N/A U.S. Department of Commerce RDBD 5 - St. Petersburg Jul\ W*> 1-9 MILITARY PRODUCT LINES: Proto- type tanks CIVTL PRODUCT LINES: Tracked transport vehicles, other commercial vehicles based on tank technology, remotely- controlled vehicles, " moonrovers," planetary surface vehicles. KEY TECH. & EQUIPT. EMPLOYED: N/A CONVERSION PROJECTS: The institute has convertedspace for the manufacture of log structures. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: VNIITransMash participated in a demonstration of a Russian Mars rover at the NASA Ames Center in early 1 993 in which the Russian hardware was sucessfully connected to American software. The institute is located in the Krasnoselskiy district at the southern edge of St. Petersburg and has set aside large amounts of production floorspace for use by interested sub-contractors. Enterprise name: ALL-RUSSIA SCIENTIFIC RESEARCH INSTITUTE OF RADIO EQUIPMENT (VNHRA) (AUSRIRE) LAST UPDATE: February 1996 ALTERNATE NAMES: Vserossiyskiy nauchnoissledovatelskiy institut radioapparaturiy, All-Union Scientific Research Institute of Radio Equipment (AUSRIRE), Vasileostrovskiy Radio U.S. Department of Commerce RDBD 5 - St. Petersburg 1-10 Apparatus Plant. ADDRESS 199106, St. Petersburg, Russia Shkiperskiy protok, 19 Tel: (011-7-812) 356-18-34; 351-17-07 (Chief Designer) 356-01-40, 351-13-15 (assoc. plant); Telex: 121320 NAUKA SU; Fax: (011-7-812) 352-37-04, 352-37-51 GENERAL OVERVIEW: VNIIRA develops radio beacons, air navigation systems, surveillance and landing radars, air traffic-control systems, and IFF systems. It also develops techniques to render these systems immune to electronic warfare. VNIIRA-designed equipment is in operation throughout the former Soviet Union as well as among former Soviet client states, such as Finland, Yugoslavia, Mongolia, Hungary, Germany and Czechoslovakia. VNIIRA has developed the only category-Ill approved microwave landing system (MLS) in the world. A five-channel Global Positioning System (GPS) receiver and a four-channel Global Navigation Satellite System (GLONASS) receiver developed by VNIIRA is being installed in Tu-204 and IL-1 14 airliners. VNIIRA's facilities include a production plant at its main St.Petersburg location and two subordinate design and production facilities in the Leningrad Oblast, one at Siverskaya and one at Zhigulyovsk. PRIMARY BUSINESS: Radio locating equipment; SIC Code: 3571, 3663, 3812 " FORMER MINISTRY SUBORDN. : Ministry of the Radio Industry APPROXIMATE EMPLOYMENT: Total: 4,000. Date: 1992. July 1996 PRINCIPAL OFFICERS: Gennadiy N. Gromov, Chief Dsgnr. General, Pavel N. Konokotin, Chief of Protocol Grp. OWNERSHIP: State-controlled YEAR ESTABLISHED 1946 MILITARY PRODUCT LINES Air navigation systems, pilot training systems, on-board instrumentation systems for the Russian space program, outfitted military trucks and vans with electronic equipment. CIVIL PRODUCT LINES: Weather radars, data processing equipment, automated air traffic control systems. KEY TECH./EQUIPT. EMPLOYED: VNIIRA is capable of fabricating digital processing devices utilizing gallium arsenide and semiconductor technology. CONVERSION PROJECTS GPS/GLONASS receivers, MLS systems HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION Eight directors of VNIIRA have joined together to form "Intra-Port," a small company that operates as a commercial front end to VNIIRA. Intra-Port is intended to help VNIIRA gain access to western technology and to help facilitate personnel matters. In 1990, VNIIRA began working with a U.S. avionics firm to prepare a proposal to the U.S. Federal Aviation Administration for the development of a microwave landing system. Enterprise name: ALL-RUSSIA SCIENTIFIC RESEARCH INSTITUTE OF TELEVISION (NnTV) LAST UPDATE: February 1996 ALTERNATE NAME: Beserossiskiy nauchnyy issledovateniy institut televideniye ADDRESS: 194021, St. Petersburg, Russia Ulitsa Politekhnicheskaya, 22 Tel: (812) 247-4167, 247-3892; Fax: (812) 550-6509, Telex: 121 140 VNIIT SU; Teletype: 322198 REKORD; E- mail: N/A; GENERAL OVERVIEW: The All-Russia Scientific Research Institute of Television is Russia's pre-eminent organization for Russia's development of the research and equipment for producing, transmitting, and receiving TV programs, and for image processing in general. PRIMARY BUSINESS : Television equipment. broadcasting studios: SIC Code: 3663,4833,4899,7812 FORMER MINISTRY SUBORDIN. : Ministry of the Communications Equipment Industry. APPROX. EMPLOYMENT: Total 3,000; Date: 1994. PRINCIPAL OFFICERS: MiKhail A. Grudinsky, Gerneral Director Vladimir V. Kovanko, Assistant to Director OWNERSHIP: 100 percent state-owned YEAR ESTABLISHED: 1 M; U.S. Department of Commerce RDBD 5 - St. Petersburg Julv 1** 1-11 MILITARY PRODUCT LINES: Imaging equipment for global weather forecasting networks, television equipment for use in space, ultra-violet and infra-red cameras, underwater imaging equipment, and ground stations for satellite communications. CIVIL PRODUCT LINES: Television cameras, video cameras, microphones and equipment, telescope imaging enhancement, TV broadcasting studios, Video measurement equipment; medical instruments and television systems for microsurgery. KEY TECH. /EQUIPT. EMPLOYED : Image processing, television and satellite commn. equipment; SIC Code: 3651, 3651, 3663,3671,3812,3826,4841 CONVERSION PROJECTS: N/A OTHER RELEVANT INFORMATION: Fifty percent of output goes to military and 50 percent to civilian production. The institute relies on 300 to 400 suppliers. It is the preeminent institute in Russia for imaging technology ranging from space stations to underwater exploration. In addition to the facility in St. Petersburg proper, the Institute has two other facilities: a 95,800 sq. meter facility in Vyborg consisting of a 25,000 sq. meter laboratory production building, 8500 sq. meter production building, a 25,400 sq. meter assembly and testing building and a 5,000 sq. meter industrial complex currently under construction; as well as a 15,700 sq. meter facility in the Krasnoselsky region consisting of two laboratory production buildings. The institute is interested in working with U.S. companies. However, it does not have a specific enterprise. At this time, it proposes offering a highly trained staff of scientists, engineers and technicians, industrial space, raw material and energy resources from its research division. In exchange, it seeks investment from U.S. companies which would include modernized equipment and expertise in manufacturing, production, marketing and essentially every aspect of trade with western partners. The joint cooperation may include assembly and tuning operations, consumer goods, television and video cameras, for personal and professional use, as well as complex television production equipment. Enterprise name: ALMAZ CENTRAL MARINE DESIGN BUREAU LAST UPDATE: December 1995 ALTERNATE NAMES: Tsentralnoye morskoye konstruktorskoye byuro (TsMKB) "Almaz," CMDB Almaz. ADDRESS 199155, St. Petersburg, Russia Ulitsa Uralskaya, 1 9 Tel.: (011-7-812) 350-2983, 359-0239; Telex: N/A; Fax: (011-7-812) 350-9430 GENERAL OVERVIEW Almaz is a leading designer of high-speed combat ships and boats, including dynamically supported craft (hydrofoils, hovercraft, and surface- effect ships). Almaz is the designer of the Dergach missile air cushion vehicle, the Nanuchka and Tarantul-class missile corvettes, the Matka-class missile hydrofoil, the Pauk-class anti-submarine warfare vessel, and the Pomornik-class air cushion vehicle. U.S. Department of Commerce RDBD 5 - St. Petersburg July 1996 1-12 PRIMARY BUSINESS: Shipbuilding; SIC Code: 373, 3731; HS#:N\A FORMER MINISTRY SUBORDN. Ministry of the Shipbuilding Industry APPROX. EMPLOYMENT Total 600; Date: 1992. PRINCIPAL OFFICER Alexander Vasilevich Shlyakhtenko, Head and Chief Designer OWNERSHIP: State-controlled YEAR ESTABLISHED 1940 MILITARY PRODUCT LINES: Designs for small surface combatants, including hydrofoil, air-cushion, and surface-effect ships. CIVIL PRODUCT LINES: Designs for fast passenger hydrofoils, air-cushion vehicles, surface effect ships, fast ferries, and others. KEY TECH./EQUIPT. EMPLOYED: N/A CONVERSION PROJECTS Almaz has developed surface-effect ships to be used as fast ferries for civilian use (Project"Mistral"). HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION The "Dergach," designed by Almaz, is the world's largest surface-effect ship. U.S. Department of Commerce RDBD 5 - St. Petersburg Enterprise name: ARSENAL DESIGN BUREAU LAST UPDATE: February 1996 ALTERNATE NAMES: KB Arsenal ADDRESS 195009, St. Petersburg, Russia Ulitsa Komsomola, 1/3 Tel: (011-7-812) 542-2973, 542-2252; Telex: 121608 ARS SU; Teletype: 122774 GROT; Fax: (01 1-7-812) 542-2060 GENERAL OVERVIEW The Arsenal Design Bureau is engaged in research and development and manufacturing of satellites and devices for space research and space- borne environment monitoring. It is collocated with the Arsenal Joint Stock Company . PRIMARY BUSINESS: Space, Artillery; SIC Code: 3585, 3663, 4899; HS#: N/A FORMER MINISTRY SUBORDN. Ministry of the Defense Industry APPROXIMATE EMPLOYMENT Total: 1,500; Date: 1996. PRINCIPAL OFFICERS Vitaliy Sychev, General Director Boris Ivanovich Poletayev, Director Yuriy Fedorovich Valov, Deputy Director Boris Ivanovich Poletayev, Chief Designer OWNERSHIP: State-controlled YEAR ESTABLISHED 1949 MILITARY PRODUCT LINES Satellites Job woo 1-13 CIVIL PRODUCT LINES Design of satellites for scientific research, in cooperation with the Russian Academy of Sciences. Design of commercial satellite projects, including "Taxi" (piggybacking a customer's payload on a launch vehicle carrying a primary payload); "Platform" (custom-made space stations for scientific and commercial use accomodating payloads of up to 4 tons); and "Precursor" (Predvestnik), a satellite system for earthquake forecasting and monitoring of seismic activity. KB "Arsenal" also develops large refrigerating systems for storage facilities and warehouses. KEY TECH./EQUIPT. EMPLOYED: Welding, high-vacuum processes, CAD- CAM, treatment and processing of light metals and light metal alloys. CONVERSION PROJECTS The Arsenal Design Bureau is focusing its conversion efforts on civilian satellite projects, satellite launch services, development of new types of internal combustion engines, camping stoves, electric samovars and propulsion systems. HUMAN RESOURCES SUPPORT Arsenal sponsors an in-house program for scientific and technical training of employees. ALTERNATE NAMES: PO "Arsenal," PO "Arsenal" imeni M. V. Frunze ADDRESS: 195009, St. Petersburg, Russia Ulitsa Komsomola, 1/3 Tel: (011-7-812) 542-28-46, 542-70-77; 542-36-30 (Deputy Director), 542-71-27 (Deputy General Director for Foreign Economic Ties); Telex: 121608 ARS SU; FAX: (011-7-812) 542-71-27; E-Mail: N/A GENERAL OVERVIEW: Historically, a major producer of artillery, the Arsenal Joint Stock Comapany also produces a variety of complex mechanical equipment, such as compressor stations, refrigeration and gas equipment, extrusion machines, and satellite platforms. It is collocated with the Arsenal Design Bureau. It is composed of 5 separate administrative entities: two civilian production operations, a military production operation, a technical support facility, and a commercial center. PRIMARY BUSINESS: Artillery; SIC Code: 3489, 3542, 3585, 3679; HS#: N/A FORMER MINISTRY SUBORDIN. : Ministry of the Defense Industry OTHER RELEVANT INFORMATION Arsenal has close links with the Russian aerospace industry. Enterprise name: ARSENAL JOINT STOCK COMPANY LAST UPDATE: February 1996 APPROXIMATE EMPLOYMENT Total: 8,000; Date: 1996. PRINCIPAL OFFICERS Vyacheslav G. Petrov, General Director, Vladimir I.Grigorieu, Deputy Director Mikhail A. Myslin, Deputy Director Aleksandr N. Chlennikov, Deputy Director Petr S. Kushnir, Deputy General Director, Foreign Economic Ties U.S. Department of Commerce RDBD 5 - St. Petersburg July 1996 1-14 OWNERSHIP: Joint Stock Company LAST UPDATE: December 1995 YEAR ESTABLISHED 1719 MILITARY PRODUCT LINES 1 10mm naval guns. CrvTL PRODUCT LINES High-purity liquid nitrogen production equipment, autonomous thermal power plants with Stirling-type engines, special-purpose mobile screw compressors, extrusion equiptment, hydraulic pumps, precision machine tools & toys. KEY TECH./EQUIPT. EMPLOYED: Welding, high vacuum processes, CAD- CAM, treatment and processing of light metals and light metal alloys. CONVERSION PROJECTS The plant is expanding its production of air compressors, medical instruments, and household appliances, and is introducing the production of refrigeration equipment. It produces gas pistols used for self-defense. Only 45 percent of Arsenal's orders come from the defense sector. HUMAN RESOURCES SUPPORT Arsenal sponsors an in-house program for scientific & tech. training of employees, and supports kindergartens & medical clinics. OTHER RELEVANT INFORMATION Arsenal has a large capacity for further growth and owns tracts of land outside of St. Petersburg. It is collocated with the Arsenal Design Bureau. Enterprise name: AVANGARD JOINT- STOCK COMPANY U.S. Department of Commerce - RDBD 5 - St. Petersburg 1-15 ALTERNATE NAMES: Aktsionnernoye Obshcnestvo "Avangard", AO "Avangard", NPO "Avangard", ADDRESS 195271, St. Petersburg, Russia Kondratyevskiy prospekt, 72 Tel: (011-7-812) 540-1550, 540-1955, 543- 9545, 544-6901; Fax: (011-7-812) 540- 1844; Telex: 121431 NTS SU; Teletype: 122299 GNOM; E-mail: N/A GENERAL OVERVIEW: Avangard was the leading enterprise of the former Ministry of the Radio Industry, developing and manufacturing high precision special electronic components for communications systems, satellites, and military rockets. Avangard consists of two research institutes and two production plants which develop and produce components for electronics, processing equipment, and instrumentation for the instrument-making industry. PRIMARY BUSINESS: Electronics; SIC Code: 3663, 3674, 3679, 3695, 3812, 3823, 3825, 3829 FORMER MINISTRY SUBORDN. Ministry of the Radio Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS Vakhtang P. Koveshnikov. General Director Konstantin B. Sukhomlin, Dir Econ Don Anatoly I. Artemiev, Chief Engineer OWNERSHIP: Joint-Stock Company Jul} YEAR ESTABLISHED: 1948 MILITARY PRODUCT LINES: High precision electronic components for military communication systems, satellites, & missile systems. CIVIL PRODUCT LINES: Laser optical video disks, all-wave TV channel selectors, & electronic components for civil applications. KEY TECHNOLOGY/EQUIPMENT EMPLOYED: N/A doctors of science and more than 60 candidates of science. Enterprise name: BALTIC PLANT JOINT STOCK COMPANY LAST UPDATE: February 1996 ALTERNATE NAMES: Aktsionnernoye Obshsnestvo "Baltiyskiy zavod," AO Baltiyskiy zavod, Baltic Shipyard, Baltic Works, Baltiyskiy zavod imeni Sergo Ordzhonikidze CONVERSION PROJECTS Avangard Joint Stock Company has proposed joint engineering development of a method for annealing structural defects in semiconductor or dielectric crystals using acoustical oscillations at room temperature. They have stated that they have carried out basic research work and obtained samples of a structure that had a low defect concentration level, and that the technique makes possible annealing crystal defects virtually on every stage of a device fabrication process, allowing a noise level decrease, higher charge carrier mobility, and improved amplification of a device. Avangard has also developed microelectronic chemical sensors for environmental protection applications and lavistor semiconductor instruments with enhanced radiation resistance for work in high radiation zones. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: Avangard has been involved in a joint project with 27 Russian and German research institutes and companies to develop new gas sensors. The Avangard staff includes 9 ADDRESS 199026, St. Petersburg, Russia Kosaya Liniya, 16 Telephone: (011-7-812) 217-95-80, 217-93- 06, 217-93-00, 217-93-75, 217-10-79 (Director); Telex: 121141 BSHL SU; Fax: (01 1-7-812) 217-22-96, 217-29-06; E-Mail: N/A; Teletype: 122581 VINT GENERAL OVERVIEW: The Baltic Plant is one of the largest shipyards in the former Soviet Union. It is capable of building merchant ships up to 45,000 deadweight tons and nuclear powered cruisers. The Baltic Plant Production Association was formed in 1989 by the merger of the Baltic Shipyard and a special design bureau for boiler construction. It became a joint-stock company in 1 993 . PRIMARY BUSINESS: Shipbuilding; SIC Code: 3443, 3556, 3585, 3589, 3731; HS #: N/A FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry U.S. Department of Commerce RDBD 5 - St. Petersburg 1-16 July 1996 APPROXIMATE EMPLOYMENT: Total: 12,000; Date: 1990. PRINCIPAL OFFICERS Oleg B. Shulyakovskiy, General Director E.I. Koshelev, Deputy General Director Y.I. Lopatin, Deputy Manager a founder of the Transokeanik Joint-Stock Society along with the Nevskoye Design Bureau. Transokeanik's role is to establish a maritime passenger line between St. Petersburg and New York, primarily aimed at businessmen. OWNERSHIP: Joint-stock. The sale of shares began in March 1 993 . Enterprise name: BALTSUDOPROEKT CENTRAL DESIGN BUREAU YEAR ESTABLISHED 1856 LAST UPDATE: December 1995 MILITARY PRODUCT LINES Kirov- class nuclear-powered cruisers. CIVIL PRODUCT LINES Merchant ships; chemical tankers; nuclear-powered icebreakers; quick-freezing units; cooking boilers; sausage-making machines. The shipyard has presented designs for 40,000 dwt double hull tankers. KEY TECH./EQUIPT. EMPLOYED The shipyard has two open slipways: one of 250m x 30m and a second of 375m x 40.5m. The latter is one of the largest in the former USSR. The yard also has shops for castings and production of ship components such as large shafts and propellers. Transport and storage of steel sections not suited for units of more than approximately 80 metric tons. Outfitting quay served by four cranes of 50 mt capacity; another 1 1 cranes of 50 mt capacity serve the two open building ways. ALTERNATE NAMES TsKB BALTSUDOPROEKT, Tsentralnoye Konstruktorskoye Byuro "Baltsudoproekt" ADDRESS 190068, St. Petersburg, Russia, Kanal Griboyedova, 90 Tel: (011-7-812) 310-34-23, 314-21-75, 3 14- 11 -71; Fax: (01 1-7-8 12) 3 14-00-95 Telex: 121345 PTB SU FOR VATMAN E-mail: N/A GENERAL OVERVIEW The enterprise designs various types of civilian and specialized military ships. PRIMARY BUSINESS: Ship Design; SIC Code: 8711 FORMER MINISTRY SI BORDN. Ministry of the Shipbuilding industry CONVERSION PROJECTS Merchant ships; chemical tankers. APPROXIMATE EMPLOYMENT Total: 750; Date: 1994 HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION The Baltic Plant Joint Stock Company is also U.S. Department of Commerce RDBD 5 - St. Petersburg PRINCIPAL OFFICERS NikolayN. Rodionov, Director Valery N. Kruglov, Technical Director Juh 1-17 OWNERSHIP: State-owned YEAR ESTABLISHED 1925 MILITARY PRODUCT LINES: Design of special-purpose ships for the Navy. CIVIL PRODUCTS LINES Design of fishing and cargo ships; container ships, passenger ferries and tugboats. KEY TECH. / EQUIPMENT EMPLOYED: N/A. CONVERSION PROJECTS: Development of floating diesel-electric power-generating stations. OTHER RELEVANT INFORMATION: Ships designed by Baltsudoproekt are being built at different shipyards in St. Petersburg, Kerch (Ukraine), and other cities in Russia. Design Bureau of Machine-Building (TsKBM) is responsible for the design, research, and prototype development of industrial gas centrifuges for uranium isotope separation. It is involved in gaseous diffusion technology and thermionics, and is also developing thermionic space-based nuclear power reactors in the "Topaz" series. PRIMARY BUSINESS: Nuclear fuel processing & reactor design; SIC Code: 2421, 2426, 3429, 3563, 3567, 3675, 3821 FORMER MINISTRY SUBORDN. Ministry of Medium Machine-Building APPROXIMATE EMPLOYMENT Total: 1,500-2,000; Date: 1991. PRINCIPAL OFFICERS: Vladimir P. Nikitin, Chief Yevgeniy Sokolov, First Deputy Director OWNERSHIP: State-controlled Enterprise name: CENTRAL DESIGN BUREAU OF MACHINE-BUILDING (TsKBM) LAST UPDATE: February 1996 ALTERNATE NAMES: Tsentralnoye konstruktorskoye byuro mashinostroyeniya (TsKBM) ADDRESS 195272, St. Petersburg, Russia Krasnogvardeyskaya Ploshchad, 3 Telephone:; N/A; Fax: N/A; Telex: N/A; Teletype: 122817 DELTA; E-Mail: N/A GENERAL OVERVIEW The Central YEAR ESTABLISHED: 1945 MILITARY PRODUCT LINES: Prototypes of gas centrifuges for uranium isotope separation, TEC-3 portable 1 .2 megawatt nuclear power reactors, fuel loading machines for RBMK reactors (high- power channel reactors), equipment for uranium enrichment, uranium and uranium products, and nuclear submarine reactor cooling pumps. CIVTL PRODUCT LINES: Turbo- molecular pumps for the chemical industry, microelectronic components, and furniture. KEY TECH./EQUIPT. EMPLOYED In 1991 TsKBM was authorized to use Western U.S. Department of Commerce RDBD 5 - St. Petersburg 1-18 July 1996 technology and equipment in its manufacturing processes. CONVERSION PROJECTS: TsKBM began about 1989 to produce turbo- molecular pumps for the chemical industry, microelectronics components, a deep vacuum system to ensure the purity of microelectronics materials produced at the facility and at other plants throughout Russia, and furniture. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION TsKBM, together with the Kurchatov Atomic Energy Institute, Moscow, and the Luch Scientific Production Association, Podolsk, developed the "Topaz-2", a small nuclear reactor capable of powering various types of spacecraft for periods of up to five years. The program was stopped for lack of funds, but the International Scientific Production Corporation, a U.S. firm, has proposed a joint project to use Topaz systems in civilian space programs. 271-2288 (Deputy Director); Fax: (01 1-7- 812) 110-7660, Telex: 121345 PTB SU; Teletype: N/A; E-mail: dmitryicy, crim.spb.su GENERAL OVERVIEW The Central Scientific Research Institute of Materials conducts research and development of a wide variety of materials, including steels, alloys, and composites, for military weapon programs and space programs. PRIMARY BUSINESS materials research; SIC Code: 2821, 3479, 3531, 3532, 3556, 3679 FORMER MINISTRY SUBORDN. Ministry of the Defense Industry APPROXIMATE EMPLOYMENT Total: 300; Date: 1994 PRINCIPAL OFFICERS Boris Ivanovich Poletayev, Director Yuri Fedorovich Valov, Deputy Director OWNERSHIP: state-owned. YEAR ESTABLISHED 1912 Enterprise name: CENTRAL SCIENTIFIC RESEARCH INSTITUTE FOR MATERIALS (TsNHM) LAST UPDATE: February 1996 ALTERNATE NAMES: Tsentralniy Naucnyy Issledovatelniy Institut Materialov ADDRESS 191014, St. Petersburg, Russia Ultisa Paradraya, 8 Tel.: (011-7-812) 271-4972 (Gen. Director), U.S. Department of Commerce RDBD 5 - St. Petersburg MILITARY PRODUCT LINES Development of aircraft, missiles, and space- related products from steel alloys, and composite materials and equipment for their production. CIVIL PRODUCT LINES Development of high-strenuth structural steels and alloys; high-temperature alloys, including superalloys; materials with special properties, including damping, magnetic properties, low coefficient of thermal expansion, and shape memory effects, ceramic structural and electrical insulating materials, ceramic Jul\ 1 ooo 1-19 resistant to molten metal; metal, ceramic, carbon, and poymer matrix composites; tool steels and alloys, including powder metallurgy materials, for cutting tools and dies; protective, wear-resistant electrolytic, thermally sprayed. Plasma vacuum coatings; and various welding processes including underwater welding equipment, KEY TECH./EQUIPT. EMPLOYED: Technologies and equipment for production of materials for special purpose equipment (machinery). CONVERSION PROJECT N/A HUMAN RESOURCES: N/A OTHER RELEVANT INFORMATION: The principal mission of the Institute has been the development of materials and process technology aimed at the defense and space industry. The institute is now focussing its resources on establishing joint development programs with private sector companies in Russia and Western countries. 0522 (international dept.), 186-1600; Fax: (011-7-812) 186-0459; E-mail: N/A GENERAL OVERVIEW: The Central Scientific Research Institute of the Technology of Shipbuilding is Russia's principal research and development center for advanced materials, metallurgical processes, and fabricating techniques for the shipbuilding industry in Russia. It launches and tests ships. PRIMARY BUSINESS: Development of shipbuilding techniques. It also designs special purpose equipment for shipyards and other industries; SIC Code: 3731, 8711 FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: Total: 2,000; Date: December 1995. PRINCIPAL OFFICERS: Vladmir D. Gorbach, Director OWNERSHIP: State-owned Enterprise name: CENTRAL SCIENTIFIC RESEARCH INSTITUTE OF TECHNOLOGY OF SHIPBUILDING LAST UPDATE: February 1996 YEAR ESTABLISHED: 1939 MILITARY PRODUCT LINES: Develops advanced materials and production technology, including production equipment, for ships and submarines. ALTERNATE NAME: TsNII of the Technology of Shipbuilding, Central Scientific Research Institute of Shipbuilding ADDRESS: 198095, St. Petersburg, Russia Ulitsa Promyshlennaya, 7 Telephone: (011-7-812) 186-0401, 186- U.S. Department of Commerce RDBD 5 - St. Petersburg CIVTL PRODUCT LINES: Techniques for analyzing and reducing vibration and noise in industrial and residential buildings. It assembles equipment and mechanisms for ships. It does interior decoration for ships. KEY TECH./EQUEPT. EMPLOYED: Laboratories for the study of vibration and July 1996 1-20 sound. design; SIC Code: 871 1; HS#: N/A CONVERSION PROJECTS: N/A OTHER REVELANT INFORMATION: The Institute was formerly part of the RITM Scientific Production Association. It is interested in developing new projects in software, specialized lighting, automation, vibration reduction and noise abatement areas. The enterprise is willing to organize and hold international and regional exhibitions, symposiums and seminars. The enterprise is a founder of several scientific societies. FORMER MINISTRY SUBORDN. Ministry of General Machine-Building APPROXIMATE EMPLOYMENT Total: 2,000; Date: 1994. PRINCIPAL OFFICERS Nikolay A. Trofimov, Constr. Dsgn. Mgr. Vladimir G. Doblenkov, Chief Engineer OWNERSHIP: State-controlled YEAR ESTABLISHED 1947 Enterprise name: DESIGN BUREAU FOR SPECIAL MACHINE-BUILDING MILITARY PRODUCT LINES Engineering for large-scale military structures. LAST UPDATE: December 1995 ALT. NAMES: Konstruktorskoye byuro spetsialnogo mashinostroyeniya (KBSM) ADDRESS: 194223, St Petersburg, Russia Lesnoy Prospekt, 64 Tel. : (011-7-812) 245-5113 (Construction Design Manager), 245-5133 (Technical Manager); 245-3133, 542-8392; Telex: 321223 PIK; Fax: 245-3618; E-Mail: N/A GENERAL OVERVIEW KBSM undertakes scientific research and design work for various machines, mechanisms, and mechanical engineering equipment, including large load-bearing structures requiring heavy-duty shock-absorbing or high-pressure pneumatic systems. CIVIL PRODUCT LINES Shock- absorbing systems for nuclear power plants and other large civil engineering structures. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: Pneumatic high-pressure sealed cylinders, computer-assisted calculations, slow-motion filming of high- speed processes, production control technology for dynamic load structures CONVERSION PROJECTS Protection of installations against earthquakes. The active and passive shock-absorbing systems developed at KBSM are based upon a number of inventions and are competitive with Japanese systems. Planning is being undertaken for earthquake protection in California and Hawaii. HUMAN RESOURCES SUPPORT N/A PRIMARY BUSINESS: Engineering. OTHER RELEVANT INFO \ \ U.S. Department of Commerce RDBD 5 - St. Petersburg Jul\ 1-21 for radar and space communications. Enterprise Name: DOMEN SCIENTIFIC RESEARCH INSTITUTE LAST UPDATE: February 1996 ALTERNATE NAMES: Nil "Domen", Domain Research Institute. ADDRESS: 196084 St. Petersburg, Russia Ulitsa Chernigovskaya, 8 CIVIL PRODUCT LINES: Opto- electronics, development and production of prototypes of piezoelectric devices and electromechanical filters, indicators, coils, ferrites and magneto-dielectics, electric connectors, switching and wiring articles. KEY TECH. /EQUEPT. EMPLOYED N/A CONVERSION PROJECTS: N/A Telephone: (011-7-812), 294-7143, 294- 8033, 297-2334; Telex: 121014 FERCO SU; Teletype: N/A; Fax: (01 1-7-812) 298-3497 GENERAL OVERVIEW: Nil Domen is well known for its ferrite materials, components, and devices, which are important elements of radioelectronic systems such as radars, radioastronomy, telecommunications, and of many others. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION This Research Institute was formerly part of the Ferrite Scientific Production Association. Enterprise name: ELEKTROPRIBOR CENTRAL SCIENTIFIC RESEARCH INSTITUTE PRIMARY BUSINESS: Electronics; SIC Code: 3264, 3643, 3679, 3824 FORMER MINISTRY SUBORDN. Ministry of the Electronics Industry LAST UPDATE: February 1996 ALTERNATE NAMES: Tsentralniy nauchnyy issledovazelskiy institute "Elecktropribor", TsNII Elektropribor. APPROXIMATE EMPLOYMENT: N/A PRINCIPAL OFFICERS: Valeriy V. Filippov, Director General OWNERSHIP: N/A YEAR ESTABLISHED 1969 ADDRESS: 197046, St. Petersburg, Russia, Ulitsa Malaya Posadskaya, 30 Tel: (011-7-812) 232-5915, 232-3118 (plant); Fax: (011-7-812) 232-3376, 232- 7467 (Plant), E-Mail: N/A; Telex: N/A; Teletype: N/A MILITARY PRODUCT LINES: Microwave ferrite materials and components, microwave and millimeter wave equipment U.S. Department of Commerce RDBD 5 - St. Petersburg 1-22 GENERAL OVERVIEW: The Elektropribor Central Scientific Research Institute is a highly regarded organization July 1996 specializing in the design and manufacture of gyroscopic systems for naval and commercial vessels. It has an experimental production plant. PRIMARY BUSINESS: Gyroscope development; SIC Code: 3511, 3577, 3625, 3679,3728,3731 FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: Total: 3,200 employees (including "Azimut- Electropribor" Experimental Production Plant); Date: December 1995 PRINCIPAL OFFICERS: Vladimir G. Peshekhonov, Director OWNERSHIP: State-owned YEAR ESTABLISHED: 1927 MILITARY PRODUCT LINES: Design of gyroscopic systems for submarines and surface vessels. CIVIL PRODUCT LINES: Design of low power wind generators, medical equipment and ship stabilizers for satellite TV antennae and scanners. LAST UPDATE: February 1996 ALT. NAMES: Electoavtromatika OKB ADDRESS 198095, St. Petersburg, Russia Ulitsa Marshala Govorova, 40 Tel: (011-7-812) 252-1398; Fax: (011-7- 812) 252-3817; Telex: N/A, E-mail: N/A. GENERAL OVERVIEW Elektroavtomatika is involved in the development of electronic systems for Russian military and civil aircraft. Specific types of products produced by Elektroavtomatika include include digital displays, flight management systems (for civil, military and space applications), airborne computers for civil and military applications, airborne instrumentation and simulators, as well as the software used in various computers and systems. PRIMARY BUSINESS: Electronics; SIC Code: 3571, 3679, 3728, 3812, 7371 FORMER MINISTRY SUBORDN. Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT Total: 1,000; Date: December 1995 KEY TECH./EQUIPT. EMPLOYED: N/A PRINCIPAL OFFICERS Pavel P. Paramonov, Director CONVERSION PROJECTS: N/A OWNERSHIP: State-controlled HUMAN RESOURCES SUPPORT: N/A YEAR ESTABLISHED 1946 Enterprise^'ELEKTROAVTOMATlKA' EXPERIMENTAL DESIGN BUREAU MILITARY PRODUCT LINES Digital displays, flight management systems, airborne computers, missile guidance U.S. Department of Commerce RDBD 5 - St. Petersburg Jul\ 1-23 systems and software. CIVIL PRODUCT LINES: Digital displays, flight management systems, airborne computers, simulator systems and software. KEY TECH./EQUIPT. EMPLOYED: N/A CONVERSION PROJECTS The principal approach of Elektroavtomatika in the conversion area is the commercial application for its current products including foreign customers. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVENT INFORMATION Elektroavtomatika has formed two joint ventures: ~ in 1 993 with Astronautics Corporation and Kearfott Guidance (USA). AKE is involved in design and development of control and display units, flight instrument systems, and flight management systems for civil aircraft; - in 1995 with CATIC (CHINA) LC Ltd., is engaged in airborne computer production, soft ware design, commercial electronics design and production. Enterprise name: GIDROPRIBOR CENTRAL SCIENTIFIC RESEARCH INSTITUTE LAST UPDATE: February 1996 ALTERNATE NAMES: Tsentralniy nauchnyy issledovatelniy institut "Gidropribor", TsNII Gidropribor ADDRESS U.S. Department of Commerce RDBD 5 - St. Petersburg 1-24 194175, St. Petersburg, Russia Bolshoi Sampsonievsky Prospect, 24 Tel: (011-7-812) 248-1032, 248-2884, 248- 2703; Fax:: (011-7-812) 542-4663; Telex: n/a; Teletype: 121338 MORE; E-Mail: gidroprb@ sovam. com GENERAL OVERVIEW: Gidropribor is a leading institute in the development of types of marine underwater techniques. The main activity of the institute is fundamental research in the areas of hydro-gas dynamics, hydro-acoustics, hydro-mechanics, management and stabilization of automatic systems. PRIMARY BUSINESS: Underwater equipment development; SIC Code: 3569, 3731,3812 FORMER MINISTRY SUBORDN. Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: Total: 2,300; Date: 1995. PRINCIPAL OFFICERS: Oleg Alekseyevich Ivanov, Director Leonid I. Voronin, Assistant Director OWNERSHIP: State-owned YEAR ESTABLISHED 1944 MILITARY PRODUCT LINES: Underwater naval weapons CIVIL PRODUCT LINES Hydro-acoustic equipment, mobile underwater automatic station, self-contained ecological monitoring stations, wireless systems for hydro-acoustic control of underwaterdevices and vessels, July 1996 medical and agricultural equipment. KEY TECH./EQUIPT. EMPLOYED Underwater acoustic R&D, underwater robotics. Vladimir A. Nikoltsev, Director OWNERSHIP: state-owned YEAR ESTABLISHED: 1921 CONVERSION PROJECTS N/A. Enterprise name: GRANIT CENTRAL SCIENTIFIC RESEARCH INSTITUTE LAST UPDATE: February 1996 ALTERNATE NAMES: TsNII Granit, Tsentralniy nauchno-issledovatelskiy institut "Granit" ADDRESS: 191014, St. Petersburg, Russia Ulitsa Gospitalnaya, 3 Tel: (011-7-812)271-6756 Fax: (01 1-7-8 12) 274-63 3 9 E- Mail: [email protected] GENERAL OVERVIEW: Granit is a research institute specializing in naval-related electronic control systems. PRODUCT SPECIALTY: Electronic control and detection systems; SIC Code: 3625,3761,3825,3826,3829 FORMER MINISTRY SUBORDINATION : Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: Total: 1,500; Date: 1994. PRINCIPAL OFFICERS: U.S. Department of Commerce ■ RDBD 5 - St. Petersburg MILITARY PRODUCT LINES: Development of missile guidance systems, ship-based fire-control systems and non- acoustic means of ship detection. CIVTL PRODUCT LINES: Cardiac monitoring equipment, automobile communication systems. KEY TECH./ EQUEPT. EMPLOYED N/A HUMAN RESOURCES SUPPORT: N/A Enterprise name: IMPULS SCIENTIFIC PRODUCTION ASSOCIATION LAST UPDATE: February 1996 ALTERNATE NAMES: NPO Impulse ADDRESS: 195220 St. Petersburg, Russia Ulitsa Obruchevykh, 1 Tel: (011-7812) 243-9765, 530-9343 (Experimental Plant); Fax : (01 1-7-812) 243- 9642, (Expl. Plant), E- Mail: N/A; telex 121033 IMPL; Teletype: 321205 BARK GENERAL OVERVIEW: The Impuls Scientific Production Association develops and produces combat control systems for missile- and space-launch complexes, as well as information processing systems It includes an experimental plant and an Jul\ W^o 1-25 experimental design bureau. PRIMARY BUSINESS: Combat control systems. FORMER MINISTRY SUBORDIN. : Ministry of General Machine Building APPROXIMATE EMPLOYMENT: Total: 4,161; Date: 1994. PRINCIPAL OFFICERS: Boris G. Mikhailov, Director Vyacheslav V. Onishchenko, Head of the Foreign Relations Department. OWNERSHIP: state-owned YEAR ESTABLISHED: 1960 MILITARY PRODUCT LINES: Combat control systems and information ciphering equipment. CIVIL PRODUCT LINES: Microwave ovens. KEY TECH. / EQUIPT. EMPLOYED : N/A CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: N/A Enterprise name: IZHORSKIY ZAVOD JOINT STOCK COMPANY LAST UPDATE: December 1995 ALTERNATE NAMES: Aktsionnernoye U.S. Department of Commerce RDBD 5 - St. Petersburg obshchestvo "Izhorskiy Zavod", AO Izhorskiy Zavod; Izhora Plant, Izhora Plant Joint Stock Company ADDRESS: 189630, St. Petersburg (Kolpino), Russia Prospekt Lenina, 1 Tel: (01 1-7-8 12) 48 1-8 11 0,48 1-8 102 (Gen. Director), 481-81 10, 481-8150 (Director of Foreign Trade Firm); Telex: 121435 IZHORA SU; Teletype: 321613 MARTEN; Fax:(01 1-7-812) 463-9269 (Director of Foreign Trade Firm) GENERAL OVERVD2W: The Izhora Plant was established in 1722 by the Russian Navy on the Izhora River as a sawmill. Today its joint stock company is one of the leading metallurgical and machine-building enterprises in Russia with 20 separate plants and departments. The company is one of three major builders of nuclear reactors in the former Soviet Union, and it makes heavy machinery and numerous other products for both the military and civilian sectors. The main facility, located in the St. Petersburg suburb of Kolpino, consisted in 1991 of four large divisions and one smaller division. A foreign trade firm was created in 1987 to market the firm's products in international markets, and the firm currently exports to more than 20 countries. Five design bureaus are also part of the company. Orders for military products declined drastically by the early 1 990s and the plant's production lines for armored vehicle components were reportedly idle in early 1993. The Izhora Plant is a founding member of the St. Petersburg Military Industrial Corporation, set up in mid- 1992 to earn capital for conversion of defense plants to civilian production. July 1996 1-26 PRIMARY BUSINESS: Heavy machines, nuclear reactors; SIC Code: 3325, 3369, 3443, 3463, 3469, 3511, 3531, 3599, 3621, 3634 FORMER MINISTRY SUBORDN. Ministry of Heavy Machine-Building APPROXIMATE EMPLOYMENT Total: 22,616; Date: 1993. •j" * "> PRINCIPAL OFFICERS Vladimir G. Vasilyev, General Director Deonisii D. Stepanyuk, Director of Foreign Trade Firm Alexander I. Baranov, Deputy Director of Foreign Trade Firm OWNERSHIP: Joint stock. Share of ownership: 75% state, 25% private. YEAR ESTABLISHED: 1722 MILITARY PRODUCT LINES Armor; armored vehicle hulls; tank turrets; tank track wheel assemblies; nuclear reactors for submarines; titanium for submarine hulls. CIVIL PRODUCT LINES: Articles rolled, hammered and pressed from titanium alloys; 300 varieties of steel castings; propeller shafts; excavators and other large machines; equipment for mineral oil handling; reactors, generators and other equipment for atomic power stations; turbine and turbine generator sets and rotors; automobile mufflers; kitchen utensils; fabricated plate work. KEY TECH./EQUIPT. EMPLOYED The plant has facilities for hammer forging and pressing, rolling steel pipes and plates, electroplating, and thermal treating. Technology for vacuum welding of hard U.S. Department of Commerce RDBD 5 - St. Petersburg 1-27 alloys and steel was installed in 1988. The Izhora Plant is also constructing a 125-ton capacity electric arc melting facility, which is to be completed in mid- to late 1993. Special vehicles are used to transport radioactive isotopes. CONVERSION PROJECTS Storage tanks for various types of fuel began to be produced following the decline in military orders in the late 1980s, as well as containers for nuclear waste. Izhora also plans to increase its steel production during the 1990s. HUMAN RESOURCES SUPPORT Medical center, rest house, sports complex, culture club, tourist sanitary center, and 1 2 hostels. OTHER RELEVANT INFORMATION: The Izhoraskiy Zavod Joint Stock Company has an agreement with a U.S. firm for joint venture production of pipe molds and other products. It also has two similar joint ventures, known as IZMET, with the French firms SIBCO and SOCONET. The French steel company SADEFA is marketing IZMET's products in the West. Izhora is also reportedly involved in a joint venture with the U.S. firm Bechtel and the South Korean firm Lucky Development Company to build an electronics plant to produce home appliances and a business complex consisting of a hotel, apartments, and a shopping center. The joint venture also involves development of chemical and lumbering plants in St. Petersburg, as well as other basic industries in Russia. The firm has a contract with a university in the U.S. for a management training exchange program It also has an agreement for management consulting services with Bechtel Civil Since July l^ the late 1980s, Izhorskiy has been part of the Leningrad (St. Petersburg) Energomash Energy Corporation, a State Interbranch Production Association (GMPO) that consolidates as many as 1 5 enterprises in the field of power equipment, including nuclear reactor production facilities. Enterprise name: KALININ PLANT STATE PRODUCTION ASSOCIATION LAST UPDATE: December 1995 ALTERNATE NAMES: PO Zavod imeni M.I. Kalinina, ADDRESS: 199155, St. Petersburg, Russia Ulitsa Uralskaya, 1 Tel: (01 1-7-812) 350-1 176, 350-8704, 350- 0243 (Commercial Director), 350-1354 (Director); Telex: N/A; Fax: (011-7-812) 352-5735,351-8752 GENERAL OVERVIEW The Kalinin Plant State Production Association produces munitions for the military. It is now involved in large scale conversion from military to civil production. PRIMARY BUSINESS: Munitions; SIC Code: 2353, 3431, 3534, 3552, 3559, 3563, 3629, 3634, 3651, 3679, 7371, 7372, 7382 FORMER MINISTRY SUBORDN. Ministry of the Defense Industry APPROXIMATE EMPLOYMENT: Total: 5,100; Date: 1993. PRINCIPAL OFFICERS: U.S. Department of Commerce RDBD 5 - St. Petersburg 1-28 Alexsandr V. Zakharov, Director Sergei V. Sazonkin, Commercial Director Aleksandr G. Sergeyev, Chief Designer, Consumer Goods Department OWNERSHIP: State-controlled YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Munitions CIVIL PRODUCT LINES: Computer programming services and prepackaged software, environmental controls, medical instruments, radio receivers, televisions (including the "Kvarts" black and white set), home audio equipment (such as the "Static" stereo system, the "Kvazar" cassette player, the "Forum" bass-booster amplifier, and other stereo cassette players), general purpose communications equipment, tape recorders, TEMP-1 portable tire-inflation compressor, pneumatic-hydraulic car jacks, automotive compressors, sanitation apparatus, household appliances (including "Stezhok" sewing machine, cutlery, fans, and other household implements), haberdashery articles, satellite television dishes, battery chargers, electric razors, curling irons, and electronic home security alarms. KEY TECH./EQUIPT. EMPLOYED: N/A CONVERSION PROJECTS At an exhibition of medical products, Kalinin proposed the production of taxnonometers for experimental automatic pressure- measuring devices. HUMAN RESOURCES SUPPORT Kalinin owns several buildings located along My 1996 an adjacent riverfront and is considering converting them into an apartment-hotel complex to be owned by the facility. OTHER RELEVANT INFORMATION One of Kalinin's manufacturing facilities - located on its grounds - is a semi- independent privatized entity whose production is exclusively sold to Kalinin in exchange for manufacturing space. Almost all of the assembly components for Kalinin's civil product lines, including plastic molding, electric motors, and electronics, are built on- site. Production floor space totals about 76,000 square meters. Enterprise name: KIROV PLANT JOINT STOCK COMPANY LAST UPDATE: February 1996 ALTERNATE NAMES: Aktsionnernoye obshchestvo "Kirovskiy zavod," AO Kirovskiy zavod, Kirovskiy zavodProduction Association; Key Facilities: Kirovskiy mashinostroitelnyy i metallurgicheskiy zavod (Kirovskiy Znamya Oktyabr zavod, Kirov Plant), St. Petersburg;, Gorelovo; Transmash Plant, Tikhvin. ADDRESS 198097, St. Petersburg, Russia Prospekt Stachek, 47 187500, Tikhvin, Russia (Leningrad Oblast) Transmash Plant Tel: (011-7-812), 183-8434, 183-8001, 184- 3553, 292-9558, 316-9558, 671-1933, 1-35- 42 (Transmash Plant); Telex: 121416 POWER SU, 121416 LADOGA, 322326 U.S. Department of Commerce RDBD 5 - St. Petersburg 1-29 DIZEL (Transmash Plant), Fax: (01 1-7-812) 252-04-16; E-mail: N/A GENERAL OVERVIEW The Kirov Plant Joint Stock Company is a major producer of tractors and steam turbines for both the military and civilian markets. It has also designed and produced tanks for the military. It is a vertically-integrated association that also produces its own steel, its own sheet metal, and its own forgings and stampings The main component of the Kirov Plant Production Association is the Kirov Plant proper, the largest and oldest industrial complex in St. Petersburg. Other components of the Kirov Plant Production Association include and the Transmash Plant in Tikhvin. The Kirov Plant ceased producing tanks in November 1991. It continues to produce turbines, tractors, construction machinery, and rolled steel. Tikhvin produces castings, as well as machinery, spare parts, and consumer goods. PRIMARY BUSINESS: Heavy vehicles, turbines; SIC: 3316, 3462,3511, 3519, 3531, 3537; HS #: N/A FORMER MINISTRY SUBORDN. Ministry of the Defense Industry EMPLOYMENT: 50,000; Date: 1991. PRINCIPAL OFFICERS Pyotr G. Semenenko, President Aleksandr V. Kruglov, Director of International Relations Company, Yevgeny Sergeyevich Malyshev, General Director, Transmash Plant OWNERSHIP: Joint-stock company Employees acquired 75 percentofthe stock and 10 percent of the stock was sold to Job i°*> foreign investors. YEAR ESTABLISHED: 1801, as the Putilov Works/Foundry. MILITARY PRODUCT LINES: T-80 tanks, PION self-propelled artillery gun, turbines for naval surface vessels and submarines, silent reduction gears for submarines. CIVIL PRODUCT LINES: Turbines for electric power generation; circulating pumps for nuclear power stations; industrial and agricultural tractors ("KIROVETS"-K-700 and K-701M); construction machinery, including bulldozers, cranes, front-end loaders, and canal digging machinery; automated packaging machinery for agriculture; machines for the mining industry, road construction, and the repair of oil wells and oil pipelines; consumer goods including kitchen appliances (juice pressers, meat grinders), window locks, and children's swings. KEY TECH./EQUIPMT. EMPLOYED Numerically-controlled machine tools. CONVERSION PROJECTS: Conversion activity includes large-scale production of household appliances and other consumer goods. An effort is underway to produce mini-tractors and attachments (K-20, using 3 5 horsepower engines from Germany) for small farms. Kirov is beginning production of municipal service vehicles. It produces annually about 21,000 225- and 300-HP tractors, 600,000 meat grinders, and 400,000 juice pressers. HUMAN RESOURCES SUPPORT: Employee housing, recreation centers, sport U.S. Department of Commerce RDBD 5 - St. Petersburg 1-30 centers, a sanitarium, and a subsidiary agricultural farm. OTHER RELEVANT INFORMATION: Kirov has approached Ford, Volkswagen, and General Motors in an aggressive effort to obtain a Western partner for joint automobile production. An automotive joint-venture with Mitsubishi of Japan may already exist in facilities at Gorelovo that were built, but never used, for tank assembly. Production of small multi-purpose tractors through a joint venture has also been considered. Production of jeeps through a joint venture is also being considered. Kirov is also studying the possibility of wheelchair production. In 1993, Kirov entered into a joint venture with the German firm Landteknik AG of Schonebeck for production of "Maral" grain combines, a German design suitable for use in Russian fields. Enterprise name: KLIMOV PLANT SCIENTIFIC PRODUCTION ENTERPRISE LAST UPDATE: December 1995 ALTERNATE NAMES: NPP "Zavod imeni V. Ya. Klimova," Leningradskoye NPO imeni V. Ya. Klimova, Klimov Design Bureau, Klimov Corporation, Izotov Engine Design Bureau, Klimov Machine-Building Plant ADDRESS 194100, St. Petersburg, Russia Kantemirovskaya Ulitsa, 1 Tel: (01 1-7-812) 245-3366, 245-01 15, 245- 4315; Telex: N/A; Fax: (01 1-7-812) 245- Julyl996 4329; E-mail: N/A GENERAL OVERVIEW: Founded by V Ya. Klimov, the design bureau moved to its present location after World War II. It was also known for a time as the Izotov Design Bureau after S.P. Izotov, chief designer following Klimov. After Izotov's death in 1983 the design bureau returned to its original name. The bureau is co-located with its own experimental prototype plant, the Klimov Machine-Building Plant, and together they form the Klimov Scientific Production Association. Klimov engines are serially produced at the Krasnyy Oktyabr' Plant. In early 1992 the Klimov Design Bureau was for the first time referred to as the Klimov Corporation, suggesting it has been reorganized into a joint-stock company. The Klimov Enterprise is vigorously pursuing the export market and joint- ventures with Western aerospace companies. PRIMARY BUSINESS: Aircraft engines; SIC Code: 3724; HS #: N/A MILITARY PRODUCT LINES: Engines for MiG-29 Fulcrum fighter aircraft and Mi- 8, Mi-17, and Mi-24 military helicopters. CrVTL PRODUCT LINES Engines for the II- 114 civil transports; converted helicopter engines; machinery for producing footwear KEY TECH./EQUIPT. EMPLOYED Metallurgy and machining technology. The design bureau developed the capability to machine difficult-to-work metals such as cobalt-tungsten alloys using its own high- speed cutting tools. CONVERSION PROJECTS Aggressively pursuing business arrangements with foreign aerospace companies to promote exports and develop joint-ventures. Includes contacts with Snecma France for joint development of a powerplant for new jet trainer for Russia; with China for the use of a Klimov derivative engine for use on Chinese transports; and with South Korea, for a ground-based power station. FORMER MINISTRY SUBORDN. Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT Total: 3,492; Date: 1992. PRINCIPAL OFFICERS Aleksandr A. Sarkisov, Director General Valentin V. Starovoytnikov, Chief Designer. Pyotr S. Izotov, Director of Marketing Gennady N. Yezhov, Dir. for Econ. and Fin. A. P. Listratov, Technical Director OWNERSHIP: Joint-stock company YEAR ESTABLISHED: 1944 HUMAN RESOURCES SUPPORT Maintained a sanitarium in the Crimea; health-care center on-site. OTHER RELEVANT INFORMATION The Klimov has an engine test facility in the Shuvalova District of St. Petersburg Klimov has an agreement with Snecma to prepare a technical proposal for a military trainer engine. Klimov is discussing an agreement with the Chinese to provide a derivative of Klimov's TV7-1 17 engine Klimov has formed a joint venture with South Korea to develop a 1.5-megawatt ground-based electrical power and heating station. Klimov has a two-part agreement with South Africa to define a new business U.S. Department of Commerce RDBD 5 - St. Petersburg Jul\ 1-31 aircraft within the framework of a consortium and to retrofit Klimov's RD-33 engine on Western-built combat aircraft. It was announced in July, 1993, that Pratt & Whitney Canada and the Klimov Corporation had formed a joint-venture to develop and produce a range of small gas turbine engines (turboprop, turboshaft and turbofan) for civil aircraft in the CIS and other markets. Enterprise name: KRASNAYA ZARYA STATE PRODUCTION ASSOCIATION FORMER MINISTRY SUBORDN. : Ministry of the Radio Industry APPROXIMATE EMPLOYMENT: N/A PRINCIPAL OFFICERS: Vladimir K. Yevseyev, General Director Vladimir G. Musorin, Deputy Director General for Economics Aleksandr Y. Kukuy, Deputy Dir. General, Mikhail M. Lebedey, Deputy Dir. General, A.Makarov, Commercial Director OWNERSHIP: State-controlled LAST UPDATE: December 1995 YEAR ESTABLISHED: Pre-World War II ALTERNATE NAMES Proizvodstvennoye obedineniye "Krasnaya Zarya", LNPO Krasnaya Zarya, NPO Krasnaya Zarya, Krasnaya Zarya Plant. Key facility: Delta Research Institute ADDRESS: 194044, St.Petersburg, Russia B. Samsonevskiy Prospekt, 60 Tel: (011-7-812) 245-3738, 245-3339, 245- 8953, 245-1 172; Telex: 121592, Teletype: 321306 TABLO; Fax: (011-7-812) 245- 6450; E-Mail: N/A GENERAL OVERVIEW: The Krasnaya Zarya State Production Association is the largest producer of telecommunications equipment in Russia, specializing in the production of telephone equipment and exchanges. PRIMARY BUSINESS: Communications equipment; SIC Code: 3429, 3661, 3679, 3825, 3949 MILITARY PRODUCT LINES Telephone apparatus, secure communications systems. CIVIL PRODUCT LINES: Telephones and telephone equipment, automatic telephone exchanges, signalling apparatus, locks, automobile anti-theft devices, instruments for power supply control systems, soldering irons, fishing reels. KEY TECH. /EQUEPT. EMPLOYED : N/A CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION: The current address, B. Samsonevskiy Prospekt, formerly was known as Prospekt Karla Marksa. Alternative addresses for Krasnaya Zarya are Kantemirovskaya Ulitsa 4, 6, and 8. Kantemirovskaya Ulitsa 4 is also the address of the Scientific Research Institute of Electrotechnical Devices U.S. Department of Commerce RDBD 5 - St. Petersburg July 1996 1-32 (NIIETU), at one time part of the Krasnaya Zarya association but separated from it in 1992. Krasnaya Zarya, under the former Soviet Union, established a joint venture (1991) with Italiana Telecomunicazioni (ITALTEL) SPA., called Telezarya, to produce digital telephone exchanges in Russia. Enterprise name: KRASNAYA ZARYA SCIENTIFIC RESEARCH INSTITUTE OF ELECTROTECHNICAL EQUIPMENT (NIIETU) LAST UPDATE: March 1996 ALTERNATE NAMES: Nauchno- issledovatelniy institut elektrotekhnicheskikh ustroystv ADDRESS: 197342, St. Petersburg, Russia Ulitsa Kantemirovskaya, 4 Tel: (011-7-812) 245-3738, 245-5069; Fax: (011-7-812) 245-6752; Teletype: 122280 PRIZMA; Telex: N/A; E- Mail: N/A PRIMARY BUSINESS: Telecommunications equipment. FORMER MINISTRY SUBORDN. : Ministry of the Radio Industry MILITARY PRODUCT LINES: Development of telecommunications equipment. CIVIL PRODUCT LINES: Automatic and semi-automatic telephone stations, automated special communications systems for transmitting data, equipment for operating loudspeaker systems, and switchboards. KEY TECH. /EQUIPT. EMPLOYED : N/A CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: The Krasnaya Zarya Scientific Production Association was broken up in January 1992 and NIIETU became independent. Enterprise name: KRASNOZNAMENETS STATE SCIENTIFIC PRODUCTION ENTERPRISE LAST UPDATE: December 1995 ALT. NAMES: NPO "Red Banner" APPROXIMATE EMPLOYMENT: Total: 1,954; Date 1994. PRINCIPAL OFFICERS: Oleg G. Myasnikov, Director OWNERSHIP: State-owned YEAR ESTABLISHED: N/A U.S. Department of Commerce RDBD 5 - St. Petersburg ADDRESS: 195043, St. Petersburg, Russia Chelyabinskaya Street, 95 Tel: (011-7-812) 527-6057, 527-51 (01 1-7-812) 527-3696;E-mail: N/A ::. Fax GENERAL OVERVIEW: Production facility tor munitions equipment and ignition Julv lOOo 1-33 devices. PRODUCT SPECIALTY: Explosives and munitions for the coal, oil, gas and metal industries. FORMER MINISTRY SUBORDN. : Ministry of Machine Building. APPROXIMATE EMPLOYMENT: Total: 3,000; Date: 1994. foreign firms. Potential diversification programs include production of insulation materials for residential and commercial housing construction, production of cinder blocks for house and cottage construction, production of wooden doors and window frames for housing construction and production of environmentally-safe batteries. The facility covers territory of 150 hectares, with roads for automobile and rail access, and has substantial warehouse facilities. PRINCIPAL OFFICERS: Nikolai Igorov, Director Alexander Shirshov, Vice Director OWNERSHIP: 100 percent state-owned. YEAR ESTABLISHED: 1843 KEY TECH./EQUIPT. EMPLOYED: N/A Enterprise name: KRYLOV CENTRAL SCIENTD7IC RESEARCH INSTITUTE LAST UPDATE: December 1995 ALTERNATE NAMES: TsNII imeni akademika A.N. Krylova, Krylov Shipbuilding Research Institute MILITARY PRODUCT LINES Munitions Equipment and Ignition Devices. CIVIL PRODUCT LINES: Construction Drills, Photo Lamps and Casings, Indoor Electric Heaters, Polyethylene and Computers. ADDRESS: 196158 St. Petersburg, Russia Moskovskoye Shosse, 44 Tel: (011-7-812) 291-9606, 291-9665; Telex: 121467 CNEPR SU; Fax: (011-7- 812) 127-9595, 127-9632; E-mail: N/A KEY TECH. / EQUIPT. EMPLOYED: Ignitions, Electronics, Bushing Presses, and Large Presses. GENERAL OVERVIEW A maritime research institute involved in hydrodynamic and testing of ship designs. CONVERSION PROJECTS: Production of environmentally-safe insulating material and batteries. OTHER RELEVANT INFORMATION: Red Banner is interested in partially privatizing its operations and has commenced negotiations with a number of U.S. Department of Commerce RDBD 5 - St. Petersburg PRIMARY BUSINESS: Shipbuilding; SIC Code: 373; HS#: N/A FORMER MINISTRY SUBORDN. Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: Total: 10,000; Date: 1975. 1-34 July 1996 PRINCIPAL OFFICERS Vadim.Y. Spiro, First Deputy. Dir. General OWNERSHIP: State-controlled YEAR ESTABLISHED: 1894 MILITARY PRODUCT LINES: Performs testing of full-scale and model warship and submarine designs, both model testing and full-scale testing. CIVIL PRODUCT LINES Testing of merchant ship designs. KEY TECH./EQUIPT. EMPLOYED: Deep water and shallow water tow tanks; high speed tow tanks; basins for seakeeping, maneuverability and cavitation tests; ice model basin; cavitation basin; wind and cavitation tunnels; acoustic measurement tanks; tensile testing machines; fatigue and vibration testing machines; hydraulics and propulsion plant testing facilities; equipment and ranges for full scale ship tests. CONVERSION PROJECTS Underground nuclear power stations; nuclear power plant and ship design; acoustical and mechanical testing. Enterprise name: LENINETS HOLDING CONCERN, JOINT-STOCK COMPANY LAST UPDATE: December 1995 ALTERNATE NAMES: Kontsern "Leninets," NPK Leninets, Leninets Scientific Production Concern, Leninets Central Scientific Production Association, NPO Leninets, Leninets Association, U.S. Department of Commerce RDBD 5 - St. Petersburg 1-35 Leninets Holding Company. ADDRESS 196066 St. Petersburg, Russia Moskovskiy Prospekt, 212 Tel: (011-7-812)293-6878,291-8141; Telex: 122246 RADUGA, 121377; Fax: (011-7-812), 299-9041, 291-8138; E-mail: N/A GENERAL OVERVIEW Leninets produces a variety of airborne radars and other radioelectronic equipment as well as a variety of consumer goods. The huge concern includes 16 factories, 10 research organizations, and 50 small enterprises. PRIMARY BUSINESS: Aeronautical Radars; SIC Code: 3812; HS#: N/A FORMER MINISTRY SUBORDN. Ministry of the Radio Industry APPROXIMATE EMPLOYMENT: N/A PRINCIPAL OFFICERS Anatoly A. Turchak, President/Dir. General. Leonid G. Golovach, Vice President Ramutis Y. Bagdonas, Vice President OWNERSHIP: Joint Stock Company YEAR ESTABLISHED 1974 MILITARY PRODUCT LINES Aircraft radars; aircraft computers. CIVIL PRODUCT LINES Aircraft radars for a variety of uses (weather and navigation, land survey, search and rescue) household appliances (refrigerators, razors, kitchen appliances); automotive electronics, radio Julv loot, receiving and sound reproduction equipment; and satellite television equipment; toys. CONVERSION PROJECTS Diagnostic, preventive and rehabilitative medical equipt; household appliances. Leninets organized the Konvent Concern to create the Industrial Engineering Center for Conversion in the Leningrad Region. Leninets is involved in a joint venture with the Gillette Company to build a factory to produce shaving products. HUMAN RESOURCES SUPPORT The company has an agro-industrial complex, an education center, hotels, and recreation centers. OTHER RELEVANT INFORMATION: In 1991 about 35 percent of Leninets1 output was military, with plans to reduce that share to 25 percent. An experimental plant belonging to Leninets is located in Gatchina. In 1991, the company worked with the Western auditing company Coopers and Lybrand tochange to a joint-stock company. Enterprise name: LENINGRAD OPTICAL-MECHANICAL ASSOCIATION (LOMO) LAST UPDATE: December 1995 ALTERNATE NAMES: LOMO Joint, AO LOMO, St. Petersburg Optical Mechanical Association, Leningradskoye Optiko- mekhanicheskoye obedineniye imeni V.I. Lenina (LOMO). ADDRESS: 194044, St. Petersburg, Russia Chugunnaya Ulitsa, 20 Tel: (011-7-812) 242-5001, 248-5201, 248- 5009; Telex:321421 LOMO Teletype: 321421 OKULYAR; Fax: (011-7-812) 542- 1839, 542-1065, 542-2269, 542-5322; E- mail: N/A GENERAL OVERVIEW This association is the oldest and largest producer of optics in Russia and produces a vast array of world- class optical systems for the military and the civil economy, including high-precision optical-mechanical instruments, lenses, mirrors, prisms, and diffraction gratings. LOMO consists mainly of a central design bureau and four production plants: the former State Optical Mechanical Plant (GOMZ) at 20 Chugunnaya Ulitsa; the former Progress Plant on Mikhaylovskava Ulitsa; the branch plant on Pridorozhnaya Alleya; and the Kinap Motion Picture Equipment Plant at 8 Zhukova Ulitsa. PRIMARY BUSINESS: Optical instruments & lenses; SIC Code: 3827; HS#: N/A FORMER MINISTRY SUBORDN. Ministry of the Defense Industry APPROXIMATE EMPLOYMENT Total: 20,000; Date: 1992 PRINCIPAL OFFICERS Iliya Isofirovich Klebanov, General Director Nikolay Yu. Shustov, Technical Director Arkady S. Kobitsky, Marketing Director . Sergey V. Shnurov, Director of LOMO Foreign Trade Company Valeriy Krukov, Director (economics) OWNERSHIP: Joint-stock, open-type YEAR ESTABLISHED: Association U.S. Department of Commerce RDBD 5 - St. Petersburg 1-36 July 1996 founded 1964; the State Optical Mechanical Plant (GOMZ) established in the 1930s. MILITARY PRODUCT LINES Infrared homing heads; laser rangefinders; naval detection equipment; periscopes; gun sights. CIVIL PRODUCT LINES: Microscopes; cameras; precision measuring instruments; spectrometers; lenses for TV cameras; medical equipment; fiber optic endoscopes; large special purpose optical systems; other optical-mechanical equipment; astronomical equipment; telescopes; studio sound technological equipment and amplifiers. KEY TECH. /EQUIPT. EMPLOYED: Industrial robots, including die-stamping robots and cold stamping robots; a flexible production module; diamond cutting tools; aluminum alloys die-casting machines; plastic molding; production of cutting and measuring tools. CONVERSION PROJECTS Joint venture with a U.S. company to build analytic spectrometers. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION LOMO was one of the founders in 1990 of the Leningrad Business Forum, an association for foreign economic cooperation. Enterprise name: LENINGRAD SEVERNYY ZAVOD PRODUCTION ASSOCIATION ALTERNATE NAMES: PO Leningradskiy Severnyy zavod ADDRESS 197228, St. Petersburg, Russia Kolomyazhskiy Prospekt, 1 0 Tel: (011-7-812) 246-19-65; Telex: N/A; Fax: (01 1-7-812) 394-1 1-79, 293-74-26 GENERAL OVERVIEW The Severnyy Plant Production Association is in transition from missile production to the production of civil products. Since the 1960's Severnyy has produced surface-to-air missiles. Earlier it had produced fixed wing aircraft and helicopters. Currently, the association produces a variety of civil products including enameling machines, metal furniture, and other consumer goods. PRIMARY BUSINESS: Guided Missiles; SIC Code: 2298, 2399, 2514, 2522, 3421, 3444, 3465, 3469, 3631, 3914, 3949 FORMER MINISTRY SUBORDN. : Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT Total: 10,000; Date: 1968. PRINCIPAL OFFICERS German Gordymova, Director OWNERSHIP: State-controlled YEAR ESTABLISHED Pre-W odd War D MILITARY PRODUCT LINES Surfece- to-air missiles. LAST UPDATE: December 1995 U.S. Department of Commerce RDBD 5 - St. Petersburg CIVIL PRODUCT LINES 1 So Binding machines, metal & enamel-coated tableware. July 19! 1-37 metal furniture, household lighting fixtures, kitchen gas stoves, fishing accessories, ferrous & non-ferrous scrap metals. KEY TECH./EQUIPT. EMPLOYED: Titanium welding CONVERSION PROJECTS N/A HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION: The member plants of the Severnyy Zavod Production Association are the two manufacturing facilities, located several miles apart in St. Petersburg, that for many years functioned as the Severnyy Plant. Enterprise name: MAGNETON JOINT STOCK COMPANY FORMER MINISTRY SUBORDN. : Ministry of the Electronics Industry APPROX. EMPLOYMENT: Total: 1 ,500; Date: 1994. PRINCIPAL OFFICERS: Anatoly Firsenkov, Director Lyubov Ivanova, Chief financial officer Vladimir M. Ishutkin, Chief Engineer OWNERSHIP: Joint Stock Company. Twenty percent of the shares are state- owned, 51% are owned by the employees, and 29% are owned by private investment companies. YEAR ESTABLISHED: 1945 KEY TECH./EQPT. EMPLOYED: N/A LAST UPDATE: March 1996 ALTERNATE NAMES: Aktsionnernoye obshchestuo "Magneton", AO Magneton ADDRESS: 194223, Russia, St. Petersburg, Ulitsa Kurchatova, 9 Tel: (011-7-812) 247-5551, 247-5589, Fax: (01 1-7-812) 552-0305; E- Mail: N/A GENERAL OVERVIEW: Formerly part of the Ferrite Production Association, Magneton is a major producer of ferrites and related products such as magnets. PRIMARY BUSINESS: Electronics PRODUCT SPECIALTY: Components made from strontium and barium ferrites. U.S. Department of Commerce RDBD 5 - St. Petersburg 1-38 MILITARY PRODUCT LINES: Ferrite magnetic materials and microwave devices based on these materials, as well as radar absorbing materials. CIVTL PRODUCT LINES: Dynamic heads for loudspeakers, mini TVs, magnetic locks for furniture, TV beam control systems and transformers, HF choking coils for video and TV equipment, radio components, magnets (isotopic and anisotropic) from strontium and barium ferrites. PRIMARY BUSINESS: Production of magnets from ferrites; SIC Code: 3264 3651, 3677, 3695, 3826 CONVERSION PROJECTS: Design and production of consumer electronics. HUMAN RESOURCES SUPPORT: N/A July 1996 OTHER RELEVANT INFORMATION: The facility relies on 120 suppliers for its production. Enterprise name: NEVSKOYE PLANNING AND DESIGN BUREAU JOINT STOCK COMPANY LAST UPDATE: December 1995 ALTERNATE NAME: PKB Nevskoye, Nevsky Design Bureau ADDRESS: 199106, St. Petersburg, Russia Galerny Proezd, 3 Tel: (011-7-812) 356-0566, 352-0289, 352- 0364; Fax: (011-7-812) 352-0740; E-mail: N/A GENERAL OVERVIEW: The Nevskoye Planning and Design bureau is Russia's primary designer of large surface vessels. PRODUCT SPECIALTY: Design of large naval vessels. YEAR ESTABLISHED: 1931 MILITARY PRODUCT LINES: Design of heavy aircraft carriers & large landing ships. CIVIL PRODUCT LINES: Tankers, bulk cargo carriers and car carriers transporting ships. KEY TECH. /EQUIPT. EMPLOYED : N/A CONVERSION PROJECTS: N/A OTHER RELEVANT INFORMATION: Nevskoye is the oldest intitution for naval architecture in Russia. Enterprise name: OBUKHOV STATE PLANT LAST UPDATE: December 1995 ALTERNATE NAMES: Zavod Obukhovskiy, Bolshevik Plant Production Association, PO Zavod Bolshevik FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry. APPROX. EMPLOYMENT: 603; Date 1994 PRINCIPAL OFFICERS: Lev V. Belov, Director Yury M. Varfolomeyev, Deputy Director Boris Y. Akimenko, Deputy Director for Economics OWNERSHIP: Joint Stock Company. U.S. Department of Commerce RDBD 5 - St. Petersburg 1-39 ADDRESS 193012, St. Petersburg, Russia Obukhovskiy Oborony Prospekt, 120 Obukhovskiy Plant Production Association Tel: (011-7-812) 267-9929, 267-9573. 267- 9523, 267-9860; 262-09-65 (General Director); 267-96-40 (Chief Engineer); Telex: 121345 PTB SU KOMPLEX. 321067; Fax: (011-7-812)262-4277; GENERAL OVERVIEW: The Obukfaov State Plant specializes in the fields of metallurgy and heavy machine building and k> Jim an established producer of missile launching equipment and naval guns. The plant was founded in 1863 by Russian metallurgist Pavel Obukhov, who originated the use of cast steel for the manufacture of cannon barrels. The Obukhov plant was the site of the "Obukhov Defense of 1901," where workers clashed with Tsarist forces. The plant changed its name in 1992 from the Bolshevik Plant back to its original name, Obukhov. PRIMARY BUSINESS: Missile launchers, artillery; SIC Code: 3325, 3341, 3366, 3369, 3523, 3533, 3547, 3556, 3589, 3663, 3842 FORMER MINISTRY SUBORDN .: Ministry of General Machine-Building APPROXIMATE EMPLOYMENT: Total: 10,000; Date: 1993. PRINCIPAL OFFICERS: Anatoliy F. Vashenko, General Director Alexander B. Poretskiy, Chief Engineer Valeriy S. Pyshkin, Chief, Foreign Economic Relations Department OWNERSHIP: State-controlled cameras, gas and oil extraction equipment. KEY TECH./EQUIPT. EMPLOYED: Open-hearth furnaces, hammer forging and pressing equipment (up to 3200 ton capacity), equipment to manufacture cog wheels, vertical electroplating tanks (up to 10 meter capacity), numerically controlled metal lathes. CONVERSION PROJECTS: Obukhov is developing a pipe foundry and rolling mill complex. The plant produces wheelchairs for the foreign and domestic markets with a United States company, which supplied modern production equipment and training. Obukhov is working with another US firm to produce oil and gas extraction equipment. Also, Obukhov has a licensing agreement to assemble irons for the Italian appliance firm "Delonghi" and is the largest producer of household irons in Russia. Obukhov also has converted to the production of "Positron" television sets and "Lomo" cameras. HUMAN RESOURCES SUPPORT The plant has a hospital, a nursery school, a sports complex, and two summer resort facilities in southern Russia. YEAR ESTABLISHED: 1863 MILITARY PRODUCT LINES: Missile launching equipment; ICBM missile silos; ground equipment associated with missile systems; submarine missile launch tubes; naval guns; submarine antenna arrays. OTHER RELEVANT INFORMATION Obukhov is attempting to convert to additional civilian production, including agricultural equipment, medical sterilization equipment, and machinery for environmental cleanups, the latter with potential investment by the Finnish government. CIVIL PRODUCT LINES: Ferrous and non-ferrous castings used in the electrotechnical, chemical and shipbuilding industries, fork-lift trucks, wheelchairs, irons and other home appliances, television sets, U.S. Department of Commerce RDBD 5 - St. Petersburg July 1996 1-40 Enterprise name: OKEANPRIBOR SCIENTIFIC PRODUCTION ASSOCIATION LAST UPDATE: December 1995 ALTERNATE NAMES: "Okeanpribor". Nauchno-proizvodstvennoye, NPO Okeanpribor ADDRESS: 197376, St. Petersburg, Russia Chkolovsky Prospect, 46 Tel: (011-7-812)232-2105 or 235-2551, Fax: (011-7-812) 235-3991, E- mail: N/A; Telex: 121345 PTB; Teletype: N/A GENERAL OVERVIEW: The Okeanpribor Scientific Production Association is a major research and production facility engaged in the development of hydroacoustic systems and equipment for both submarines and commercial vessels. MILITARY PRODUCT LINES: Hydroacoustic systems and equipment, antennas and transformers for submarines and naval vessels. CIVIL PRODUCT LINES: Audio equipment and magnetic discs. PRIMARY TECH. AND EQUIPMENT: Hydroacoustic technology CONVERSION PROJECTS: N/A OTHER RELEVANT INFORMATION: Okeanpribor states that all production for the military is dual purpose and has commercial applications. They are in the early stage of conversion and would like to work with foreign partners. Enterprise name: PETROZAVOD JOINT STOCK COMPANY LAST UPDATE: December 1995 PRIMARY BUSINESS: Hydroacoustic systems FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: 10,000; Date: 1994 PRINCIPAL OFFICERS: Dmitry D. Mironov, Director Alia N. Kalyaeva, Foreign Relations Dept OWNERSHIP: Joint-stock company YEAR ESTABLISHED: N/A U.S. Department of Commerce RDBD 5 - St. Petersburg ALTERNATE NAMES: Aktsionnernoye obshchestvo "Petrozavod", AO Petrozavod. Leningradskiy Petrozavod, Okha (Okhtenskiy) Shipyard, Okhtinskaya Verf ADDRESS 195272, St. Petersburg, Russia Krasnogvardeyskaya ploshchad (Square). 2 Tel: (011-7-812)224-1260, 224-1226, 224- 90-01, 224-1779; Telex: 121396 CEDR1 SU; Teletype: 121329 FERMA; Fax (011-7- 812) 224-2249, 293-45-15, E-Mail N/A GENERAL OVERVIEW Petrozavod one of the oldest shipbuilding establishments in Russia, lost its building ways in the 1970s Juh 19! 1-41 and was converted to manufacture machine tools and components for use in other shipyards. It was founded at the junction of the Okhta and Neva rivers in 1721 as a roofing shingle works, a settlement for serfs working at the Main Admiralty Yard, and a small shipyard. It was enlarged in 1806 and, as the Okhta Admiralty, built sailing frigates and ships of the time. It was leased to private shipbuilders between 1872 and 1913 for construction of smaller ships, and in 1931 it became a specialist in the construction of tugs. During the 1950s and 1960s it built 63 oceangoing tugs of the "Goliat" class (known in the West as the Okhtenskiy class) and harbour tugs of the "Peredovik" (Sidehole) and "Prometey" (Saka) classes. After the yard was rebuilt in the late 1970s it has manufactured sophisticated shipbuilding production line equipment. Early projects include mechanization of the assembly and welding production lines at the Vyborg Shipbuilding Plant and the construction of a unit for assembly and welding of large hull sections at the Zhdanov Shipbuilding Plant in Leningrad. PRINCIPAL OFFICERS: Leonard S. Shelest, General Director M. Pavlov, Deputy Director Victor N. Ignatiev, Chief Engineer OWNERSHIP: Joint Stock Company YEAR ESTABLISHED: 1721 MILITARY PRODUCT LINES: Shipbuilding machinery, speed boats. CIVTL PRODUCT LINES: Machine tools, welding equipment, sheet forming equipt, metalworking and woodworking machinery, welded metal blocks. KEY TECH./EQUIPT. EMPLOYED: Metal cut computer control equipment, casting factory, cutting workshop, thermal- processing, galvanic protection products, assembly welding workshop, shell assembly. CONVERSION PROJECTS: Development of small capacity shipbuilding and stainless steel kitchen utensils. PRODUCT SPECIALTY: Small tonnage shipbuilding, wooden shipbuilding, welding equipment, semi-automatic machines, shipbuilding machinery, wood working and metal processing equipment. PRIMARY BUSINESS: Shipbuilding machinery; SIC Code: 3441, 443, 3469, 3541, 3544, 3546, 3548, 3553 FORMER MINISTRY SUBORDN.: Ministry of the Shipbuilding Industry HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: Petrozavod is associated with the Ritm Scientific Production Association of St. Petersburg. Enterprise name: POISK SCIENTIFIC RESEARCH INSTITUTE LAST UPDATE: March 1996 APPROXIMATE EMPLOYMENT: Total: 570: Date: 1995 U.S. Department of Commerce RDBD 5 - St. Petersburg ALTERNATE NAMES: Nauchnyy issledovatelniy institut "Poisk", Nil Poisk, Poisk State Enterprise July 1996 1-42 ADDRESS: 195009, St. Petersburg, Russia Mikhailova Street, 17 Tel: (011-7-812) 531-89-72; Telex: N/A; Teletype: 122043 Mikron; Fax: (011-7-812) 542-1214; E-Mail: N/A GENERAL OVERVIEW: The Poisk Scientific Research Institute specializes in electronic management systems. PRIMARY BUSINESS: Development of electronic management systems; SIC Code: 3429, 3669 FORMER MINISTRY SUBORDN. Ministry of the Defense Industry APPROXIMATE EMPLOYMENT: Total: 1,000; Date: December 1995. PRINCIPAL OFFICERS Leonid S. Egorenkov, Director VladmirF. Vasilyev, Chief Engineer; Vyacheslav A.Lukin, Deputy Director for Commercial Issues OWNERSHIP: State-owned YEAR ESTABLISHED 1930 MILITARY PRODUCT LINES: Management systems for artillery shells, mortars, aviation bombs and explosive devices. CIVIL PRODUCT LINES: Explosive devices for mining and coal industries, consumer goods (Electronic locks, security systems). KEY TECHNOLOGIES/EQUIPMENT U.S. Department of Commerce HDBD 5 - St. Petersburg EMPLOYED: Design facilities for electronic management systems. CONVERSION PROJECTS The institute has plans to create a company that will manufacture windowframes. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO N/A Enterprise name: POPOV RESEARCH AND DEVELOPMENT INSTITUTE FOR RADIO BROADCASTING AND ACOUSTICS (NHRPA) LAST UPDATE: December 1995 ALTERNATE NAME: Joint Stock Company NHRPA ADDRESS: 197376, Russia, St. Petersburg, Naberezhnaya Reki Krestovki, 3 Tel: (812) 234-2945, 234-001 1, Fax: (812) 234-5722; Telex: N/A; E-mail: N/A GENERAL OVERVIEW: The AS Popov Institute was founded in 1923 and remains the biggest scientific center in the field of radio broadcasting, electro-acoustics, professional audio and studio equipment It is a part of the State Science and Production Enterprise "Informakustika". PRODUCT SPECIALTY: Complexes for TV reporters, consumer radio reception and acoustics equipment, sound amplifying equipment (household) and studio sound equipment. Juh 1-43 FORMER MINISTRY SUBORDN. : Ministry of Communications Equipment Industry. APPROXIMATE EMPLOYMENT: 500 employees; Date: December 1995. PRINCIPAL OFFICERS: Dr. Alexander E. Denin, Director OWNERSHIP: Privatized joint stock company (open type). YEAR ESTABLISHED: 1923 MILITARY PRODUCT LINES: High sensitive receivers and listening devices, information security systems. CIVTL PRODUCT LINES: Loud speakers, studio monitors, public address systems, studio mixing consoles, sound processors, digital audio workstations, broadcasting systems, fixed, portable, radio and car-radio tape recorders, CD players, audio amplifiers, wireless microphones, sound reinforcement systems, reverberators, sound effect processors, information security systems, test and measuring equipment and marketing studies for audio systems. PRIMARY TECH. AND EQUIPMENT: The institute is equipped with two anechoic chambers (the biggest in Europe), electronically shielded rooms, test equipment for certification of production prototypes, and listening rooms meeting EEC standards. OTHER RELEVANT INFORMATION : The institute's scientific facilities are comprised of four buildings with a total of 10,000 sq. meters. Production facilities total an additional 2,000 sq. meters. A new 37,000 sq. meter production plant previously under construction is at a standstill. Enterprise name: POZITRON JOINT STOCK COMPANY LAST UPDATE: December 1995 ALTERNATE NAMES: Aktsionnernoye obshchestvo "Poztron",NPO Pozitron, Leningrad Electronics Production Association, Positron Association ADDRESS: 194223 St. Petersburg, Russia Kurchatov Ulitsa, 1 0 Telephone : (011-7-812) 552-1617, 552- 6016: Telex: 121452 VITA SU; Fax: (011- 7-812), 552-6081, 552-0903; E-mail: root @ positron.spb.su GENERAL OVERVIEW: Pozitron is the leading former Soviet production facility for the manufacture of resistors, capacitors and television components. Pozitron produces a variety of military equipment, including electronic components and tensile condensers for missiles. It is composed of several enterprises, a research institute, and a design bureau. CONVERSION PROJECTS: The institute proposes working with foreign firms on production of loudspeakers and other consumer electronic products, distribution and repair services. U.S. Department of Commerce RDBD 5 - St. Petersburg 1-44 PRIMARY BUSINESS: Electronic components, televisions, VCRs; SIC Code: 3629, 3651; HS#: N/A FORMER MINISTRY SUBORDN.: July 1996 Ministry of the Electronics Industry APPROXIMATE EMPLOYMENT: Total: 500; Date: December 1995. PRINCIPAL OFFICERS: Yuriy I. Blokhin, General Manager Alexander V. Lanskov, Manager OWNERSHIP: Joint Stock Company YEAR ESTABLISHED: 1971 MILITARY PRODUCT LINES: Integrated circuits; multilayer chip capacitors; semiconductors for research; thermal detectors; sensors/potentiometers; reverse engineering of Japanese and Western electronic equipment; ceramic capacitors; tantalum capacitors. CIVIL PRODUCT LINES: Television sets (Electronika and Colorstar brands); VCRs; resistors and capacitors; laboratory equipment and medical instruments; computers; tools; bearings; abrasive materials; Christmas tree decorations; office equipment; film. KEY TECH. /EQUIPT. EMPLOYED: Electronic component production equipment; diamond lathe; clean room. For more information, see individual facility descriptions below. CONVERSION PROJECTS: Exploring research and development of tantalum condensers for televisions; video equipment; machining of metals; and ceramics. Pozitron manufactured 90,000 televisions in 1990, exporting half to Western Europe. Plans in 1990 called for expanding television production to 2 million sets per year. U.S. Department of Commerce RDBD 5 - St. Petersburg 1-45 Pozitron has also been emphasizing consumer goods since 1985. In March 1992, Pozitron's Vidikond Plant opened video assembly and packing plant as part of joint venture with Korea Daewoo Corporation. They plan to assemble/produce 200,000 annually. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: Following privatization, Pozitron no longer includes the Viton Plant, Kulon Plant, Lakon Plant, Mezon Plant, Rekond Plant and the Gerekond Institute which have all seceded from Pozitron and currently act as independent companies. Enterprise name: PRIMORSK SCIENTIFIC TECHNICAL CENTER OF THE RUSSIAN SPACE CORPORATION ENERGIYA LAST UPDATE: December 1995 ALTERNATE NAMES: Primorskiy filial NPO Energiya imeni akademika S.P. Koroleva ADDRESS 188910, Primorsk, Russia (Leningrad Oblast) Malodetskoselskiy Prospekt, 32 Tel: (011-7-81278) 75-737, 75-331 (General Director), 78-559 (Tech. Manager). Telex N/A; Fax: (01 1-7-81278) 75-443 GENERAL OVERVIEW: A long time participant in the development & testing of rocket engines for missiles & space launch Jufa 19! vehicles, Primorsk is now exclusively involved in space programs. It is part of the Russian Space Corpn. Energiya, Russia's premier developer of space technology. Primorsk specializes in rocket propulsion technology developed by Energiya. PRIMARY BUSINESS: Rocket propulsion; SIC Code: 2821, 2891, 3423, 3556, 3569, 3842 FORMER MINISTRY SUBORDN. Ministry of General Machine-Building APPROXIMATE EMPLOYMENT: Total: 700; Date: December 1995. PRINCIPAL OFFICERS: Sergey K. Petrov, Director Yury V. Sidel'nikov, First Deputy Director Alexander Zilitinchevich, Chief Designer OWNERSHIP: State-owned: a subsidary of the Russian Space Corporation Energiya. YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES Assembly & testing of rocket & aircraft engines and fuel. CIVIL PRODUCT LINES: Prosthetic devices; food processing equipment. KEY TECH. /EQUIPT. EMPLOYED: Primorsk has advanced facilities for the assembly and testing of rocket and aircraft engines. CONVERSION PROJECTS A prototype of the Vulcan cleaner has been developed at Primorsk based on the cleaning system used for rocket engines and fuels. This small U.S. Department of Commerce RDBD 5 - St. Petersburg 1-46 device is designed to clean pollutants such as waste water, industrial emissions, and toxic wastes. Fixed and truck-mounted versions of the Vulcan cleaner are planned. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: Primorsk is seeking joint ventures with Finland and Western countries to develop civilian products. Enterprise name: PROMETEY CENTRAL SCIENTIFIC RESEARCH INSTITUTE OF STRUCTURAL MATERIALS LAST UPDATE: March 1996 ALTERNATE NAMES TsNII konstruktsionnykh materialov (TsNIIKM) "Prometey," TsNIIMS, Central Research Institute of Construction Materials ADDRESS: 193167 St. Petersburg, Russia Ulitsa Shpalernaya, 49 Tel: (011-7-812) 274-3796, 274-2620; Telex: 322147 ALFA; Fax: (011-7-812) 274-1707; E-mail: N/A GENERAL OVERVIEW The Prometey Institute develops and produces advanced alloys and conducts research in metallurgical and welding techniques. PRIMARY BUSINESS: Metallurgy R&D; SIC Code: 2813, 2819, 3341, 3356, 3363, 3364, 3429, 3443, 3498, 3499, 3533, 3548, 3561, 3569, 3599, 3823, 3841, 3842, 3949; HS#: N/A July 1996 FORMER MINISTRY SUBORDN. Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT Total: 1,700; Date: 1994 PRINCIPAL OFFICERS: Igor Vasilievich Gorynin, Director Oleg G. Sokolv, First Deputy Director OWNERSHIP: State-controlled other alloys, including vacuum-arc and electroslag capabilities; process for rolling beryllium between two sheets of steel; argon gas-flow meter for welding; argon-filled chamber to work on titanium submarine hulls; composites; coatings; plastics; corrosion research-galvanic protection using an external current and special paint; porous amorphous materials able to withstand high temperature used as flexible radar absorption material. YEAR ESTABLISHED 1939 MILITARY PRODUCT LINES Heavy armor research and development; metallurgical research for shipbuilding; defectoscope quality control measures; titanium-alloy for submarine hull construction; non-magnetic steels and alloys for anti-submarine vessels; high-strength hull, steels, advanced propulsion system materials, aluminum alloys; titanium alloys for machinery system applications. CIVIL PRODUCT LINES Titanium alloys; aluminum-magnesium alloy with "memory" properties; large volume pressure containers made of wound polymer or carbon fibers; catalytic converters containing titanium fuel; double-layer steel with corrosion protection for cold weather environments (ice breaker sterns); corrosion resistant pipes for long distance heating systems; welding electrodes; titanium hydrofoils; technology for joining steel and aluminum and steel and titanium; testing systems to detect intercrystalline corosion (used in nuclear industries), and anode protection for ships. KEY TECH./EQUIPT. EMPLOYED Processes for working with titanium and U.S. Department of Commerce RDBD 5 - St. Petersburg 1-47 CONVERSION PROJECTS Use of titanium-alloy in off-shore drilling rigs, hulls and props for commercial ships, surgical instruments, filters, pumps, tanks, and sports equipment. Commercial applications for amorphous metal alloys with fine grains include use in magnetic and electromagnetic components. OTHER RELEVANT INFORMATION Prometey has a branch facility located at a shipyard in Severodvinsk, as well as a building in suburb of Gatchina in Leningrad. Prometey also has underground facilities: a main one beneath Aleksandr Nevskiy Monastery Museum and another in the area between Sinopskaya Naberezhnaya and Ulitsa Krasnovo Tekstil'shchika, possibly contiguous with Nevskiy complex. Enterprise name: PYROMETER JOINT STOCK COMPANY LAST UPDATE: December 1995 ALTERNATE NAMES: Leningradskiv zavod "Pirometr" ADDRESS 197061, St Petersburg. Russia Julv lo*> Ulitsa Skorokhodova, 16 devices. Tel: (011-7-812) 238-7245, Telex: 121687 ARTEK; Teletype: 321384 ARTEK; Fax: (011-7-812) 238-8306; E-mail: N/A. GENERAL OVERVIEW: Pyrometer makes many types of electronic products with uses in a wide range of applications. It was formerly part of the Elektroavtomatika Scientific Production Association. PRIMARY BUSINESS: Electronics; SIC Code: 3542, 3572, 3651, 3661, 3663, 3679, 3699, 3823, 3829, 3843, 3845; HS#: N/A FORMER MINISTRY SUBORDN.: Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT: Total: 4,000. PRINCIPAL OFFICERS: Sergey D. Bodrunov, President OWNERSHIP: Joint Stock Company, open type YEAR ESTABLISHED: 1920s MILITARY PRODUCT LINES: Various military electronic components including infrared electronics and electronic warning signaling equipment. CIVIL PRODUCT LINES: Pyrometric instrumentation for heavy metal industry, ultrasonic technologies, tape recorders, electronic switches, telephonic apparatus, micromotors. KEY TECH./EQUEPT. EMPLOYED: Brightness and spectrographs measurement U.S. Department of Commerce RDBD 5 - St. Petersburg 1-48 CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFO. : N/A Enterprise name: RADAR SCIENTIFIC RESEARCH INSTITUTE LAST UPDATE: March 1996 ALT. NAMES: Nil Radar, Radar MMS Company ADDRESS: 198095, St. Petersburg, Russia Promyshlennaya Ulitsa, 19 Tel: (011-7-812) 186-3310 Fax: (011-7-812) 186-4505; E-Mail: N/A Radar MMS Co., (medical equipment) 197349, St. Petersburg, Russia 37 Novo selko vskay Tel: (011-7-812) 393-9600, 393-3403 Fax: (011-7-812)394-4000 Moscow: Tel. (011-7-095) 925-1013 GENERAL OVERVIEW: The Radar Scientific Research Iinstitute designs and develops ship radars and surveillance systems. It is a part of the Scientific and Production Association Ravenstvo. PRIMARY BUSINESS: radars FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROX. EMPLOYMENT : Total 270; July 1996 Date: 1995. PRINCIPAL OFFICERS: Boris Nikanorovich Astashov, Director, Georgy Antsev, Gen. Director, Radar MMS (Medical equipt.& software development) OWNERSHIP: State-owned Tel: (011-7-812) 213-9604, 213-6140; Fax : (011-7-812) 218-7426; Telex: 321259 COLOR RU; E-mail: N/A GENERAL OVERVIEW: The Raduga Joint Stock Company is a major producer of color TV sets, marine telecommunications equipment and household electronics. YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Military radars and surveillance mechanisms CIVIL PRODUCT LINES: Civilian radars and radarscopes, medical equipment for emmergency use. KEY TECH. / EQUIPT. EMPLOYED : Electronics, radar technology CONVERSION PROJECTS: Civilian radars, medical equipment for use in ambulances and helicopters. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: N/A Enterprise name: RADUGA JOINT STOCK COMPANY LAST UPDATE: March 1996 ALTERNATE NAME: Raduga Electronics Plant, Kozitsky Prodn. Assn., PO Kozitskiy ADDRESS: 199161, Russia, St. Petersburg, Vasilaevsky Island, 5 Liniya, 70 U.S. Department of Commerce RDBD 5 - St. Petersburg 1-49 PRIMARY BUSINESS: Telecommunications equipment FORMER MINISTRY SUBORDN. : Ministry of the Communication Equipment Industry APPROXIMATE EMPLOYMENT: Total: 4,000; Date: 1994. PRINCIPAL OFFICERS: Nikolay G. Baranov, Director OWNERSHIP: Joint Stock Company. Employees hold 42% of the stock, while 2 private firms own 26% of the stock. YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Telecommunications equipment for naval vessels. CIVIL PRODUCT LINES: Color televisions, amplifiers, security systems, portable radio stations. KEY TECH. / EQUIPT. EMPLOYED: N/A CONVERSION PROJECTS: N/A OTHER RELEVANT INFORMATION: The company has a joint venture with a .Uih iooo Norwegian company for the manufacture of consumer goods. The company is interested in modernizing its equipment in an effort to focus on the manufacture of radio and electronic consumer goods. Enterprise name: RAVENSTVO PRODUCTION ASSOCIATION LAST UPDATE: March 1996 ALTERNATE NAMES: Proizvodst vennoye obyedineniye "Ravenstvo", PO Ravenstvo ADDRESS: 198099, Russia, St. Petersburg, Ulitsa Promyshlennaya, 19 Tel: (011-7-812) 186-8460, 186-1860 (Gen. Dir.), 186-2406 Ravenstvo-Servis), Fax : (011-7-812) 186-4505; Telex: n/a; Teletype: 321829 LYUKS; E- Mail: N/A GENERAL OVERVIEW: Ravenstvo is a mid-size company whose primary product has been ship radars and control systems. It is now expanding its production to commercial products in the oil and gas, mining and electronics industries. It includes the Radar Scientific Research Institute and the Ravenstvo-Servis State Enterprise. PRIMARY BUSINESS: Ship radars FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: Total: 2800 employees; Date: 1994 PRINCIPAL OFFICERS: U.S. Department of Commerce RDBD 5 - St. Petersburg Yury V. Nikandrov, General Director OWNERSHIP: State-owned YEAR ESTABLISHED: 1945 MILITARY PRODUCT LINES: Ship radars, electronic components and control systems. CIVTL PRODUCT LINES: Gas pipeline pump control systems, units for diamond, special purpose operator consoles, metro counters, electric lighters, commercial hamburger-making equipment, medical equipment, ecological devices, and radio receivers. KEY TECH./EQUIPT. : N/A CONVERSION PROJECTS: none HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: N/A Enterprise name: REDAN JOINT STOCK COMPANY LAST UPDATE: March 1996 ALTERNATE NAMES: Aktsionnernoye obshchestvo "Redan", AO Redan, Redan Central Design Bureau ADDRESS: 197374, St. Petersburg Russia, Primorsky Prospect, 46 Tel: (011-7-812) 239-4000, 239-2159, 239- 1891; Fax: (011-7-812) 239-3123; Telex: July 1996 1-50 N/A; E-Mail: N/A GENERAL OVERVIEW: The Redan Joint Stock Company is a relatively small producer of boats and equipment for naval and commercial uses, particularly patrol and rescue operations. PRIMARY BUSINESS: Special purpose boats. FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROX. EMPLOYMENT: Total 356; Date: 1994 The controlling block of stock is held by the multi-national oil company "Hermes- Soyuz" in Moscow. A large block of stock is held by the Industrial Construction Bank (Moscow & St. Petersburg). Enterprise name: RUBIN CENTRAL MARINE DESIGN BUREAU LAST UPDATE: December 1995 ALTERNATE NAMES: TsKBMT Rubin, Rubin Central Maritime Design Bureau, TsKB Rubin, Rubin Central Design Bureau for Maritime Engineering PRINCIPAL OFFICERS: Stanislav P. Abramov, General Director, Yakov Y. Lebedev, Design Bur. Director, OWNERSHIP: Joint Stock Company, open type. YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Patrol boats and rescue vessels. CIVIL PRODUCT LINES: Pleasure motor-boats, hydrological equipment, anchors, lifeboats, deck machinery for ships and model ships for hobbyists. KEY TECH. / EQUIPT. EMPLOYED: N/A CONVERSION PROJECTS: Construction of passenger craft and yachts. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: J.S. Department of Commerce IDBD 5 - St. Petersburg 1-51 ADDRESS: 191126 St. Petersburg, Russia Ulitsa Marata, 90 Tel: (011-7-812)210-1705, 113-5132, 314-0373, 314-3769; telex: 121455 NEPT SU; Teletype: 121091 NEPTUN; Fax: (011- 7-812) 164-3749, 112-4064; E-mail: N/A GENERAL OVERVIEW: Rubin Central specializes in submarine and other underwater technologies, but has suffered a sharp cutback in orders. Design bureau officials are trying to compensate with work on civilian projects. Civil work has reportedly increased from 10 percent in 1987 to 35 percent, mainly for the domestic oil. gas and fishing industries. In 1993. Rubin exhibited a model of a 30,000 ton underwater supertanker for use in exploiting oil and gas fields off* Russia's Artie coast PRIMARY BUSINESS: Shipbuilding. SIC code: 373; HS# N/A FORMER MINISTRY SUBORDN. Ministry of the Shipbuilding Industry Julv 1996 APPROXIMATE EMPLOYMENT Total: 2,500; Date: 1987. PRINCIPAL OFFICERS: Igor D. Spasskiy, General Director Sergey A. Komorov, Deputy Gen. Director, Nikolay Nosov, Deputy Director, Gennadiy B. Sorokin, Head of Marketing Export, Project Neptun, Vladimir Barantsev, Chief Designer OWNERSHIP: State-controlled YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Submarine designs. CIVIL PRODUCT LINES: Equipment for producing glue, gelatin, dry foods, coffee. KEY TECH./EQUIPT. EMPLOYED : N/A CONVERSION PROJECTS: Tourist submarines; portable power stations; underground nuclear power stations; arctic drilling platorms; underwater tankers; fast food enterprises; health spas; plastic models of submarines. HUMAN RESOURCES SUPPORT: N/A Enterprise name: RUSSIAN INSTITUTE OF HIGH-POWERED RADIO BUILDING LAST UPDATE: March 1996 ALTERNATE NAMES: Rossiskiy institut moshnogo radiostroyeniye, NPO RIMR, Nil Kominterna ADDRESS: 199161, St. Petersburg, Russia Vasilievsky Island, 1 1 Liniya, 66 Tel: (01 1-7-812), 213-0647; Fax: (01 1-7- 812) 213-0625; Telex: N/A; Teletype: 121216 URAN; E-Mail: N/A GENERAL OVERVIEW: The Komintern institute specializing in the design of radio transmitters for military and civil applications. It has affiliates in Luga, Krasnyy Bor, and Voyevoko. PRIMARY BUSINESS: Radio communications equipment FORMER MINISTRY SUBORDN. : Ministry of the Communications Equipment Industry. OTHER RELEVANT INFORMATION: The commercial arm of Rubin's Export Project Neptun, which is located at the neighboring Neptun Hotel & Business Center. Information on Export ProjectNeptun: Address: Obvodny Canal, 939, 191126, St. Petersburg, Russia; Tel: 314-3769; telex: 121455; Telefax: 1643749; its projects include export of diesel submarines. APPROX. EMPLOYMENT: Total: 70; Date: 1994. PRINCIPAL OFFICERS: Boris I. Zolotov, Director Vladimir F. Sharayev, Deputy Director OWNERSHIP: State-owned. YEAR ESTABLISHED: 1911 U.S. Department of Commerce RDBD 5 - St. Petersburg 1-52 July 1996 MILITARY PRODUCT LINES: Radio communication systems. CIVIL PRODUCT LINES: Broadcast antennas, medical equipment, radio and TV transmitters of small and medium output, and radio systems for charged particle accelerators. KEY TECH./EQUIPT. EMPLOYED : N/A CONVERSION PROJECTS: N/A tons. The shipyard is part of the Severnaya Verf Production Association, which includes an electrodes factory with a capacity of 20,000 tons annually and a furniture factory. PRIMARY BUSINESS: Shipbuilding; SIC Code: 373; HS#: N/A FORMER MINISTRY SUBORDN. Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT Total: 7,300; Date: 1992 HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFO. : N/A Enterprise name: SEVERNAYA VERF SHIPBUILDING PLANT PRINCIPAL OFFICERS Yuriy Lvovich Bokov, Director OWNERSHIP: The enterprise has privatized and is now a joint stock co. YEAR ESTABLISHED Early 1900s LAST UPDATE: December 1995 ALTERNATE NAMES: Sudostroitelnyy zavod "Severnaya verf," Northern Shipyard, Leningradskiy sudostroitelnyy zavod imeni A. A. Zhdanova, Northern Shipyard Open Joint Stock Company. ADDRESS 198096 St. Petersburg, Russia Ulitsa Korabelnaya, 6 Tel: (011-7-812) 184-8233, 184-8284 (chief engineer); Telex: 121386 SVER SU, 121386 KLAPAN; Fax: (011-7-812) 184-7678; E- Mail: N/A MILITARY PRODUCT LINES Destroyers. CIVIL PRODUCT LINES Roll-on/Roll- off (RO/RO) freighters; bulk carriers; accessories and spare parts for ships; salvage and diving equipment; barges; souvenirs; mattresses; furniture; consumer goods; metal structures; washbasins; nails. KEY TECH./EQUIPT. EMPLOYED N/A. CONVERSION PROJECTS Bulk carriers HUMAN RESOURCES SUPPORT N/A GENERAL OVERVIEW: Severnaya Vert is a major shipyard producing both naval and civilian ships. It is capable of building merchant ships up to 13,000 deadweight U.S. Department of Commerce RDBD 5 - St. Petersburg 1-53 Jul] Wv* Enterprise name: "SEVERNOYE" DESIGN BUREAU (Northern) LAST UPDATE: December 1995 ALTERNATE NAME: KB Sever technology for ships. CONVERSION PROJECTS: There are several conversion programs under consideration by the enterprise for the design of ships for commercial purposes. ADDRESS: 198096, Russia, St. Petersburg, Ulitsa Korabelnaya, 6 Tel: (812) 184-7674 Fax: (812) 184-1277, 184-8312 Telex: N/A; E- mail: N/A GENERAL OVERVIEW: Large design bureau specializing in ship design; co-located with the Northern Shipyard. PRODUCT SPECIALITY: Design of large ships. FORMER MINISTRY SUBORDN. : Ministry of Shipbuilding Industry APPROX. EMPLOYMENT: Total: 830; Date: 1994. PRINCIPAL OFFICERS: Vladimir Yukhin, General Director OWNERSHIP: State-owned YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Design of large antisubmarine battleships, cruisers and torpedo boat destroyers. CVIL PRODUCT LINES: Design of civilian ships. KEY TECH. / EQUEPT. : Design U.S. Department of Commerce RDBD 5 - St. Petersburg 1-54 OTHER RELEVANT INFORMATION: The structure of the enterprise hasn't changed during the last years. The enterprise has a "project" department that functions as a marketing department. Ninety percent of production is delivered to state-owned factories and 10 percent to privately-owned firms. Enterprise name: SIGNAL SCD2NTIFIC-INDUSTRIAL ENTERPRISE LAST UPDATE: December 1995 ALTERNATE NAMES: NPP Signal, PO Signal ADDRESS: 193019, St. Petersburg, Russia Ulitsa Knipovich, 4 Tel: (01 1-7-812) 567-2233; Fax : (011-7- 812) 567-8355;Telex: 122269 PIRS; Teletype: N/A; E- mail: N/A GENERAL OVERVIEW: The Signal Scientific Industrial Enterprise produces . communication equipment for the military and the civilian market. The company has four sites, including a central design office and three factories. PRIMARY BUSINESS: Radio Equipment. SIC Code: 3571, 3651,3661,3663, 3843, July 1996 3944, 3999. Signal: FORMER MINISTRY SUBORDN. : Ministry of the Communications Equipment Industry APPROXIMATE EMPLOYMENT: Total: 3,700; Date: 1994. PRINCIPAL OFFICERS: Professor Valentin P. Zanin, Director OWNERSHIP: One of the three factories has been transformed into a joint-stock company "SPECTR". The others remain state-owned, although they are taking steps towards privatization. YEAR ESTABLISHED: 1944 MILITARY PRODUCT LINES Communications equipment, including cryptographic equipment and telephones. CIVTL PRODUCT LINES Renovation of electrical and electronic and medical equipment: systems for ultraviolet and combined UV-Magnetic-Laser therapy of human blood, dental chairs; comm ercial information protection systems; Infra-Red vision devices and similar equipment for commercial use; Infra-Red driers for fruits, mushrooms and other produce. 1. St. Petersburg International Business Center. 2. Advanced Output Devices for control systems, computers, data processing and transmission systems. 3. Advanced Miniprinters and similar devices . 4. Specialized criminalistic laboratories with advanced communications and artificial vision devices. 5. Cryptographic confidential information protection systems 6. Ecological equipment for purification and regeneration of electroplating. 7. Radio and Telephone mobile system for transportation on route between St. Petersburg-Novorossiysk. 8. Automobile electronics (Electronic systems for fuel injection) OTHER RELEVANT INFORMATION: Signal has joint projects with Deutsche Telecom (Renovation of telephones), International American Products, Inc. (Dental chairs) and others. Enterprise name: SREDNENEVSKY SHIPBUILDING PLANT LAST UPDATE: December 1995 KEY TECH./EQUIPT. EMPLOYED : N/A PRIMARY TECH. / EQUIPT. Precision mechanics, PCB manufacturing, various assembly lines. CONVERSION PROJECTS: The following projects are under consideration by U.S. Department of Commerce RDBD 5 - St. Petersburg 1-55 ALTERNATE NAMES: Sredne-Nevskiv sudostroitelnyy zavod. Middle Neva Shipyard, Ust-Izhora Shipyard ADDRESS 189633, Kolpino Rayon. Russia St. Petersburg, Prospect Pontonnyy Juh W*> 199106, Russia, St. Petersburg, Shkiperskiy protok, 1 9 Telephone: (011-7-812) 265-5580, 265- 5535 (Director), 265-5500 (technical Mgr.); Telex: N/A; Fax: (011-7-812) 463-9766 GENERAL OVERVIEW: The Srednenevsky shipyard, located near the junction of the Izhora and Neva rivers in the Kolpino district of southern St.Petersburg, is an important builder of mine warfare ships for the Russian navy. The yard probably dates back to 1911, when the St. Petersburg Metals Plant, then a builder of marine turbines, established a shipyard at Ust-Izhora to build destroyers. Between the world wars the Ust-Izhora yard was limited to the construction of river barges. It was expanded into a major builder of minesweepers and other small combatants after World War II and built ships of the steel-hulled T-43, T-58, Turka, and Natya classes in the 1950s and 1960s. It has also built a few large tugs and small tankers for service as naval auxiliaries. Around 1 970 it began to experiment with glass-reinforced plastic and subsequently built a few Zhenya-class minehunters and many Yevgenya- and Lida-class inshore minesweepers. It also built hydrofoils of the Matka and Turya classes and the Tarantul- class missile corvettes. Today it is offering several types of ships on the civil market similar to its minesweeper classes, including ships of upto 100 tons with glass-reinforced plastic hulls, steel-hulled ships of up to 800 tons, and similar ships built with low- magnetic steel. PRIMARY BUSINESS: shipbuilding; SIC Code: 2023, 2511, 2514, 3523, 3536, 5337, U.S. Department of Commerce RDBD 5 - St. Petersburg 1-56 3589,3731,3732,3799. FORMER MINISTRY SUBORDN.: Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT: N/A PRINCIPAL OFFICERS: Viktor Pavlovich Pylev, Director Yuriy S.Yegorov, Technical Manger, Vsevolod D. Semenov, Commercial Dir. OWNERSHIP: State-controlled YEAR ESTABLISHED: 1911 MILITARY PRODUCT LINES: Minesweepers and small missile-armed combatants. CIVIL PRODUCT LINES: Ships and ship equipment, control and measuring instruments, automated systems and devices, dried milk, agricultural machinery, machinery for the food processing industry, household furniture, pleasure boats and sailboats. KEY TECH./EQUEPT. EMPLOYED N/A OTHER RELEVANT INFO: N/A Enterprise name: ST. PETERSBURG KRASNY OKTYABR MACHINE- BUILDING ENTERPRISE LAST UPDATE : December 1995 ALTERNATE NAMES: Sankt- Peterburgskoye mashinostroitelnoye predpriyatiye "Krasnyy Oktyabr," Red October Machine Building Production July 1996 Association N/A ADDRESS: 194100, St. Petersburg, Russia Ulitsa Politekhnicheskaya, 13/15 Tel.: (011-7-812) 247-9715, Telex: N/A; Teletype: 322194 KARTER SU; Fax: (011- 7-812) 247-2634; E-Mail: N/A GENERAL OVERVIEW: The Krasny Oktyabr Machine-Building Enterprise is a major producer of helicopter engines and components, as well as being the only producer of helicopter engine transmissions in the former USSR. It also has produced fighter jet engines and rocket engines. PRIMARY BUSINESS: Aircraft Engines; SIC Code: 3724; HS #: N/A FORMER MINISTRY SUBORDN. Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT: Total: 7,000; Date: 1992. PRINCIPAL OFFICER Anatoliy N. Fomichev, General Director OWNERSHIP: Joint Stock Company YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES Helicopter engines, generators, and transmissions; fighter jet engines; rocket engines. CIVIL PRODUCT LINES Helicopter engines and other components. KEY TECH./EQUIPT. EMPLOYED: J.S. Department of Commerce IDBD 5 - St. Petersburg CONVERSION PROJECTS Mopeds, engines for small tractors, snowmobiles, small motorcycles, gas turbine engines of various sizes, transmissions self-propelled cultivators, home water heaters, small winches, kitchen knives, footwear-making equipment, and medical equipment. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION: The Krasnyy Oktyabr enterprise does serial production of engines developed by the Klimov Design Bureau in St. Petersburg. Enterprise name: SVETLANA JOINT- STOCK COMPANY LAST UPDATE: February 1996 ALTERNATE NAMES: NPO Svetlana, Leningrad Svetlana Electronic Instrument Building Association, The St. Petersburg Svetlana Conglomerate of the Electronic Instrument Engineering Industry, Svetlana Electronic Device Manufacturing Corporation, Svetlana Electronic Instrument- Making Association. ADDRESS: 194156. St. Petersburg, Russia Prospekt Engelsa, 27 Tel: (011-7-812) 554-91-08, 554-03-72. 554-03-70; Telex: 121466 ELEKS SU; Fax (011-7-812)553-70-01; Teletype: 121004 BARKHAT GENERAL OVERVIEW: The Svetlana Joint-Stock Company is a lame July 1996 1-57 conglomerate primarily involved in the research, design, and manufacturing of electronic, microwave and electronic instruments. Svetlana also produces a wide variety of other products including medical, transportation, communications, agriculture, and recreation equipment and household appliances. The Svetlana Joint-Stock Company consists of approximately five separate plants, five experimental design bureaus, and two addresses, 27 Prospekt Engelsa and 2 Prospekt Svetlanskiy, for the main Svetlana facility in St. Petersburg. PRIMARY BUSINESS: Microelectronics; SIC Code: 3231, 3469, 3671, 3679, 3823, 3825, 3844, 3845, 3861, 3873, 3944 FORMER MINISTRY SUBORDN. : Ministry of the Electronics Industry APPROX. EMPLOYMENT: 10,600 (down from 28,000 in the 1980's) PRINCIPAL OFFICERS: Vladmir Popov, General Director OWNERSHIP: Joint Stock Company YEAR ESTABLISHED: 1889 MILITARY PRODUCT LINES: Military electronics. CIVIL PRODUCT LINES: The Svetlana Association produces a variety of electronic and microelectronic instruments, including transmitting and modulator tubes for all frequency ranges; X-band broadband passive TR limiter; klystron amplifiers; X-ray and radio tubes; portable X-ray units for medicine and industry; high-frequency fast response thyristors; transistors; integrated microcircuits; microwave components, microcomputer; microcontrollers; microcalculators; ultrasonic delay lines; receiving tubes; process equipment for the manufacture of electronic engineering items, the Svetlana Company also produces consumer goods such as articles made from electro-vacuum glass, dewar flasks, lamp- brackets, photographic and cinema accessories, agriculture selection equipment, coffee makers, ski bindings, strings for musical instruments, glass and crystal utensils and articles, thermos flasks, automobile mirrors, tachometers, chess computers, and toys. KEY TECH. /EQUIPT. EMPLOYED: N/A CONVERSION PROJECTS: The Svetlana received $3 million from the U.S. Defense Enterprise Fund and established a subsidiary SED-SPB to market electronic devices. Svetlana established a joint venture with R & G Inc., a U.S. company. This joint venture (SED-SPB) empolys 2,500. SED-SPB's output equals that of all Svetlans's subsidiaries combined. Svetlana is still seeking to enter into additional joint ventures for manufacturing electronic engineering equipment; cooperate in the marketing and sales of products, with the sales rights allotted to its partners; exchange electronic engineering equipment for process equipment; purchase special equipment for the manufacturing of electronics; and advertise its products on the international market. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: Because of its sucessful cooperation with its U.S. Department of Commerce RDBD 5 - St. Petersburg July 1996 1-58 U.S. partner, Svetlana's export sales are booming. It predicts a 12 percent growth in production in 1996. Svetlana will also modify any of its products to meet the specific needs of its customers; develop new items for its customers within a period of six to twelve months; and extend licenses for manufacturing electronic engineering equipment. Setlana became a joint stock company in 1994. and a Branch for Hydroponics & Thermal Optics, 190000 St. Petersburg. Pochtamtskaya 3. PRIMARY BUSINESS: Optics R&D; SIC Code: 3828; HS#: N/A FORMER MINISTRY SUBORDN. : Ministry of the Defense Industry APPROXIMATE EMPLOYMENT: Total: 12,000. Date: 1991. Enterprise name: VAVELOV STATE OPTICAL INSTITUTE PRINCIPAL OFFICERS Guriy T. Petrovsky, Director General LAST UPDATE: December 1995 YEAR ESTABLISHED: 1918 ALTERNATE NAMES: Gosudarstvennyy opticheskiy institut (GOI) imeni S. I. Vavilova; All-Russian Science Center "State Optical Institute imeni S.I. Vavilova" ADDRESS: 199034 St. Petersburg, Russia Birzhevaya Liniya, 1 2 Tel: (011-7-812) 218-4892, 218-7526; Telex: 121235 GOI.SU; Teletype: 122118 LAVINA;Fax: (011-7-812) 128-3720; E-Mail: [email protected] GENERAL OVERVIEW: The Vavilov Institute, like the U.S. National Institute of Standards and Technology, sets the standards for all optics institutes, plants, and enterprises in the former Soviet Union. Roughly 60 percent of Vavilov's research and design efforts were dedicated to military and space projects. It includes the Scientific Research Institute of Testing Complexes for Optical Electronic Instruments & Systems, 188537 Sosnovyy Bpr, Leningrad Oblast, MILITARY PRODUCT LINES: Optical components for weapons, including submarine and naval applications, space and strategic defense; guidance systems; spectroscopic instruments; radiometers. CIVIL PRODUCT LINES: Television equipment; multipath interferometers; beacons; marine navigation signals; lighthouses; flash lamps; zoom and other variable-focus cameras; automobile headlights; airport landing lights; opthalomological lenses; zinc selenide for lasers; special-effect holograms; iridium mirrors. Space and lasers optics, including large lenses and mirrors; beryllium and composite mirrors; adaptive optics. diamond-turned metal mirrors, glass- crystalline mirrors; wide range of anti- reflective and mirror coatings; photoelectric sensors. General optical instruments, including image transmission fiber bundle for medical endoscopes; reflective, selective, and anti-reflective coatings, computer-aided lens design; computer-aided production and J.S. Department of Commerce LDBD 5 - St. Petersburg Ju!\ W*> 1-59 testing of precision optical surfaces; methods for polishing extremely soft or hard optical materials; ultrasonic and ion cleaning and ion polishing; aspheric surface generation; infrared imagers for medical diagnosis and for industrial uses such as detection of heat losses in buildings and in heat supply systems. KEY TECH. /EQUIPT. EMPLOYED: See tech. and processes described above. CONVERSION PROJECTS: Production of lasers for medical uses in place of lasers used for defense applications. Civil products exhibited in 1993 include the world's largest color hologram and laser equipment for engraving crystal tableware. 321201 SVINETS; Telex: N/A; E-Mail: N/A GENERAL OVERVIEW: Vektor is a research institute specializing in radio components and radiotechnical reconnaissance systems. PRIMARY BUSINESS: Electronics FORMER MINISTRY SUBORDN. : Ministry of the Communications Equipment Industry APPROX. EMPLOYMENT: Total: 2,360; Date: 1994. PRINCIPAL OFFICERS: Gennady M. Kobyakob, Director HUMAN RESOURCES SUPPORT: N/A OWNERSHIP: State-owned OTHER RELEVANT INFORMATION: Vavilov publishes the journals Optical Journal and Works of the Vavilov Institute and sells some of its products through V/O MASHPRIBORINTORG, 121200 Moscow, Telexes: 411235,411236. Enterprise name: VEKTOR SCIENTIFIC RESEARCH INSTITUTE LAST UPDATE: December 1995 ALTERNATE NAMES: Nauchno- issledovatelniy onstitut "Vektor", Nil Vektor YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Radio- Technical reconnaissance equipment CIVIL PRODUCT LINES: Hearing aids, electronic equipment, for cars and locomotives. KEY TECH. /EQUD?T. EMPLOYED: N/A CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT: N/A ADDRESS: 197376, St. Petersburg, Russia Ulitsa Academica Pavlova 14A OTHER RELEVANT INFO. : N/A Tel: (011-7-812) 233-7815, 234-1509, Fax: (011-7-812)234-1974; Teletype: U.S. Department of Commerce RDBD 5 - St. Petersburg July 1996 1-60 Enterprise name: VYBORG INSTRUMENT BUILDING PLANT LAST UPDATE: March 1996 ALTERNATE NAMES: Vyborgskiy priborostroitelniy zavod, Vyborg Electronic Equipment Making Plant ADDRESS: 188900, Vyborg, Leningrad Oblast, Russia Ulitsa Danilova, 1 5 Tel: (01 1-7-812) 78 254-06, 78 289-16, Experimental Design. Bureau (011-7-812) 732-254-06; Fax: (01 1-7-812) 78 217-45 Telex: N/A; Teletype: 322856 KLEN; E- mail: N/A GENERAL OVERVIEW: The plant specializes in products for the electronics industry, including devices for pollution control, computing equipment, medical devices, and communications equipment. The plant has a co-located Experimental Design Bureau. PRIMARY BUSINESS: Electronics including electron microscopes and electron beam equipment. FORMER MINISTRY SUBORDN. : Ministry of the Electronics Industry APPROXIMATE EMPLOYMENT: Total: 1,200; Date: 1994. PRINCIPAL OFFICERS: Gennady N. Fedoronko, Director Boris V. Gin, Deputy Dir./ External Affairs OWNERSHIP: Joint Stock Company U.S. Department of Commerce RDBD 5 - St. Petersburg YEAR ESTABLISHED: 1953 MILITARY PRODUCT LINES: Electronic and control equipment. CIVIL PRODUCT LINES: Small electron microscopes, pollution control devices. medical respirators, aerosol particle counters, scales, dosimeters, mass spectrometers, computers, and precision temperature regulators. KEY TECH. / EQUIPT. : The plant possesses a sufficient quantity of high precision machining equipment, control- measuring equipment and devices for radiophysical characteristics measurement. CONVERSION PROJECTS: Production of scales, automobile wiring, harnesses and electron microscopes. OTHER RELEVANT INFORMATION: The plant is interested in foreign partners for organization of new product manufacturing using technical abilities of the plant in accordance with Western technologies. Enterprise name: D.V. YEFREMOY STATE SCIENTIFIC RESEARCH INSTITUTE OF ELECTROPHYSICAL APPRATUS LAST UPDATE: February' 1996 ALTERNATE NAMES: NIIEFA Imeni Yefremova ADDRESS: 189631, St. Petersburg, pos.Metallostun. Russia Sovetskiy Prospekt, 1 Jul\ 1-61 Telephone: (011-7-812) 464-7980, 464- 5845; Telex: N/A; Teletype: 3221 15 OBZOR; Fax: (011-7-812) 265-7974; E- Mail: [email protected] GENERAL OVERVIEW: The Tefremova Institute is a leading designer of lasers, particle accelerators and other specialized electrical equipment for research and industry. It developed the TOKOMAK controlled thermonuclear fusion installation, and has participated in the building of all large accelerator, laser and thermonuclear fusion installations in the former Soviet Union. It was formerly a part of NPO Elektrofizka. PRIMARY BUSINESS: Nuclear physics; SIC Code: 3443, 3511,3621,3699, 3845 accessories. KEY TECH./EQUEPT. EMPLOYED: N/A CONVERSION PROJECTS Low-energy medical linear accelerators for cancer treatment and medical sterilization. HUMAN RESOURCES SUPPORT Housing, day care, kindergardens, medical clinic, sports complex. OTHER RELEVANT INFORMATION: The Yefremov institute has been a participant in the International Thermonuclear Experimental Reactor Project. FORMER MINISTRY SUBORDN.: Ministry of Atomic Power Enterprise name: ZVEZDA JOINT STOCK COMPANY APPROXIMATE EMPLOYMENT: Total: 2500. Date: 1994. PRINCIPAL OFFICERS: Oleg A. Gusev, Deputy Director for Electrotechnical Equipment Mikhail D. Veselov, Deputy Director for Economics OWNERSHIP: State-controlled LAST UPDATE: March 1995 ADDRESS: 193012, St. Petersburg, Russia Ultisa Babushkina, 123 Tel: (011-7-812) 262-0747, 262-0747; marketing dept. 262-8142; fax: (01 1-7-812) 267-4685, 262-5518, marketing dept. 267- 2364; Tele-type: 322183 KOLCO; E-mail: N/A YEAR ESTABLISHED 1945 MILITARY PRODUCT LINES: N/A. CIVIL PRODUCT LINES Nuclear reactors and particle accelerators, lasers electric motors and other electric machines, generators for steam and gas turbines, and electric equipment spare parts and U.S. Department of Commerce RDBD 5 - St. Petersburg GENERAL OVERVIEW: Joint Stock Company "ZVEZDA" is a high volume . manufacturer of light-weight high-speed diesel engines and diesel electric generating sets used in submarines, torpedo, rocket and landing boats. PRIMARY BUSINESS: Branch: high- speed light-weight diesel engines SIC Code: July 1996 1-62 3519 FORMER MINISTRY SUBORDN. : Ministry of Transportations APPROXIMATE EMPLOYMENT: Total: 5,000; Date: 1994. PRINCIPAL OFFICER: Valery A. Radchenko, General Director, Vladimir F. Kopasevich, Director of Foreign- Economic Relations, Alexander V. Tyubin, Commercial Director OWNERSHIP: Joint stock company YEAR ESTABLISHED 1932 MILITARY PRODUCT LINES: Engines for tanks, submarines, torpedo, rocket- artillery boats and landing craft. CIVIL PRODUCT LINES: High-speed, diesel engines from 500 to 1 100 kw for locomotive, truck, trawler, earthmover, hydrofoil boat use. Also diesel-electric generating sets from to 7350 kw and heavy duty pumping units. KEY TECH./EQUIPT. EMPLOYED: Aluminium alloy castings to 400 kg., steel and titanium forgings to 50 kg. Eighteen shops with the latest machining centers. CONVERSION PROJECTS Engines for hydro-foil passenger ferries and large UPS (un-interruptible power supplies). HUMAN RESOURCES SUPPORT: The plant has a fully developed social services infra-structure with kindergardens, clinics and swiming pools. OTHER RELEVANT INFORMATION: The plant exports its products to a large number of overseas customers in many countries. J.S. Department of Commerce IDBD 5 - St. Petersburg 1-63 Juh N*> CHAPTER 2 - MINI-PROFILES OF START-UP ENTERPRISES IN ST.PETERSBURG/ LENINGRAD OBLAST INDEX; NAME OF ENTERPRISE PAGE Shipbuilding Interferum-Metal Joint Venture 8 Shipbuilding Academy 9 Almaz Shipbuilding Firm 9 Armalit Open Joint Stock Company 9 Vodtranspribor Open Joint Stock Company 9 State Enterprise Vodtranspriborpusk 9 Central Design Bureau Vostok 9 State Enterprise Plant Dvigatel 1 0 Special Design Bureau Dozhd 1 0 Special Design Bureau Indikator Joint Stock Company 1 0 Special Design and Technology Bureau Kompensator 1 0 Kompressor Open Joint Stock Company 1 0 Special Design Bureau Kotlostroenie 1 0 Central Design Bureau Meridian 1 0 Morelektroradiokomlekt Joint Stock Company 1 0 Proletarskiy Zavod (Proletarian Plant) Joint Stock Company 1 0 RUMB Joint Stock Company 1 1 State Enterprise Center Sudpromokhrana 1 1 Special Technical Servicing Center Toil" 1 1 U.S. Department of Commerce July l^Oo RDBD 5 - St. Petersburg 2- 1 Shturmanskie Pribory Open Joint Stock Company State Enterprise Era Central Scientific Research Institute Lot Plant Northern Press State Planning Institute (Soyuzproektverf ) State Enterprise Zapadnoe (Western) Planning and Design Bureau Design Bureau Svyaz'morproekt Leningrad Plant imeni Kulakov Naval Bureau for Machine Building Malakhit Science and Production Association Avrora Experimental Plant Avrora of Science & Production Association Avrora Central Scientific Research Institute Avrora Joint Stock Company Plant Logoda (See Kirovsk Scientific Research Department of the Central Scientific Research Institute Morfizpribor) Kirovsk Scientific Research Department of the Central Scientific Research Institute Morfizpribor (See Joint Stock Company Plant Logoda) Joint Stock Company Svirsk Shipyard Joint Stock Company Leningrad Shipbuilding Plant Pella Joint Stock Company Plant Burevestnik Open Joint Stock Company Plant Pirs Joint Stock Company Special Design and Technology Bureau Gals Scientific Research Institute Morteplotekhnika Experimental Plant Krizo Aviation St Petersburg Machine Building Plant Vpered Petersburg GiproAviaProm Open Joint Stock Company 11 11 11 11 12 12 12 12 12 12 12 12 13 13 13 13 13 13 13 14 14 14 14 U.S. Department of Commerce RDBD 5 - St. Petersburg 2-2 July 1996 St Petersburg Plant Pribor Joint Stock Company 1 4 Special Design Bureau for Planning Complexes and Shoemaking Machines 1 4 Plant Sfera 14 Tekhpribor Open Joint Stock Company 1 4 Design Bureau for State Enterprise Tekhpribor 1 5 Open Coloration St Petersburg Plant TEMP 1 5 Luga Branch of Joint Stock Company St Petersburg Plant Temp 1 5 Space Scientific Research Institute of Command Instruments 1 5 Experimental Plant of the Scientific Research Institute of Command Instruments 1 5 Open Joint Stock Company 'Machine Building Association imeni K. Marx' for the production of equipment for the production of chemical fibers 1 5 A Branch of the Central Design Bureau for Heavy Machine Building 1 5 Aysberg Open Joint Stock Company 1 6 Interbranch Specialized Medical-Engineering Center Pul'sar 1 6 Experimental Design Bureau Reaktor 1 6 Scientific Research Institute of Precision Mechanics Open Joint Stock Company 1 6 Electronics Closed Joint Stock Company Design and Technology 1 6 Bureau Svetlana-Mikroelektronika of the Svetlana Joint Stock Co. Closed Joint Stock Company SED-SPB of the Svetlana Joint Stock Company 1 6 Closed Joint Stock Company Svetlana-Poluprovodniki (Semi-Conductors) 1 7 Closed Joint Stock Company Svetlana-EVP 1 7 Closed Joint Stock Company Svetlana-Rentgen 1 7 Special Design Bureau Vit 1 7 U.S. Department of Commerce Jul\ W^-> RDBD 5 - St. Petersburg 2-3 Plant Vitel 17 Plant Viton Open Joint Stock Company 17 Gayot Closed Joint Stock Company 17 Capacitor Plant Kulon Joint Stock Company 18 Capacitor Plant Mezon 1 8 Special Design Bureau Joint Stock Company Morion 1 8 Morion Open Joint Stock Company 18 Plant Rekond 18 St Petersburg SSMU 18 Open Joint Stock Company Scientific Research, Planning and Design Enterprise Terminal 18 Limited Liability Partnership Farada 18 Special Design and Technology Bureau Ferrod 19 Ferropribor Joint Stock Company 19 State Auto Transport Enterprise Elektronavto 1 9 St Petersburg Administration Elektronkompleks 19 A Plant at the Central Scientific Research Institute Elektron 1 9 Scientific Research Institute Girikond of Science and Production Association Pozitron 19 Russian Scientific Research Institute Elektronstandart 1 9 State Enterprise Central Scientific Research Institute Elektron 1 9 Open Joint Stock Company Lakond 19 State Plant Elektronstandart 20 Radio State Plant for Radio Technical Equipment 20 State Enterprise Navigator 20 U. S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-4 Production Association Rossiya 20 Design Bureau St Petersburg Plant Rossiya 20 Russian Institute for Radio Navigation and Time 20 Plant Energiya 20 Electromechanical Plant Zarya Open Joint Stock Company 21 Experimental Plant Impul's 21 Intos Closed Joint Stock Company 21 Plant Komponent 21 Leningrad State Planning and Technology Institute 2 1 Leningrad Design Bureau for Technological Fittings (Osnashcheniya) 2 1 State Enterprise Mikrotekhnika 2 1 Scientific Research Institute for Programmed Systems (Sredstv) 22 Scientific Research Institute for Regional Information Management Systems Petrokometa 2 1 St Petersburg Science and Production Enterprise Piramida 2 1 Simvol Open Joint Stock Company 22 Science & Production Enterprise "Radar-MMS" Joint Stock Company 22 Scientific Research Institute for Radio Apparatuses 22 Trade Sector Machine Building Plant Joint Stock Company 22 Joint Stock Company Experimental Plant 22 Radio Plant Svir 22 Communications Equipment Scientific Research Institute Rubin 22 Scientific Research Institute Masshtab 23 Experimental Design Bureau Raduga Joint Stock Company 23 Science and Production Association Dal'nyaya Svyaz (Long Distance Communication) 23 U.S. Department of Commerce Juh lv)v2o RDBD 5 - St. Petersburg 2-5 Scientific Research Institute Del'ta 23 Scientific Research Institute Neptun 23 Plant Volna Joint Stock Company 23 State Planning Institute 23 Scientific Research Institute Zvezda 23 Experimental Production Enterprise Zvukotekhnika 24 State Plant Izmeritel 24 Special Design Bureau Orion 24 Priboy Closed Joint Stock Company 24 Leningrad Leasing Administration Radar 24 State Enterprise Production and Science Complex Severnaya Zarya (Northern Dawn) 24 Commercial Center Tovakom Joint Stock Company 24 Television Equipment Plant Ekran 24 Munitions and Special Chemicals Leningrad Plant Sokol 25 State Plant imeni Morozova 25 Optics Scientific Research Institute for Optical Instrument Making for Amateur Photo Equipment 25 Scientific Research Institute for Complex Research on Optical-Electronic Instruments and Systems 25 Land Arms Leningrad Automated Lines Design Bureau Rotor 25 Open Joint Stock Company Special Machine Building 25 State Enterprise Machine Building Plant Vulkan 26 State Science and Production Firm VNITI (All-Russian Scientific Research and Technology Institute) 26 Leningrad Special Design Bureau for Planning Textile Machinery 26 U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-6 Leningrad Mechanical Plant imeni Karl Libknekht 26 Lenprodmash Joint Stock Company 26 Scientific Research and Technology Institute of Materials Research 26 Transmashproekt Open Joint Stock Company 26 Polyarnaya Zvezda (Pole Star) Research & Production Association 26 Zvyozdochka (Little Star) Engineering Enterprise 27 U.S. Department of Commerce Juh 1996 RDBD 5 - St. Petersburg 2-7 St Petersburg Defense Enterprises Shipbuilding Enterprise name: INTERFERUM-METAL JOINT VENTURE LAST UPDATE: December 1995 ADDRESS: 191126, St. Petersburg, Russia P.O. Box 57 Tel: (011-7-812) 184-8006, 184-3113, Fax: (011-7-812) 185-0984, E-mail: N/A GENERAL OVERVIEW: JV Interferrum is one of only a few specialized enterprises in Russia, and the only one in the Northwestern part of the country that currently engage in salvaging written-off military vessels, submarines, armored tank equipment, missile launchers. It also engages in the removal of sunken vessels from ocean floors. PRIMARY BUSINESS: Recovery of scrap metal from large objects. SIC: 7389 FORMER MINISTRY SUBORDN.: USSR Ministry of Metallurgy EMPLOYMENT: About 100 people PRINCIPAL OFFICERS: Aleksandr A. Startsev, Gen. Director Yelena N. Netyosova, Deputy Director for Finances OWNERSHIP: Privately owned, joint venture in the form of a closed joint stock company. Foreign partner: Finland YEAR ESTABLISHED: 1990 MILITARY PRODUCT LINES: Salvaging of military equipment. CIVIL PRODUCT LINES: Processing of industrial scrap metal as raw material for metallurgical melting plants. KEY TECH./EQUIPT. EMPLOYED : Flame, gas, plasma torch cutting, mechanical cutting of scrap metal. Hydraulic scissor jack made by the German co. Lindemann with a force capacity of 2000 tons; a 100 ton floating crane; two gantry cranes (32 tons and 16 tons); slipway; two morages; railway routes; two locomotives; etc. CONVERSION PROJECTS: Demilitarization of submarines, armored equipment, artillery, and missile launchers. Participation in Free Economic Zone Development. U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-8 OTHER RELEVANT INFORMATION: Unique in its geographic location, the enterprise has access to the Baltic Sea through its own moorings, railway approaches, and good motor vehicle communication; near to (within two kilometers) the major sea and trading port of St. Petersburg. The JV's territory, with an area of six hectares, creates favorable prerequisites for setting up a free trade zone. The Interferrum enterprise has contacts with representatives of the Russian Ministry of Defense and military plants for the salvaging of arms and military equipment. It is currently setting up plants for the liquidation of arms (military plants make their territories available for this) JV Interferrum performs an important ecological function, in Russia's Northwest in the Baltic Sea basin, involving the removal of sunken objects from water regions. Name: Shipbuilding Academy Address: 190008 St Petersburg, Ulitsa Soyuza Pechatnikov, 16 Phone: 8-812-114-19-64 Fax: 114-30-23 Name: Shipbuilding Firm "Almaz" Address: 197042 St Petersburg, Petrovskiy Proezd, 26 Phone: 8-812-234-51-48,235-51-48 Fax: 235-70-69 General Director: Anatoliy Petrovich Korolev Name: "Armalit" Open Joint Stock Company Address: 198097 St Petersburg, Ulitsa Trefoleva, 2 Phone: 8-812-292-96-28 Fax: 252-34-00 Name: "Vodtranspribor" Open Joint Stock Company Address: 197342 St Petersburg, Ulitsa Serdobol'skaya, 64 (See State Enterprise "Vodtranspriborpusk") Phone: 8-812-242-00-97 Fax: 242-11-44 Name: State Enterprise "Vodtranspriborpusk" Address: 197342 St Petersburg, Ulitsa Serdobol'skaya, 64 (See "Vodtranspribor" Open Joint Stock Company) Phone: 8-812-244-18-53 Fax: 242-25-07, Name: Central Design Bureau "Vostok" Address: 198099 St Petersburg, Ulitsa Promyshlennaya, 17 Phone: 8-812-186-25-33 Fax: 186-62-52 U.S. Department of Commerce Jnlv 1996 RDBD 5 - St. Petersburg 2-9 Name: State Enterprise Plant "Dvigatel"' Address: 195175 St Petersburg, Vyborgskaya Naberezhnaya, 13 Phone: 8-812-542-01-21 Fax: 542-69-12 Name: Special Design Bureau "Dozhd"' Address: 194044 St Petersburg, Muchnoy Prospekt, 2 Phone: 8-812-310-57-17 Fax: NA Name: Special Design Bureau "Indikator" Joint Stock Company Address: 191011 St Petersburg, Ulitsa Sadovaya, 104 Phone: 8-812-113-67-40 Fax: NA Name: Special Design and Technology Bureau "Kompensator" Address: 198096 St Petersburg, Ulitsa Korabel'naya, 6 Phone: 8-812-184-23-11 Fax: NA Name: "Kompressor" Open Joint Stock Company Address: 194044 St Petersburg, Prospekt K. Marksa, 64 Phone: 8-812-245-50-90 Fax: 245-69-12 Name: Special Design Bureau "Kotlostroenie' Address: 199026 St Petersburg, 23rd Line, 2 Phone: 8-812-217-23-77 Fax: 217-23-77 Name: Central Design Bureau "Meridian" Address: 197198 St Petersburg, Ulitsa Blokhina, 19 Phone: 8-812-232-39-75 Fax: 233-94-07 Name: "Morelektroradiokomlekt" Joint Stock Company Address: 190000 St Petersburg, Prospekt Grivtsova, 3 Phone: 8-812-314-04-68 Fax: 315-75-30 Name: "Proletarskiy Zavod" (Proletarian Plant) Joint Stock Company Address: 193029 St Petersburg, Prospekt Dudko, 3 U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2- 1 0 Phone: 8-812-567-32-30 Fax: 567-44-66 Name: "Rumb" Joint Stock Company Address: 198188, Russia, St. Petersburg, Ultitsa Zaitseva, 41 Phone: (01 1-7-8 12)1 84-73 12(Director), 184-7311 (Chief Engineer) Fax: (011-7-812) 185-0869 Teletype: 321814 Poisk Overview: The company is primarily involved in economic research, consulting and economic analysis of former shipbuilding ministry's enterprises. (Date: February 1996) Employment: The company has 36 employees (December 1995) and was established in 1992. Alexander A. Lotsenko Ownership: The company is privatized with the state owning 22 percent. Employees 23 percent and investors owning 55 percent. The company receives no government subsidies. Name: State Enterprise "Center 'Sudpromokhrana'" Address: 199026 St Petersburg, 27th Line, 4 Phone: 8-812-251-52-72 Fax: 251-04-66 Name: Special Technical Servicing Center "Toir" Address: 198020 St Petersburg, Rizhskiy Prospekt, 23 Phone: 8-812-251-52-72 Fax: 251-04-66 Name: "Shturmanskie Pribory" Open Joint Stock Company Address: 1951 12 St Petersburg, Krasnogvardeyskaya Ploshchad, 1 Phone: 8-812-224-05-37 Fax: 224-04-90 Name: State Enterprise "Era" Address: 190000 St Petersburg, Prospekt Grivtsova, 1 Phone: 8-812-311-39-19 Fax: 315-41-20 Name: Central Scientific Research Institute "Lot" Address: 199178 St Petersburg, Vasil'evskiy Ostrov (Island), 19th Line, 24 Phone: 8-812-213-42-44 Fax: 213-42-44 Name: Plant "Northern Press" Address: 195196 St Petersburg, Ulitsa Tallinskaya, 7 U.S. Department of Commerce .hilv Wv>o RDBD 5 - St. Petersburg 2-11 Phone: 8-812-221-24-41 Fax: NA Name: State Planning Institute (Soyuzproektverf ) Address: St Petersburg, NFI Phone: 8-812-23-09 Fax: NA Name: State Enterprise "Zapadnoe (Western) Planning and Design Bureau" Address: 196128 St Petersburg, Ulitsa Varshavskaya, 50 Phone: 8-812-296-11-44,296-55-02 Fax: NA Name: Design Bureau "Svyaz'morproekt" Address: 190000 St Petersburg, Ulitsa Gogolya, 14 Phone: 8-812-312-82-68 Fax: 315-31-49 Name: Leningrad Plant imeni Kulakov Address: 197198 St Petersburg, Ulitsa Yablochkova, 20 Phone: 8-812-233-89-26 Fax: NA Name: Naval Bureau for Machine Building "Malakhit" Address: 1 96 1 3 5 St Petersburg, Ulitsa Frunze, 1 8 Phone: 8-812-298-35-90 Fax: 298-19-17 Name: Science and Production Association "Avrora" Address: 194021 St Petersburg, Ulitsa Karbysheva, 15 Officers: Victor M.Korchanov, Doctor of Technical Sciences & Academician, Deputy General Director (Phone: 8-812-275-07-22, Fax: 271-79-04) Phone: 8-812-247-22-50 Fax: 247-80-61 Name: Experimental Plant "Avrora" of Science and Production Association "Avrora" Address: St Petersburg, NFI Phone: 8-812-555-57-71 Fax: NA Name: Central Scientific Research Institute "Avrora" Address: St Petersburg, NFI Phone: 8-812-247-22-50 U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2- 1 2 fax: NA Name: State Enterprise "Ravenstvo-Servis" Address: 198099 St Petersburg, Ulitsa Promyshlennaya, 19 Phone: 8-812-186-29-06 Fax: 186-45-05 Name: Joint Stock Company "Plant 'Logoda'" (See Kirovsk Scientific Research Department of the Central Scientific Research Institute "Morfizpribor") Address: 188690 Kirovsk, Leningrad Oblast, Ulitsa Naberezhnaya, 1 Phone: 8-81262-2-09-79 Fax: 2-13-67 Name: Kirovsk Scientific Research Department of the Central Scientific Research Institute "Morfizpribor" (See Joint Stock Company "Plant 'Logoda'") Address: 188690 Kirovsk, Leningrad Oblast, Ulitsa Naberezhnaya, 1 Phone: 8-81262-2-44-05 Fax: 2-13-67 Name: Joint Stock Company "Svirsk Shipyard" Address: Nikol'skiy Poselenie (Settlement), Leningrad Oblast, Podporozhskiy Rayon, Ulitsa Novaya, 1 6 Phone: 8-8265-2-03-98 Fax: 2-02-52 Name: Joint Stock Company "Leningrad Shipbuilding Plant 'Pella'" Address: 188694 Otradnoe, Leningrad Oblast, Ulitsa Tsentral'naya, 4 Phone: 8-16-4-42-91 Fax: 315-36-42 Name: Joint Stock Company "Plant 'Burevestnik'" Address: 188350 Gatchina, Leningrad Oblast, Ulitsa Sovetskaya, 31 Phone: 8-81271-2-33-02 Fax: 3-62-60 Name: Open Joint Stock Company "Plant 'Pirs'" Address: 188900 Vyborg-46, Leningrad Oblast, Polelenie (Settlement) imeni Kalinina. Ulitsa Ruberoidnaya, 27 Phone: 8-81278-2-06-74 Fax: 2-06074 Name: Joint Stock Company "Special Design and Technology Bureau 'Gals'" Address: 188900 Vyborg,Leningrad Oblast,Ulitsa Fizkultornaya,17-a U.S. Department of Commerce Jul\ 1996 RDBD 5 - St. Petersburg 2- 1 3 Phone: 8-81278-2-74-86 Fax: 2-61-09 Name: Scientific Research Institute "Morteplotekhnika" Address: 189510 Lomonosov, Leningrad Oblast, Verkhniy Park, 1 Phone: 8-812-422-45-64 Fax: 422-75-35 Name: Experimental Plant "Krizo" Address: 188350 Gatchina, Leningrad Oblast, 1st Industrial Zone, Ulitsa Zheleznodorozhnaya, 43 Phone: 8-81271-2-38-87 Aviation Name: St Petersburg Machine Building Plant "Vpered" Address: 199048 St Petersburg, Naberezhnaya Reki Smolenki, 19/21 Phone: 8-812-355-88-74 Fax: 218-28-85,355-88-60 Name: "Petersburg GiproAviaProm" Open Joint Stock Company Address: 194044 St Petersburg, Ulitsa Smolyachkova, 19 Phone: 8-812-542-90-23 Fax: NA Name: St Petersburg Plant 'Pribor'" Joint Stock Company Address: 199034 St Petersburg, Vasil'evskiy Ostrov (Island), 17th Line 2a Phone: 8-812-213-47-05 Fax: NA Name: Special Design Bureau for Planning Complexes and Shoemaking Machines Address: 000000 St Petersburg, Izmaylovskiy Prospekt, 22, Phone: 8-812-292-59-70 Fax: NA Name: Plant "Sfera" Address: 199050 St Petersburg, NFI Phone: 8-812-213-73-04 Fax: NA Name: "Tekhpribor" Open Joint Stock Company Address: 196084 St Petersburg, Korpusnoy Proezd, 1-a Phone: 8-812-296-97-27 U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-14 Fax: 296-95-72 Name: Design Bureau for State Enterprise "Tekhpribor" Address: 196084 St Petersburg, Korpusnoy Proezd, 1-a, M-6 Phone: 8-812-296-97-27 Fax: NA Name: Open Coloration "St Petersburg Plant 'TEMP'" Address: 198095 St Petersburg, Ulitsa Shvetsova, 23 Phone: 8-812-252-07-08 Fax: 252-69-81 Name: Luga Branch of Joint Stock Company "St Petersburg Plant 'Temp'" Address: 188260 Luga, Leningrad Oblast, Ulitsa Bol'shaya Zarechnaya, 19 Phone: 8-81272-2-18-10 Fax: NA Space Name: Scientific Research Institute "Impul's" Address: 195220 St Petersburg, Ulitsa Obruchevykh, 1 (See Interbranch Specialized Medical-Engineering Center "Pul'sar") Phone: 8-812-245-58-48 Fax: 530-99-83 Name: Scientific Research Institute of Command Instruments Address: 198216 St Petersburg, Tramvaynyy Prospekt, 16 Phone: 8-812-255-85-85 Fax: 254-94-97 Name: Experimental Plant of the Scientific Research Institute of Command Instalments Address: 198216 St Petersburg, NFI Phone: 8-812-255-01-65 Fax: NA Name: Open Joint Stock Company "Machine Building Association imeni K. Marx" for the production of equipment for the production of chemical fibers Address: 194044 St Petersburg, Bol'shoy Sampsonievskiy Prospekt, 66 Phone: 8-812-245-07-80 Fax: 245-61-83 Products: Missile- and space-related equipment; knitting machinery. Name: A Branch of the Central Design Bureau for Heavy Machine Building U.S. Department of Commerce .Uil\ l°°o RDBD 5 - St. Petersburg 2-15 Address: 198005 St Petersburg, Obvodnoy Kanal, 118 Phone: 8-812-292-32-84 Fax: NA Name: "Aysberg" Open Joint Stock Company Address: 199034 St Petersburg, Vasil'evskiy Ostrov (Island), Bol'shoy Prospekt, 36 Phone: 8-812-213-36-09 Fax: 213-55-78 Name: Interbranch Specialized Medical-Engineering Center "Pul'sar" Address: 195220 St Petersburg, Ulitsa Obruchevykh, 1 (See Scientific Research Institute "Impul's") Phone: 8-812-247-64-01 Fax: NA Name: Experimental Design Bureau "Reaktor" Address: 193012 St Petersburg, Prospekt Obukhovskoy Oborony, 12a Phone: 8-812-267-97-21 Fax: NA Name: "Scientific Research Institute of Precision Mechanics" Open Joint Stock Company Address: 195256 St Petersburg, Prospekt Nepokorennykh, 47 Phone: 8-812-535-17-00 Fax: 535-83-74 Electronics Name: "Svetlana" Joint Stock Company Address: 194156 St Petersburg, Prospekt Engel'sa, 21 Phone: 8-812-554-03-70 Fax: 553-70-01 Name: Closed Joint Stock Company "Design and Technology Bureau 'Svetlana- Mikroelektronika" of the "Svetlana" Joint Stock Company Address: 196066 St Petersburg, Moskovskoe Shosse, 46 Phone: 8-812-293-67-03 Fax: 108-44-47 Name: Closed Joint Stock Company "Svetlana-Elektronpribor" of the "Svetlana" Joint Stock Company Address: 194156 St Petersburg, Prospekt Engel'sa, 27 Phone: 8-812-554-94-51 Fax: 553-70-01 U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-16 Name: Closed Joint Stock Company "Svetlana-Mashinostroeniye' Address: 194156 St Petersburg, Prospekt Engel'sa, 27 Phone: 8-812-554-91-91 Fax: 553-70-01 Name: Closed Joint Stock Company "SED-SPB" of the "Svetlana" Joint Stock Company Address: 194156 St Petersburg, Prospekt Engel'sa, 27 Phone: 8-812-554-93-68 Fax: 554-03-71 Name: Closed Joint Stock Company "Svetlana-Poluprovodniki (Semi-Conductors)' Address: 194156 St Petersburg, Prospekt Engel'sa, 27 Phone: 8-812-554-03-85 Fax: 554-70-01 Name: Closed Joint Stock Company "Svetlana-EVP" Address: 194156 St Petersburg, Prospekt Engel'sa, 27 Phone: 8-812-553-25-65 Fax: NA Name: Closed Joint Stock Company "Svetlana-Rentgen" Address: 198170 St Petersburg, Ulitsa Promyshlennaya, 5 Phone: 8-812-186-59-44 Fax: NA Name: Special Design Bureau "Vit" Address: 194295 St Petersburg, Poeticheskiy Bul'var, 2 Phone: 8-812-597-92-02 Fax: 597-00-17 Name: Plant "Vitel" Address: 194295 St Petersburg, Ulitsa Ivana Fomina, 6 Phone: 8-812-597-23-11 Fax: NA Name: "Plant 'Viton'" Open Joint Stock Company Address: 194295 St Petersburg, Ulitsa Ivana Fomina, 6 Phone: 8-812-597-23-11 Fax: 597-07-37 Name: "Gayot" Closed Joint Stock Company Address: 197022 St Petersburg, Ulitsa Professora Popova, 23 Phone: 8-812-234-44-36 U.S. Department of Commerce .'ulv lv^> RDBD 5 - St. Petersburg 2-17 Fax: NA Name: "Capacitor Plant 'Kulon'" Joint Stock Company Address: 195176 St Petersburg, Piskarevskiy Prospekt, 25 Phone: 8-812-225-02-46 Fax: 225-26-65 Name: Capacitor Plant "Mezon" Address: 194175 St Petersburg, Bol'shoy Sampsonievskiy Prospekt,28 Phone: 8-812-542-15-61 Fax: 542-50-41 Name: Special Design Bureau Joint Stock Company "Morion" Address: 199155 St Petersburg, Prospekt Kima, 13 -a Phone: 8-812-350-78-72 Fax: 350-72-90 Name: "Morion" Open Joint Stock Company Address: 199155 St Petersburg, Prospekt Kima, 13-a Phone: 8-812-350-75-75 Fax: 350-95-65 Name: Plant "Rekond" Address: 194021 St Petersburg, Ulitsa Kurchatova, 10 (See "Pozitron" Open Joint Stock Company) Phone: 8-812-43-33 Fax: 552-60-57 Name: St Petersburg SSMU Address: 194214 St Petersburg, Prospekt Engel'sa, 99 Phone: 8-812-553-68-38 Fax: NA Name: Open Joint Stock Company "Scientific Research, Planning and Design Enterprise 'Terminal'" Address: 193 124 St Petersburg, Ulitsa Krasnykh Tekstil'shchikov, 2 Phone: 8-812-274-72-03 Fax: 271-58-09 Name: Limited Liability Partnership "Farada" Address: 194021 St Petersburg, Ulitsa Kurchatova, 10 Phone: 8-812-921-68-07; Fax: N/A U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-18 Name: Special Design and Technology Bureau "Ferrod" Address: 198320 St Petersburg, Krasnoe Selo, Ulitsa Svobody, 50 Phone: 8-812-132-12-20 Fax: NA Name: "Ferropribor" Joint Stock Company Address: 198320 St Petersburg, Krasnoe Selo, Ulitsa Svobody, 50 Phone: 8-812-132-10-34 Fax: 132-14-36 Name: State Auto Transport Enterprise "Elektronavto" Address: 194292 St Petersburg, Promzona (Industrial Zone) "Parnas' Phone: 8-812-597-63-98 Fax: 597-63-42 Name: St Petersburg Administration "Elektronkompleks1 Address: 192123 St Petersburg, Ulitsa Radishcheva, 39 Phone: 8-812-273-49-55 Fax: 279-04-88 Name: A Plant at the Central Scientific Research Institute "Elektron' Address: 194223 St Petersburg, Prospekt M. Toreza, 68 Phone: 8-812-552-14-49 Fax: 552-31-97 Name: Scientific Research Institute "Girikond" of Science and Production Association "Pozitron" Address: 194021 St Petersburg, Ulitsa Kurchatova, 10 Phone: 8-812-552-91-62 Fax: 552-60-57 Name: Russian Scientific Research Institute "Elektronstandart' Address: 196143 St Petersburg, Ploshchad Pobedy, 2 Phone: 8-812-293-34-72 Fax: 293-45-15 Name: State Enterprise Central Scientific Research Institute 'Elektron' Address: 194223 St Petersburg, Prospekt M. Toreza, 68 Phone: 8-812-552-36-00 Fax: 552-31-97 Name: Open Joint Stock Company "Lakond" Address: 187416 Novaya Ladoga, Leningrad Oblast, Ulitsa Suvorova, 47 U.S. Department of Commerce .'ulv W*H-> RDBD 5 - St. Petersburg 2-19 Phone: 8-263-3-01-56 Fax: 3-17-40 Electronic equipment, condensors. Name: State Plant "Elektronstandart" Address: 188350 Gatchina, Leningrad Oblast, Ulitsa 120th Gatchina Division, 2nd Industrial Zone Phone: 8-81271-2-26-68 Fax: NA Radio Name: State Plant for Radio Technical Equipment Address: 198330 St Petersburg, Lermontovskiy Prospekt, 54 Phone: 8-812-251-84-00 Fax: 251-84-05 Name: State Enterprise "Navigator" Address: 197042 St Petersburg, Malyy Prospekt, 4 Phone: 8-812-235-18-54 Fax: 235-45-54 Name: Production Association "Rossiya" Address: 195027 St Petersburg, Sverdlovskaya Naberezhnaya, 44 Phone: 8-812-225-93-01 Fax: 226-79-02 Name: Design Bureau St Petersburg Plant "Rossiya" Address: 195160 St Petersburg, Sverdlovskaya Naberezhnaya, 44 Phone: 8-812-225-10-96 Fax: 226-78-00 Name: Russian Institute for Radio Navigation and Time Address: 193 124 St Petersburg, Proezd Rastrelli, 2 Phone: 8-812-274-14-88 Fax: 283-10-33 Name: Plant "Energiya" Address: 197022 St Petersburg, Ulitsa Pionerskaya, 44 Phone: 8-812-235-54-84 Fax: 235-47-58 U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-20 Name: "Electromechanical Plant 'Zarya'" Open Joint Stock Company Address: 191 186 St Petersburg, Ulitsa Kazanskaya, 7 Phone: 8-812-312-73-72 Fax: 314-58-71 Name: Experimental Plant "Impul's" Address: 198320 St Petersburg, Krasnoe Selo, Kingiseppskoe Shosse, 55 Phone: 8-812-132-46-20 Fax: NA Name: "Intos" Closed Joint Stock Company Address: 197342 St Petersburg, Naberezhnaya Chernoy Reki, 41 Phone: 8-812-242-22-80 Fax: 246-90-21 Name: Plant "Komponent" Address: 195271 St Petersburg, Ulitsa Bestuzhevskaya, 10 Phone: 8-812-540-18-55 Fax: 544-67-41 Name: Leningrad State Planning and Technology Institute Address: 195009 St Petersburg, Lesnoy Prospekt, 19 Phone: 8-812-542-74-21 Fax: NA Name: Leningrad Design Bureau for Technological Fittings (Osnashcheniya) Address: 197342 St Petersburg, Ulitsa Beloostrovskaya, 28 Phone: 8-812-242-25-45 Fax: 242-25-42 Name: State Enterprise "Mikrotekhnika" Address: 197022 St Petersburg, Ulitsa Pionerskaya, 44 Phone: 8-812-235-15031 Fax: NA Name: Scientific Research Institute for Programmed Systems (Sredstv) Address: 196084 St Petersburg, Moskovskiy Prospekt, 108 Phone: 8-812-294-83-66 Fax: 298-43-24 Name: Scientific Research Institute for Regional Information Management Systems "Petrokometa" Address: 196240 St Petersburg, Ulitsa Krasnoputilovskaya, 1 13, korp 2 U.S. Department of Commerce Jul\ 1996 RDBD 5 - St. Petersburg 2-21 Phone: 8-812-123-20-79 Fax: 264-60-22 Name: St Petersburg Science and Production Enterprise "Piramida" Address: 196143 St Petersburg, Ulitsa Ordzhonikidze, 42 Phone: 8-812-264-66-55 Fax: 264-60-22 Name: Science and Production Enterprise "Radar-MMS" Joint Stock Company Address: 194214 St Petersburg, Ulitsa Novosel'kovskaya, 37 Phone: 8-812-393-96-00 Fax: NA Name: "Simvol" Open Joint Stock Company Address: 198052 St Petersburg, Ulitsa Egorova, 23-b Phone: 8-812-292-48-48 Fax: 292-20-74 Name: Scientific Research Institute for Radio Apparatuses Address: 199106 St Petersburg, Vasil'evskiy Ostrov (Island), Shkiperskiy Protok (Channel), 19 Phone: 8-812-356-01-40 Fax: 352-37-51 Name: "Trade Sector Machine Building Plant" Joint Stock Company Address: 193019 St Petersburg, Ulitsa Fayansovaya, 22 Phone: 8-812-567-98-88 Fax: 567-31-43 Name: Joint Stock Company "Experimental Plant" Address: 188350 Gatchina, Leningrad Oblast, Ulitsa 120th Gatchina Division, 1 Phone: 8-81271-212-32-22 Fax: NA Name: Radio Plant "Svir" 187710 Lodeynoe Pole, Leningrad Oblast, Prospekt Lenina, 133 Phone: 8-81264-2-04-11 Fax: NA Communications Equipment Name: Scientific Research Institute "Rubin" Address: St Petersburg, NFI Phone: 8-812-245-37-38 (Same as Scientific Research Institute "Del'ta") U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-22 Fax: NA Name: Scientific Research Institute "Masshtab" Address: 197342 St Petersburg, Ulitsa Kantemirovskaya, 5 Phone: 8-812-245-51-65 Fax: 245-51-65 Name: "Experimental Design Bureau 'Raduga'" Joint Stock Company Address: 197342 St Petersburg, a/ya 3 80,Ulitsa Kantemirovskaya, 12 Phone: 8-812-245-51-42 Fax: 245-51-86 Name: Science and Production Association "Dal'nyaya Svyaz" (Long Distance Communication) Address: 197046 St Petersburg, Petrogradskaya Naberezhnaya, 34 Phone: 8-812-233-55-02 Fax: 233-43-27 Name: Scientific Research Institute "Del'ta" Address: St Petersburg, NFI Phone: 8-812-245-37-38 (Same as Scientific Research Institute "Rubin") Fax: NA Name: Scientific Research Institute "Neptun" Address: 199161 St Petersburg, Vasil'evskiy Ostrov (Island), 7th Line, 78 Phone: 8-812-213-63-22 Fax: 350-05-19 Name: "Plant 'Volna'" Joint Stock Company Address: 198095 St Petersburg, Ulitsa Marshala Govorova, 29 Phone: 8-812-252-09-14 Fax: 252-22-88 Name: State Planning Institute Address: 197342 St Petersburg, Vyvorgskaya Naberezhnaya, 61 Phone: 8-812-245-34-81 Fax: NA Name: Scientific Research Institute "Zvezda" Address: 198903 St Petersburg, Petrodvorets, Krasnyy Prospekt, 61 Phone: 8-812-427-54-22 Fax: 427-92-18 U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-23 Name: Experimental Production Enterprise "Zvukotekhnika" Address: 199048 St Petersburg, Vasil'evskiy Ostrov (Island), Malyy Prospekt, 58 Phone: 8-812-213-74-69 Fax: NA Name: State Plant "Izmeritel1" Address: 197136 St Petersburg, Chkalovskiy Per., 50 Phone: 8-812-232-61-52 Fax: 234-37-86 Name: Plant "Krasnaya Zarya" Address: 194044 St Petersburg, Bol'shoy Sampsonievskiy Prospekt, 60 Phone: 8-812-542-05-92 Fax: 541-83-69 Name: Special Design Bureau "Orion" Address: 194044 St Petersburg, Ulitsa Tobol'skaya, 12 Phone: 8-812-248-41-03 Fax: 542-92-78 Name: "Priboy" Closed Joint Stock Company Address: 199106 St Petersburg, Shkiperskiy Protok, 14 Phone: 8-812-217-01-84 Fax: 356-04-25 Name: Leningrad Leasing Administration "Radar" Address: 197022 St Petersburg, Aptekarskiy Proezd, 6, Kor. A-7 Phone: 8-812-234-55-20 Fax: 234-43-65 Name: State Enterprise "Production and Science Complex 'Severnaya Zarya (Northern Dawn)'" Address: 194100 St Petersburg, Ulitsa Kantemirovskaya, 7 Phone: 8-812-245-54-75 Fax: 245-42-76 Name: "Commercial Center Tovakom"' Joint Stock Company Address: 197342 St Petersburg, Ulitsa Kantemirovskaya, 4 Phone: 8-812-245-03-20 Fax: 245-68-69 Name: Television Equipment Plant "Ekran" Address: 198320 St Petersburg, Kingiseppskoe Shosse, 53 Phone: 8-812-132-43-67 U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-24 Fax: 132-43-03 Munitions and Special Chemicals Name: Leningrad Plant "Sokol" Address: 187026 Poselenie (Settlement) Nikol'skoe, Tosnenskogo Rayon, Leningrad Oblast Phone: 8-81261-6-60-32,6-60-20 Fax: 6-62-49 Products: Cable, gun powder, varnish, paint, chemicals, furniture. Name: State Plant imeni Morozova Address: 188679 Poselenie (Settlement) imeni Morozova, Vsevolzhskogo Rayon, Leningrad Oblast Phone: 8-812-703-51-03 Fax: 703-51-64 Products: Special chemicals. Optics Name: Scientific Research Institute for Optical Instrument Making for Amateur Photo Equipment Address: St Petersburg, NFI Phone: 8-812-218-75-26 Fax: NA Name: Scientific Research Institute for Complex Research on Optical-Electronic Instruments and Systems Address: 188536 Sosnovyy Bor, Leningrad Oblast Phone: 8-81269-6-25-17 Fax: NA Land Arms Name: Leningrad Automated Lines Design Bureau "Rotor' Address: 198097 St Petersburg, Ulitsa Trefoleva, 42 Phone: 8-812-186-01-88 Fax: 186-01-88 Name: Open Joint Stock Company "Special Machine Building" Address: 198097 St Petersburg, Prospekt Stachek, 47 (see Kirov Plant) Phone: 8-812-252-13-43 Fax: 184-19-64 U.S. Department of Commerce Juh 1596 RDBD 5 - St. Petersburg 2-25 Name: State Enterprise Machine Building Plant "Vulkan' Address: 197042 St Petersburg, Ulitsa Pionerskaya, 50 Phone: 8-812-235-07-61 Fax: 235-64-45 Name: State Science and Production Firm VNITI (All-Russia Scientific Research and Technology Institute) Address: 197022 St Petersburg, Malyy Prospekt, PS, 87 Phone: 8-812-232-10-40 Fax: 233-18-54 Name: Leningrad Special Design Bureau for Planning Textile Machinery Address: 197042 St Petersburg, Ulitsa Pionerskaya, 50 (see Vulkan Plant) Phone: NA Fax: NA Name: Leningrad Mechanical Plant imeni Karl Libknekht Address: 194044 St Petersburg, K-44, Ulitsa Chugunnaya, 14 Phone: 8-812-292-95-42 Fax: 542-70-01 Products: Munitions, automobile parts, wood-working machine tools. Name: "Lenprodmash" Joint Stock Company Address: 198020 St Petersburg, Prospekt Ogorodnikova, 40 Phone: 8-812-251-71-31, 251-55-81, 251-71-25, 251-66-13, 251-66-51, 251-38-85 Fax: 251-69-20 Name: Scientific Research and Technology Institute of Materials Research Address: 193171 St Petersburg, Babushkina, 36, Korp. 1 Phone: 8-812-560-17-00 Fax: 560-10-22 Name: "Transmashproekt" Open Joint Stock Company Address: 198005 St Petersburg, Izaylovskiy Prospekt 4 Phone: 8-812-292-29-92,292-42-01 Fax: 251-81-38,251-95-42 Business: Research into the conversion of defense enterprises. Polyarnaya Zvezda (Pole Star) Research & Production Association Box 40, St. Petersburg, 198262, Russia Alexandr P. Matlakh, Ph.D., General Director Phone: (812) 157-12-22, 151-22-66 U.S.Department of Commerce July 1996 RDBD 5 - St. Petersburg 2-26 Fax: (812)15721-77 E-mail: [email protected] Zvyozdochka (Little Star) Engineering Enterprise Pr. Mashinostroiteley, 12 Severodvinsk, Arkhangelsk region 164509, Russia U.S. Department of Commerce Julv l^Oo RDBD 5 - St. Petersburg 2-27 CHAPTER 3 - ENTERPRISES OUTSIDE LENINGRAD OBLAST AND UPDATES TO SOME 4TH EDITION PROFILES INDEX: NAME OF ENTERPRISE CHELYABINSK URAL TRAILER JOINT STOCK COMPANY IZHEVSK SARAPUL RADIO PLANT JOINT STOCK COMPANY KALUGA OBPNSK RESEARCH AND PRODUCTION ENTERPRISE "TECHNOLOGIYA" KAMENSK-URALSKIY OKTYABR PRODUCTION ASSOCIATION KAZAN SVIYAGA SCIENTIFIC PRODUCTION ASSOCIATION MOSCOW (including MOSCOW OBLAST1 AEROELEKTRIK JOINT STOCK COMPANY ALL-RUSSIAN SCIENTIFIC RESEARCH INSTITUTE OF RADIO ENGPNEERING (VNIIRT) CENTRAL SCIENTIFIC RESEARCH INSTITUTE OF MACHINE-BUILDING (TsNIImash) DESIGN BUREAU OF PRECISION MACHTNE-BUILDING (KBTM) MOSCOW CHERNYSHEV STATE MACHINE-BUILDING PRODUCTION ENTERPRISE PULSAR SCIENTIFIC PRODUCTION ASSOCIATION SAPFIR SCIENTIFIC RESEARCH INSTITUTE TUSHTNO MACHINE-BUILDING DESIGN BUREAU SOYUZ NOVOSIBIRSK OKSID PRODUCTION ASSOCIATION OMSK OMSK MACHINE-BUILDING DESIGN BUREAU JOINT STOCK COMPANY ROSTOV-ON-DON GORIZONT PRODUCTION ASSOCIATION SARATOV SARATOV ORDZI IONIKIDZE PRODUCTION ASSOCIATION PAGE 5 6 6 7 s i> 10 10 11 i: 13 13 U.S. Department of Commerce RDBD 5 - St. Petersburg 3-1 Juh l** Enterprise name: URALS TRAILER JOINT STOCK COMPANY LAST UPDATE: April 1996 ALTERNATE NAMES: Aktsionernoye obshchestvo "Uralavtopritsep", Chelyabinsk Machine-Building Plant for Trailers, Chelyabinsk Machine-Building Automobile and Tractor Trailer Plant, ChMZAP ADDRESS: 454038, Chelyabinsk, Russia Ulitsa Khlebozavodskaya, 6 Urals Trailer Joint Stock Company Telephone: (011-7-3512) 24-05-44, 24-37- 54; Telex: 124834 UISSU Teletype: 124280 KVARTS Fax: (011-7-3512)24-04-54 E-Mail: N/A GENERAL OVERVIEW: The Urals Trailer Joint Stock Company is a World War-II era facility that was privatized in 1993 . The company specializes in the production of trailers, both light- and heavy- duty types, for passenger cars and truck tractors. The company produces heavy-duty semitrailers including construction equipment hauling, and customized types. PRIMARY BUSINESS: Truck trailers; SIC Code: 3523, 3553, 3644, 3644, 3715, 3799 FORMER MINISTRY SUBORDINATION: Ministry of the Agricultural Machinery Industry EMPLOYMENT: Total: 3500; Date: 1994 PRTNCD7AL OFFICERS: Yuriy Dmitrovich Koshcheyev, Director OWNERSHIP: Joint Stock Company YEAR ESTABLISHED: 1943 MILITARY PRODUCT LINES: Trailers and semitrailers for use as heavy-equipment U.S. Department of Commerce RDBD 5 - St. Petersburg 3-2 transporters. CIVTL PRODUCT LINES Trailers and semitrailers, bogies for semitrailers, motor vehicle and agricultural machinery parts and accessories, machinery for the cattle industry, wood-working tools and hardware. key technologh:s/equd?ment employed n/a conversion projects: n/a human resources support n/a other relevant information N/A Enterprise name: SARAPUL RADIO PLANT JOINT STOCK COMPANY LAST UPDATE: November 1995 ALTERNATE NAMES: Aktsionernoye obshchestvo "Sarapulskiy radiozavod", Sarapul Ordzhonikidze Radio Plant ADDRESS: 427900, Sarapul, Russia Ulitsa Gogolya, 40 Telephone: (011-7-34147) 2-26-33, 2-49- 08, 9-89-64; Telex: N/A Teletype: 755648 ORLENOK Fax: (01 1-7-34147) 2-47-09; E-Mail: N/A GENERAL OVERVIEW: The Sarapul Radio Plant Joint Stock Company has been producing communications equipment for both military and civil use for more than 50 years. Under conversion the company has expanded production of radios for civil use, including models formerly used by the military. PRIMARY BUSINESS: Communications equipment; SIC Code: 3469, 3565, 3651, 3663, 3824 FORMER MINISTRY SUBORDN. : July 1996 Ministry of the Radio Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS: Aleksandr Mikhaylovich Polusmak, Director OWNERSHIP: Joint stock company YEAR ESTABLISHED World War-II era MILITARY PRODUCT LINES wave radios and other types of communications equipment. Short- CIVIL PRODUCT LINES Radio-and TV- broadcasting equipment; household radioelectronic apparatus including radio receivers, radio/tape-recorders, and multiband car radios; radio communications equipment including short-wave and VHF radio stations, and antennas; money counting and packaging machines. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS An Army short-wave radio, the Severok, is now being produced for civil use. Other conversion programs include: the Ural-293, and -334 car radio/tape- recorders, and the computer- controlled Ural-292 with storage and automatic search functions; radio-telephone equipment; bank money counting and sorting machines; and a laser CD player. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO. N/A Enterprise name: OBNINSK TEKHNOLOGIYA RESEARCH AND PRODUCTION ENTERPRISE LAST UPDATE: April 1996 ALTERNATE NAMES: Tekhnologiya State Research Center at Obninsk, NPO Tekhnologiya U.S. Department of Commerce RDBD 5 - St. Petersburg ADDRESS: 249020, Obninsk, Kaluga region, Russia Tel: (08439) 2-39-15, (08439) 2-39-05 Fax: (095) 255-22-25, Telex: N/A, E-Mail: N/A GENERAL OVERVIEW: The Obninsk Tekhnologiya Research and Production Enterprise has been a leader in the research and development of glass and ceramic materials, primarily for aerospace applications. It is currently expanding its applications to the automotive, shipbuilding and metallurgical fields. PRIMARY BUSINESS: High performance aviation and space shuttle materials; SIC Code: 2679, 2819, 2824, 2891, 3229, 3296, 3469, 3559, 3624, 3769 FORMER MINISTRY SUBORDN. : Ministry of Aviation Industry APPROXIMATE EMPLOYMENT: N/A PRINCIPAL OFFICER: Aleksander G. Romashin, General Director Vladimir V. Vikulin, Deputy General Mgr OWNERSHIP: State owned YEAR ESTABLISHED: 1959 MILITARY PRODUCT LINES Development of non-metallic parts for aircraft, including cockpit windshields, composite payload flaps, instrument parts, honey comb parts for SU-26 and SU-2° Tekhnologiya has also been involved in the development of ceramic composite armor and adiabatic engines. CIVIL PRODUCT LINES Russian airliners such as IL-62, 1L-Sc\ TU-134, IV- 154, YAK-40, YAK-42 and the "Buran" space shuttle Also glass and ceramic pans for civil applications. KEY TECHNOLOG1KS FQITPMFN 1 EMPLOYED: Advanced ceramics. non- Mr I** flammable polymeric composites for aircraft interiors and floor panels, honeycomb materials fabrication and isothermal glassware pressing. CONVERSION PROJECTS: Obinsk is willing to license its technology or enter into joint ventures with foreign manufacturers in the automobile, marine, ceramic & metal- matrix composites, optical and glassware industries. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: Officials from Obinsk visited the U.S. as a part of the Department of Commerce's SABIT Program in October/November 1995. The enterprise supplied 10% of the materials used in the Buran space shuttle. Enterprise name: OKTYABR PRODUCTION ASSOCIATION LAST UPDATE: November 1995 ALTERNATE NAMES: Proizvodstvennoye Obyedineniye "Oktyabr", POOktyabr. ADDRESS: 623400, Kamensk-Uralskiy, Sverdlovsk Oblast, Russia Tel: (011-7-34378) 3-80-58, 3-16-00 Telex: N/A; Teletype: 348426 or 348413 UTES; Fax: (01 1-7-34378) 3-63-72 E-Mail: N/A GENERAL OVERVIEW: The Oktyabr Production Association is a large aviation electronics enterprise. Its main product has been radio altimeters, but it also has produced ship and flight control computers and radio navigation aids. Its conversion projects are primarily in the area of electronic equipment. PRIMARY BUSINESS: Electronics; SIC U.S. Department of Commerce RDBD 5 - St. Petersburg 3-4 Code: 3553, 3578, 3661, 3812, 3825, 3845 FORMER MINISTRY SUBORDN. : Ministry of the Radio Industry APPROXIMATE EMPLOYMENT: Total 12,000; Date: 1992. PRINCIPAL OFFICERS: Viktor A. Paramonov, General Director Viktor A. Ushkalov, Deputy Gen. Director Vladimir K. Frolov, Deputy Gen. Director Vladimir V. Vershinin, Chief Engineer OWNERSHIP: State-owned YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Airborne radio altimeters, ship computers, digital flight control computers, surface and air radio navigation aids. CIVIL PRODUCT LINES: Airborne radio altimeters for civil aircraft, home radio receivers, tape recorders, and indoor television antennas. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS: Magnetic therapy equipment, security alarms, telegraph communications equipment, bond calculating machines, electricity meters, and multipurpose woodworking machines. HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFO: N/A Enterprise name: SVTYAGA SCIENTIFIC PRODUCTION ASSOCIATION LAST UPDATE: April 1996 ALTERNATE NAMES: Nauchno- proizvodstvennoye obedineniye "Sviyaga", July 1996 NPO Sviyaga, Kazan Sviyaga Electrotechnical Plant, Sviyaga TPO (territorialno-proizvodstvennoye obedineniye). Key facility: Kazan Electrotechnical Plant. ADDRESS: 420107, Kazan, Tatarstan, Russia Ulitsa Sverdlova, 50 Tel: (011-7-8432) 32-76-68,39-94-01 Telex: N/A; Teletype: 224156 LUNA, 224113 LUNA; Fax: (011-7-8432) 36-37- 81; E-Mail: N/A GENERAL OVERVIEW: The Sviyaga Scientific Production Association specializes in producing radionavigation equipment for ships. The association also produces a wide variety of other machinery products, including robots and machine tools, for industrial use. PRIMARY BUSINESS: Ship radio- navigation equipment; SIC Code: 3089, 3429, 3534, 3541, 3542, 3563, 3646, 3651, 3797 FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS Georgiy G. Agadzhanov, General Director A.S. Gilfanov, Plant Director OWNERSHIP: State-controlled YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES Radionavigation equipment for ships CIVIL PRODUCT LINES Equipment for the production and repair of ships, forge- press and metal-cutting machine tools, robots and manipulators, universal-type fittings for the machinery industry, antennas, stereophonic equipment, power lighting installations, equipment for automobile garages, plastic haberdashery articles and sporting goods, decorative garlands, wooden kitchen utensils, television equipment, commercial scales, instruments for the control of lighting, door locks. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED N/A CONVERSION PROJECTS Security/fire signaling devices, electric grills for restaurants. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO. N/A Enterprise name: AEROELEKTRIK JOINT STOCK COMPANY LAST UPDATE: November 1995 ALTERNATE NAMES: Aktsionernoye obshchestvo "Aeroelektrik", Moscow Dzerzhinets Components Plant (Moskovskiy agregatniy zavod Dzerzhinets) ADDRESS 125015, Moscow, Russia Ulitsa B. No vodmitrovskaya, 12 Telephone: (011-7-095) 285-94-50 Telex: N/A; Teletype: N/A Fax: (011-7-095)285-17-25, E-Mail: N/A GENERAL OVERVIEW The Aeroelektrik Joint Stock Company, known prior to May 1993 as the Dzerzhinets Components Plant, manufactures electrotechnical equipment for aircraft and spacecraft. The company also produces pod- mounted gun systems for fixed-wing military aircraft, and helicopters. PRIMARY BUSINESS Electrical equipment; SIC Code: 3489, 3511. 3531. 3546, 3548, 3569, 3621, 3728, 3825, 3829 FORMER MINISTRY SUBORDN. Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS Igor Gaviachev. Marketing representative U.S. Department of Commerce RDBD 5 - St. Petersburg Juh 1** 3-5 OWNERSHIP: Joint Stock Company YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Pod- mounted gun systems for aircraft and helicopters. CIVTL PRODUCT LINES: Electric power generating systems, electric winches, aircraft braking equipment, electric de-icing systems, digital control systems for aircraft electrotechnical equipment, wind-driven electric power generating equipment, welding equipment, automatic test and diagnostic equipment for the service industry, electric hand tools for household use, and cable cars (telphers). KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS N/A HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO N/A Enterprise name: ALL-RUSSIAN SCIENTIFIC RESEARCH INSTITUTE OF RADIO ENGINEERING (VNIIRT) LAST UPDATE: November 1995 ALTERNATE NAMES: Vserossiyskiy nauchno-issledovatelskiy institut radiotekhniki, VNIIRT "SKALA". ADDRESS: 107082 Moscow, Russia Ulitsa Bolshaya Pochtovaya, 22 Tel: (011-7-095)267-66-04, 261-41-72; Telex: N/A; Teletype: 417375 AKRIL Fax: N/A GENERAL OVERVIEW The All-Russian Scientific Research Institute of Radio Engineering (VNIIRT) is the primary Russian designer of ground-based air surveillance radars. It performs scientific research and experimental design work on radars for both the strategic air defense forces and for the ground forces. It has devoted much attention to metric-band (VHF) radars, which have inherent counter- stealth capabilities and are relatively unaffected by meteorological obscuration. VNIIRT's products also have application to civil air traffic control. PRIMARY BUSINESS: Radar design; SIC Code: 3663,3812 FORMER MINISTRY SUBORDN : Ministry of the Radio Industry APPROXIMATE EMPLOYMENT: N/A PRINCIPAL OFFICERS: Yuriy Minayev, General Director Yuriy A. Kuznetsov, General Designer OWNERSHIP: State-controlled YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Gamma- D mobile radar, Kasta-2Ye2 (39N6Ye) low- flying target detection decimetric-band (UHF) mobile radar, metric-band (VHF) ground-based air surveillance radars. CIVIL PRODUCT LINES: Dual-use (military and civil) air surveillance radars. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFO N/A Enterprise name: CENTRAL SCIENTIFIC RESEARCH INSTITUTE OF MACHINE-BUILDING (TsNIIMash) LAST UPDATE: November 1995 ALTERNATE NAMES: Tsentralnyy U.S. Department of Commerce RDBD 5 - St. Petersburg 3-6 July 1996 nauchnoissledvatelskiy institut mashinostroyeniya (TsNIIMash) ADDRESS: 141070, Kaliningrad, Russia (Moscow Oblast), Ulitsa Pionerskaya, 4 Tel: (011-7-095) 513-50-00, 513-50-01, 586-83-90; Telex: 411952 MCC SU: Fax: (011-7-095) 274-00-25; 187-18-88; E- mail: n/a GENERAL OVERVIEW The Central Scientific Research Institute of Machine- Building (TsNIIMash) is one of the primary enterprises dealing with Russian spacecraft and rocket engineering. It conducts system research and development of spacecraft and rocket programs. TsNIIMash is one of the primary facilities for testing spacecraft and spacecraft components for RSC "Energiya" and others. It is also involved in theoretical and experimental research in the areas of aerogasdynamics, heat transfer, thermal protection, static and dynamic strength of boosters and spacecraft. TsNIImash also provides mission control for interplanetary probes, manned space stations and spacecraft. PRIMARY BUSINESS: Space technology; SIC Code: 2819, 2821,3443, 3511, 3569 FORMER MINISTRY SUBORDN: Ministry of General Machine-Building APPROXIMATE EMPLOYMENT Total: 7500; Date: 1995 PRINCIPAL OFFICERS Vladimir Utkin, Director Nikolai Anfimov, First Deputy Director OWNERSHIP: State-controlled (under Russian Space Agency) YEAR ESTABLISHED: 1946 MILITARY PRODUCT LINES Basic, exploratory, and applied research of space and rocket systems; design and evaluation of new systems. CIVIL PRODUCT LINES Research in support of Russian federal space programs; basic, exploratory and applied research of economics and scientific space systems; testing and evaluation KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: TsNIIMash has many test cells and laboratories, including transonic and supersonic wind tunnels, piston gasdynamic facilities, shock tubes, gas dynamic vacuum chambers, electric-arc gasdynamic facilities and plasmatronics that allows for experimentation in all areas of space technology, including endo- and exo- atmospheric flight. A 8,300 cubic meter space simulation facility provides ample room for testing large objects. CONVERSION PROJECTS: More than 10 projects are being worked on in the environmental, medical and high-tech aeronautical fields. HUMAN RESOURCES SUPPORT: Housing, recreation and child-care facilities are provided. Enterprise name: DESIGN BUREAU OF PRECISION MACHINE-BUILDING (KBTM) LAST UPDATE November 1995 ALTERNATE NAMES; Konstniktorskoye byuro tochnogo mashinostroyeniye, K.B Tochmash, NPO Tochnost U.S. Department of Commerce RDBD 5 - St. Petersburg Juh 1** ADDRESS: 1 17342, Moscow, Russia Ulitsa Vvedenskogo, 8 "Spektr" personal computer. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A Tel: (011-7-095) 333-64-35 Telex: N/A; Teletype: N/A Fax: (011-7-095)333-55-13 E-Mail: N/A GENERAL OVERVIEW: The Design Bureau for Precision Machine-Building develops man-portable surface-to-air missiles (SAMs), and is a major developer of medical equipment including pace-makers, laser- based ophthalmic instruments, and bio- feedback relaxation devices. PRIMARY BUSINESS: Surface-to-air missiles; SIC Code: 3553, 3575, 3674, 3812,3842,3845 FORMER MINISTRY SUBORDN. : Ministry of the Defense Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS N/A OWNERSHIP: State-controlled YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: "Strela" SAM (surface-to- air missiles). CTVTL PRODUCT LINES Medical equipment including pace-makers, ophthalmologcal equipment, neuron stimulators, bio-feedback devices, anti- allergenic instruments, and equipment for disinfecting needles. Other products include polychromatic lasers for monitoring ecology and for scientific reserarch, automatic food packaging equipment, universal woodworking machine tools, and the CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFO: N/A Enterprise name: MOSCOW CHERNYSHEV STATE MACHINE- BUILDING PRODUCTION ENTERPRISE LAST UPDATE: November 1995 ALTERNATE NAMES: Gosudarstvennoye moskovskoye mashinostroitelnoye proizvodstvennoye predpriyatiye "V.V.Chernysheva", MPO Chernyshev ADDRESS: 123362, Moscow, Russia Ulitsa Vishnevaya, 7 Tel: (011-7-095)491-58-74, 491-55-44; Telex: N/A; Teletype: 417626 ELIKA Fax: (011-7-095) 490-56-00, 491-55-22 E-Mail: N/A GENERAL OVERVIEW: The Moscow Chernyshev State Machine-Building Production Enterprise produces jet engines for MiG fighter aircraft. Currently, it produces the fourth generation RD-33 turbofan jet engine for the MiG-29, and the TV7-1 17C turboprop engine for the 11-114 commercial airliner. The enterprise also produces a diversified mix of products for agriculture and industry PRIMARY BUSINESS: Aircraft engines; SIC Code: 3496, 3511, 3524, 3553, 3556, 3724 FORMER MINISTRY SUBORDIN. : Ministry of the Aviation Industry U.S. Department of Commerce RDBD 5 - St. Petersburg 3-8 July 1996 APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS Anatoliy Nikolayevich Napolnov, Director OlegN. Tretyakov, Chief Engineer OWNERSHIP: State-controlled. YEAR ESTABLISHED: World War-II era MILITARY PRODUCT LINES R- 27F2M-300 jet engine, and the RD-33 turbofanjet engine. CIVTL PRODUCT LINES: TV7-1 17C turboprop engines, aircraft starter parts, parts and assemblies for equipment used in aviation technology for thermal treating and coating, riveting presses, lapping equipment for rolled ferrous metal, equipment for airport ground servicing, specialized metal- cutting machine tools, automotive winches, shoe repair equipment and other machines for the leather and fur industry, parts for motor-scooter engines, camping stoves, therapeutic equipment for mineral baths, and other medical equipment. KEY TECHNOL OGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS: Boat engines, cultivators, household coffee grinders, garden hand carts HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION The Moscow Chernyshev State Machine- Building Production Enterprise is co-located with the Tushino Machine-Building Design Bureau Soyuz, a developer and prototype manufacturer of aircraft engines. Enterprise name: PULSAR SCIENTIFIC PRODUCTION ASSOCIATION LAST UPDATE: November 1995 ALTERNATE NAMES: Nauchno- proizvodstvennoye obedineniye "Pulsar", NPO Pulsar. Key facilities: Pulsar Plant, ND Pulsar ADDRESS 105187, Moscow, Russia Okruzhnoy Proyezd, 27 Tel.: (011-7-095) 366-52-01, 369-48-62, 369-04-81, 369-03-33; Telex: N/A Teletype: 111529 GIBPJD Fax: (011-7-095) 366-55-83; E-Mail: N/A GENERAL OVERVIEW The Pulsar Scientific Production Association is a major Russian facility for the design, development, and experimental production of semiconductor devices based on germanium, silicon, and gallium arsenide. Pulsar has developed a wide variety of diodes, transistors, and integrated circuits, as well as photolithographic and other types of semiconductor production equipment. PRIMARY BUSINESS: Semiconductors; SIC Code: 3523, 3575, 3621, 3625, 3651, 3674, 3679, 3873 FORMER MINISTRY SUBORDN. Ministry of the Electronics Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS Yuriy P. Dokuchaev, General Director Gennadiy A. Babayan, Plant Director OWNERSHIP: State-controlled YEAR ESTABLISHED N/A MILITARY PRODUCT LINES Semiconductors CIVIL PRODUCT LINES Germanium, silicon, and gallium arsenide diodes, transistors, and integrated circuits, band-pass filters for TV receivers, low-noise amplifiers for satellite communications receivers, satellite dish antennas, electronic wrist watches and clocks, AC electric motors. personal computers, devices and machines for agriculture. KEY TECHNOLOGIES EQITPMFNT U.S. Department of Commerce RDBD 5 - St. Petersburg 3-0 Juh 1** EMPLOYED: N/A CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO: N/A Enterprise name: SAPFIR SCIENTIFIC RESEARCH INSTITUTE LAST UPDATE: November 1995 ALTERNATE NAMES: Nauchno- issledovatelskiy institut "Sapfir", Nil Sapfir. ADDRESS: 105318, Moscow, Russia Ulitsa Shcherbakovskaya, 53 Tel: (011-7-095) 369-30-36; Telex: N/A; Teletype: 207190 SILAN Fax: (011-7-095)365-15-52 E-Mail: N/A GENERAL OVERVIEW: The Sapfir Scientific Research Institute specializes in the development of diodes, transistors, and monolithic and hybrid integrated circuits based on silicon, germanium and gallium arsenide. PRIMARY BUSINESS: Semiconductors; SIC Code: 3674 FORMER MINISTRY SUBORDN.: Ministry of the Electronics Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS: Anatoliy Vasilevich Golomedov, Director OWNERSHIP: State-controlled YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES: Aircraft indicator systems, semiconductors for military systems. CIVIL PRODUCT LINES Diodes, transistors, integrated circuits, aircraft U.S. Department of Commerce RDBD 5 - St. Petersburg indicator systems, and other electronic and semiconductor devices. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS: N/A HUMAN RESOURCES SUPPORT: N/A OTHER RELEVANT INFORMATION: The Optron plant, an experimental plant affiliated with Sapfir, is collocated with the institute. Enterprise name: TUSHINO MACHINE-BUILDING DESIGN BUREAU SOYUZ LAST UPDATE: April 1996 ALTERNATE NAMES: Tushinskoye mashinostroitelnoye konstruktorskoye byuro "Soyuz". ADDRESS 123362, Moscow, Russia Ulitsa Vishnevaya, 7 Tel: (011-7-095) 491-58-65 (Gen. Designer), 491-58-33 (Dpty. Gen. Dsgnr. & head of Marketing), 491-58-01 (Program Mgr.); Telex: N/A; Teletype: N/A; Fax: (011-7-095) 490-21-54; E-Mail: N/A GENERAL OVERVIEW: The Tushino Machine-Building Design Bureau Soyuz develops, tests, and manufactures prototypes of aircraft gas turbine engines and provides support for serial production and maintenance of them. It also develops gas turbine engines for non-aircraft applications, portable power generating units, and other types of industrial machines. PRIMARY BUSINESS Aircraft engine July 1996 3-10 design. FORMER MINISTRY SUBORDN. Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT Total: 1,000; Date: 1993 PRINCIPAL OFFICERS: R.V. Nusberg, General Designer Vladimir N. Ruzin, Deputy General Designer Vyacheslav A. Strashelyuk, Program Mgr., Aleksandr A. Sergeyev, Head of Marketing OWNERSHIP: State-controlled YEAR ESTABLISHED Pre-1950 MILITARY PRODUCT LINES: Soyuz has been associated with the development of gas turbine engines designed by Klimov in St. Petersburg and Tumanskiy (also known as Soyuz) in Moscow. CIVIL PRODUCT LINES: Development of gas turbine engines for aircraft, and for industrial applications, portable power generating units, power tillers with attachments, street cleaning machines, concrete mixers, and woodworking machines. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS N/A HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION The Tushino Machine-Building Design Bureau Soyuz is collocated with the Chernyshev Moscow Machine-building Production Association and functions as its pilot production facility. Enterprise name: OKSID PRODUCTION ASSOCIATION LAST UPDATE: November 1995 ALTERNATE NAMES: Novosibirskoye proizvodstvennoye obedineniye "Oksid", PO Oksid ADDRESS: 630102, Novosibirsk, Russia Ulitsa Kirova, 82 Tel: (011-7-3832) 66-72-34, 66-83-92, 66- 64-83, 66-72-36 (Special Design Bureau), Telex: N/A; Teletype: 1331 1 1 FARAD A Fax: (01 1-7-3832) 66-71-71; E-Mail: N/A GENERAL OVERVIEW The Oksid Production Association, which comprises a special design bureau and a long-established radio components plant, produces mainly capacitors and other electrical components for radio equipment, and consumer products. PRIMARY BUSINESS: Electrical parts, SIC Code: 3069, 3423, 3465, 3469, 3613, 3675 FORMER MINISTRY SUBORDN. Ministry of the Electronics Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS Ivan Stepanovich Anichkin. General Director V. T. Metelev, Director of the Special Design Bureau OWNERSHIP: State-controlled YEAR ESTABLISHED I950's MILITARY PRODUCT LINKS U.S. Department of Commerce RDBD 5 - St. Petersburg 11 Juh 1** Capacitors. CIVIL PRODUCT LINES: Aluminum, niobium, and tantalum capacitors, resistors, transformers, coils, fuses, and plastic articles for power distribution apparatus; Consumer goods including scales, hair curlers, batteries, electric soldering irons, accessory articles for automobiles, household radioelectronic apparatus, and toys. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: N/A CONVERSION PROJECTS N/A HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO N/A the control systems. The bureau also designs electrohydraulic systems for diesel engines, and control systems for industrial power installations. PRIMARY BUSINESS: Aircraft engines and engine parts; SIC Code: 3724 FORMER MINISTRY SUBORDIN. : Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT: N/A PRINCIPAL OFFICERS: A. Kulkov, Chief Designer OWNERSHIP: Joint Stock Company YEAR ESTABLISHED: 1947 Enterprise name: OMSK MACHINE- BUILDING DESIGN BUREAU JOINT STOCK COMPANY LAST UPDATE: November 1995 ALTERNATE NAMES: Aktsionernoye obshchestvo "Omskoye mashinostroitelnoye konstruktorskoye byuro". ADDRESS: 644116, Omsk, Russia Ulitsa Gertsena, 312 Tel: (011-7-3812) 21-62-38, 22-94-40, 29- 14_40, 24-04-24; Telex: N/A; Teletype: 228 SILA; Fax: N/A; E-Mail: N/A GENERAL OVERVIEW The Omsk Machine-Building Design Bureau Joint Stock Company designs and develops automatic control systems for aircraft gas turbine engines, as well as electronic, hydromechanical, and optical components of MILITARY PRODUCT LINES: Control systems and components for gas turbine engines installed in aircraft used for military transport including the An-22, An-72A, An- 124 (Ruslan),the Ilyushin-76MD, the Mi-26 and other helicopters. CIVIL PRODUCT LINES: Electronic, hydromechanical, and optical components of gas turbine engine control systems including gear, vane and centrifugal pumps, electropneumatic transducers, meters, actuators, sensors, governors, valves, distributors, pressure relays, airborne indicators; food-related washing, cleaning, and sorting machines and other equipment for canning and preserving food; components for motor vehicle refuelling stations. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED: Titanium alloys, high- temperature graphite, graphitized and erosion-resistant coatings. CONVERSION PROJECTS: N/A U.S. Department of Commerce RDBD 5 - St. Petersburg 3-12 July 1996 HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFO: N/A Enterprise name: GORIZONT PRODUCTION ASSOCIATION LAST UPDATE: November 1995 ALTERNATE NAMES: Rostovskoye proizvodstvennoye obedineniye "Gorizont", PO Gorizont. Key facility: Gorizont Design Bureau ADDRESS: 344068, Rostov-na-Donu, Russia Prospekt Oktyabrya, 32 Tel: (011-7-8632) 31-53-80, 31-53-81, 38- 67-33; Telex: N/A;Teletype: 123 1 1 18 MRJS; Fax: N/A; E-Mail: N/A GENERAL OVERVIEW The Gorizont Production Association primarily produces radars and navigation equipment for shipboard use. Two models of maritime radars, the Nayada-5 and the Yenisey, went into production in 1991 in a joint venture with a British firm and have been produced for domestic use and export. Gorizont plans to convert some of its space to the production of medical equipment and household electronics. PRIMARY BUSINESS: Ship radars; SIC Code: 3444, 3561, 3625, 3645, 3812, 3812, 3944 Viktor A. Spiridonov, General Director OWNERSHIP: State-controlled YEAR ESTABLISHED N/A MILITARY PRODUCT LINES Ship radars and navigation equipment for military vessels. CIVIL PRODUCT LINES Ship radars and navigation equipment, accessories and fittings for shipboard instrumentation, audio systems, medical equipment, musical instruments (percussion), household lighting articles, mechanical equipment for restaurants, household articles powered by electric motors, knives, toys and decorations KEY TECHNOLOGIES/EQUIPMENT EMPLOYED N/A CONVERSION PROJECTS Household electronics products and medical equipment. HUMAN RESOURCES SUPPORT N/A OTHER RELEVANT INFORMATION In 1991, Gorizont formed ajoint venture with the British firm Kelvin Hughes to produce ship radars, whereby Kelvin Hughes would supply electronic parts. Enterprise name: SARATOV ORDZHONIKIDZE PRODUCTION ASSOCIATION LAST UPDATE: November 1995 FORMER MINISTRY SUBORDN. : Ministry of the Shipbuilding Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS ALTERNATE NAMES: Saratovskoye proizvodstvennoye obedineniye "S. Ordzhonikidze", Saratov PO Ordzhonikidze ADDRESS 410005, Saratov. Russia U.S. Department of Commerce RDBD 5 - St. Petersburg 3-13 Juh 1** UlitsaB.Sadovaya, 239 Saratov Ordzhonikidze Production CONVERSION PROJECTS: N/A Association HUMAN RESOURCES SUPPORT: N/A Tel: (011-7-8452) 24-21-32, 91-82-01, 24- 49-96; Telex: N/A; Teletype: 241 144, OTHER RELEVANT INFO: N/A 241323 OKA; Fax: (011-7-8452) 24-37-56; E-Mail: N/A GENERAL OVERVIEW: The Saratov Ordzhonikidze Production Association produces aircraft instruments, including gyroscopes, analog computers, and a variety of gauges and indicators. PRIMARY BUSINESS: Aircraft instruments; SIC Code: 3634, 3679, 3812, 3823, 3825, 3944 FORMER MINISTRY SUBORDN. Ministry of the Aviation Industry APPROXIMATE EMPLOYMENT N/A PRINCIPAL OFFICERS: Adolf Trofimovich Kazakov OWNERSHIP: State-controlled YEAR ESTABLISHED: N/A MILITARY PRODUCT LINES Aircraft instruments. CIVIL PRODUCT LINES Aircraft instruments including azimuth, distance, banking, and pitch indicators, analog computers, gyroscopes, altimeters, linear and angular acceleration gauges and oscillographs. The association also produces other electrical measuring instruments and products, and consumer goods including mechanical juicers, toys, and souvenirs. KEY TECHNOLOGIES/EQUIPMENT EMPLOYED N/A U.S. Department of Commerce My 1 996 RDBD 5 - St. Petersburg 3-14 CHAPTER 4 - INVESTING IN RUSSIAN DEFENSE CONVERSION: OBSTACLES AND OPPORTUNITIES I. INTRODUCTION In June 1992, the United States and the Russian Federation declared their intention to make cooperation in advancing defense conversion a high priority. Both countries recognized that Russian defense conversion was key to building a more economically prosperous world and assuring world peace. Among other things, they agreed to facilitate the exchange of information on conversion enterprises and to disseminate that information to potential business partners. The Russian Defense Business Directory was designed as a first step towards meeting that commitment. A. DEFENSE CONVERSION BACKGROUND 1 . Definition "Defense conversion," in the view of the U.S. component of the Defense Conversion Committee, is the transfer of defense production capabilities to non-defense production, either non-defense industrial products (e.g. pumps and valves) or consumer goods. However, according to the Law on Defense Conversion of the Russian Federation, the Russia has a much broader definition, which includes the possibility of a plant maintaining its defense production while expanding its non-defense production for other purposes, including the generation of hard currency exports. (See section C. 1 .a. for a discussion of this issue.) 2. Overview of Defense Industry The former Soviet Union developed an immense defense industrial base with enterprises scattered throughout the various republics. About 70 percent are located in the Russian Federation. Russia contains more than 100 major defense plants; thousands of subsystem, component, and materials producers; and more than 1 ,000 military research, development, and test facilities. At its peak in the late 1980s, Russian defense industry employed some five to seven million workers, out of a total industrial labor force of 25 million. In addition to producing weapons, the defense industry has long been a large producer of civilian goods, producing all of the former Soviet Union's radios, televisions, VCRs, most of the refrigerators and washing machines, as well as a large share of the country's production equipment. Defense enterprises in the former Soviet Union differ from their Western counterparts in several ways. They tend to be larger than plants in the West which produce similar items. The plants typically include on-site facilities for much of the component fabrication, which in the West would be subcontracted to other companies. Former Soviet defense enterprises also have traditionally had infrastructure responsibilities not found in the West, including schools, housing, and other social and cultural services. In addition, because central government organizations historically assured Uiat defense enterprises received U.S. Department of Commerce Jvilv 1^ RDBD 5 - St. Petersburg 4-1 priority access to available supplies, investment, engineers and distribution of production, enterprise managers never learned to fend for themselves. Current Situation in Defense Industry Thus far, progress in defense industry conversion has been slow. Many defense enterprises are barely surviving due to cuts in weapons orders and insufficient funding to shift to civil production. Defense enterprises continue to be stymied, as they have been for the past several years, by a vast range of problems with respect to conversion. Most plant managers are faced with implementing massive structural changes in the management and operation of their plants and relationships with suppliers. The majority are having limited success, given their lack of expertise with the new products, the chaos in the economy, their lack of skill in dealing with a quasi-market environment, the difficulty of establishing new supply chains, and the lack of Western investment or domestic financial support for costly re-tooling. Meanwhile, defense plants have built up huge bank debts, as well as debts to other enterprises, while attempting to meet their payrolls and continue operations. Russian leaders have recognized the high cost of conversion,but they are unable to provide the magnitude of investment resources necessary to assist defense enterprises undergoing conversion. Although their expectations have dropped considerably, Russian leaders continue to count on Western investment and foreign assistance to increase civilian production in defense enterprises. In the meantime, however, the Russian Federation is pursuing arms sales as a means to earn hard currency-partially to finance defense conversion. Many Russian defense enterprises now are in the process of privatization. The Russian Federation will retain possession of those weapons production facilities it deems critical to future weapons production, but the government has adopted a decree permitting 80 percent of all defense enterprises to privatize. The government retains the right to retain ownership of a significant portion of the shares in privatized defense enterprises. A number of large defense enterprises have begun the privatization process. An important side-effect of the privatization process in the defense sector has been the creation of numerous small and medium-size private companies from the bodies of large defense enterprises. (See Chapter 6 for a summary of the privatization program.) B. GENERAL OBSTACLES There are numerous studies and case histories available for the U.S. businessperson considering investment in Russia. Therefore, the following discussion only highlights some of the more significant generic barriers to doing business in Russia. The discussion is designed to alert the individual to some of the factors that he or she should address when developing a proposal. Good business practices require careful evaluation of all the elements; detailed knowledge of whom one is doing business with, and a clear understanding of the risks. This is especially true in the constantly evolving Russian commercial environment. The U.S. - Russian Bilateral Investment Treaty (BIT), ratified by the U.S. Senate on August 1 1 , 1992 but still awaiting ratification by the Russian parliament, is U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 4-2 intended to alleviate many of these generic obstacles. (See Chapter 6 for details on the BIT.; In 1992, the Commerce Department established a business information service "BISNIS to assist U.S. investors (phone: (202) 482-4655; fax: (202) 482-2293; E-Mail: [email protected]). The Department strongly encourages interested parties to contact this office as a first step, and to see Chapter 7 for other possible sources of assistance. In addition, the U.S. -Russia Business Development Committee includes five additional working groups to foster increased commercial cooperation between U.S. and Russian firms. These working groups include: Foreign Trade Regulations, Investment and Commercial Projects, Industrial Cooperation and Trade Promotion, Business Facilitation, and Standards. A complete listing of all Working Groups and points of contact are also contained in Chapter 7. 1 . Infrastructure Authorities commonly cite infrastructure problems in die areas of telecommunications and transportation as major obstacles to doing business in Russia. Although Western firms have announced plans to assist in the development of a modern telecommunications system in Russia and the other Newly Independent States (NIS), communications limitations will continue to hamper business activity for some time. Transportation systems in Russia are inadequate, both for the distribution of goods and services, as well as the movement of people. 2. Laws and Regulations Among the most serious obstacles inhibiting Western investment is the fluid situation in government regulations affecting business. Although the Russian legal system has abandoned many of the rules and procedures of the Soviet system, it continues to develop the laws and institutions necessary for a market economy to function, such as guarantees and definitions of property rights. Today, there are bodies of conflicting, overlapping, and rapidly changing laws, decrees, and regulations affecting both domestic and international commerce. As a result, these laws are inadequately communicated, understood, and enforced. Therefore, U.S. business persons are advised to obtain legal counsel that is familiar with the dynamics of Russian legislation. The Department of Commerce has a legal text service available dirough the National Technical Information Service (see Chapter 9). One of the most pressing concerns for Western investors is property ownership. Existing Russian laws on ownership regarding ownership by Western investors of land or buildings are unclear. Without definitive ownership rights, some Western firms have declined or even refused to do business. Regional governments sometimes complicate business operations by imposing laws and regulations mat contradict federal ones. Moreover, local legal and regulatory regimes vary widely regarding foreign trade and investment ties, although more and more are striving to improve their regions' business climate. Russian import taxes also may impede Western exports. Moscow raised import tariffs to average rates of 13-15 percent, with sharply higher rates on mam consumer and U.S. Department of Commerce Julv I1** RDBD 5 - St. Petersburg 4-3 manufactured goods. In addition, many luxury goods are subject to an excise tax that in some cases is set at nearly 100 percent. Thirdly, most Russian imports are liable to the 23 percent VAT, which is levied on the value of the product plus any import tariff and excise tax. Russia, however, provides a number of exemptions to import taxes. For example, imports of food and other necessities are not subject to the VAT. Moreover, Russian officials may soon offer additional import tax breaks to foreign firms that boost their direct investments in Russia. U.S. companies should check with BISNIS for the most recent information. 3. Financial Considerations Russia's nascent banking and financial infrastructure, and high inflation often create difficulties for some businesses operation in Russia. The situation is improving steadily, however, and few firms are unable to find ways around these difficulties—although at times it requires a great deal of persistence and creativity. These issues have also complicated the ability of Western firms to repatriate profits. It is advisable to determine payment options and profit repatriation strategies prior to investment. The Finance and Counter trade Division in the U.S. Department of Commerce [Room H-l 104, phone: (202) 482-4434, Fax: (202) 482-5702] offers advice on methods and techniques that can be used, given that Russian enterprises frequently lack hard currency. 4. Materials and Supplies Maintaining adequate sources of materials and supplies will be difficult in light of Russia's current political and economic climate, particularly in view of the breakdown of the distribution system throughout Russia and the NIS. Although supply problems did exist under the command system, defense facilities could seek help from their ministries and other bureaucratic oversight organizations when problems arose. Now that the command system has been dismantled, supply disruptions have increased and managers are generally on their own to devise solutions. 5. Office Facilities and Visa Problems U.S. firms attempting to do business in Russia commonly complain about the difficulties in obtaining visas and adequate office space. The bureaucracy and delay involved in obtaining visas are a particular concern for smaller firms which cannot afford the high cost of establishing a resident office. For those firms with enough resources, office space often is not readily available. The leadership of both countries recognizes these problems and are working to resolve them. The Department of Commerce has also established American Business Centers (ABCs) in several cities of the NIS. A Trade and Investment Center is currently operating at the Commercial Section of the U.S. Embassy in Brussels. The ABCs offer a variety of services to visiting business persons for a small fee. 6. Culture Other obstacles faced by many Western companies engaging in trade and investment in Russia include the lack of a business culture and misunderstandings on the part of Russians U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 4-4 regarding Western companies. Many Russians still lack even a basic knowledge of how markets operate, from the role of profits to proper business ethics. Russians often view Western firms as having very deep pockets. As a result, U.S. companies may find themselves significantly overcharged for services. In addition, this kind of business environment engenders illegal activity of every sort, including fraud. U.S. companies must exercise extreme caution in all their business ventures in Russia, taking care to investigate the legitimacy of partners and, in the absence of legal protections, which are taken for granted in the West, to obtain guidance or representation in the drafting of contracts. 7. United States Antidumping Laws While more aptly characterized as a benchmark for, than as an "obstacle" to, increased trade, U.S. and Russian businesses must understand and comply with various U.S. laws when structuring business deals. For example, U.S. law provides for the protection of American manufacturers from unfair foreign trade practices. Manufacturers who believe that foreign competitors are "dumping" merchandise in the United States or are being subsidized by foreign governments may file for relief with the U.S. Department of Commerce's International Trade Administration (ITA) and the U.S. International Trade Commission (ITC). "Dumping" generally refers to the selling of goods in the U.S. market at prices lower than the prices at which comparable goods are sold in the domestic market of an exporter. These sales must cause or threaten material injury to a competing U.S. industry. "Subsidies" are direct and indirect grants on the production or export of goods. They may occur in many forms, including direct cash benefits, credits against taxes, and loans with artificially low interest rates. The U.S. antidumping legislation provides for duties to be levied on goods "dumped" on the U.S. market in order to discourage the sale of merchandise in the United States at "less than fair value" where such sales cause or threaten "material injury" to a U.S. industry. For more information, contact ITA's Office of Investigations [phone: (202) 482-5403. fax: (202)482-1059]. C. BARRIERS UNIQUE TO DEFENSE CONVERSION Although the Russian Federation relies heavily on Western investment to help fund the defense conversion program, serious problems hinder the efforts of Western investors who want to work with defense enterprises. Some of the problems are caused by contusion over who is authorized to make decisions over enterprises and sometimes lack of interest on the part of some local enterprise managers. Misunderstandings between Western firms and Russian enterprise directors have fueled the spread of rumors and convoluted excuses to explain apparent failure. The problems discussed below are representative of those affecting all potential Western investors in Russian defense enterprises. 1 . Authority U.S. Department of Commerce July l1^ RDBD 5 - St. Petersburg 4-5 The ultimate authority to approve or disapprove a deal with a Russian defense enterprise depends on the situation of a given enterprise. The central government previously had responsibility for all such actions because, through the former Russian Ministry of Industry, it owned nearly every defense enterprise in Russia. Today, however, the lines of ownership are not so clear. Privatized enterprises have the right to make their own decisions and other defense enterprises now are at least nominally the property of the Russian State Property Committee. The successor to the Ministry of Industry, the State Committee for the Defense Sectors of Industry now the Ministry of Defense Industry, also continues to have influence over some plants. People experienced in doing business in Russia have frequently suggested that the lines of authority with any potential partner be thoroughly investigated and that the Russian partner in a business transaction be responsible for obtaining the necessary Russian government approvals. Lacking guidance from the central government, defense industrialists as well as local and regional officials are increasingly asserting their own autonomy and independently seeking foreign aid and investment. Regional and city governments and defense industrial managers and apparatchiks have created defense conversion support groups and have increased their role as players in the conversion process. Clearly, U.S. industry needs to be extremely cautious in negotiating business arrangements, ensuring that they have consulted with all the applicable and ultimate authorities. These layers of authority have presented formidable obstacles. In addition to the State Committees on the Defense Sectors of Industry, other central government authorities involved in conversion policy include: the Ministry of Economics, Ministry of Defense, Ministry of Foreign Affairs, Ministry of Foreign Economic Relations, Ministry of Higher Education and Science, and the Interdepartmental Analytic Center. (See Chapter 10 - Russian Government Authorities Involved in Defense Conversion.) 2. Management Practices Successful commercial development and conversion will ultimately depend on the ability of enterprise managers to break with past practices. Defense enterprise managers will find that most of the management practices developed under the planned economy of the former Soviet Union will be of little use in a market economy. Under the Soviet system, Managers were primarily concerned with meeting a production target assigned by central planning authorities who judged performance by indicators such as percentage of plan fulfilled or actual output level. Such criteria caused distortions and inefficiencies as managers sought to maintain output at the expense of quality, investment in new technology, and labor efficiency. Enterprise managers had little knowledge of or concern for the actual costs of making their products. The state routinely confiscated profits above state-set levels while making up shortfalls in profits leading the enterprise manager to virtually disregard the costs of production. U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 4-6 Because of the high priority given to national defense, defease industries received the highest quality raw materials and had preferential access to the transportation and distribution networks for delivering materials. At the same time, defease enterprise managers were lauded by the central authorities for their management abilities, a factor that makes these managers less willing to change their practices to meet market economy needs. The central authorities told enterprises who would provide their supplies and to whom they were to deliver their product. Central authorities rather than market forces determined the prices for products delivered from the plant. Consequently, managers had little knowledge or concern on how to price their products. Managers treated labor as an inexhaustible commodity, and there were no incentives to develop an efficient work force or to economize on labor. Thus, managers tolerated indifferent labor discipline, poor attendance, high rates of alcoholism, and theft from the shop floor. Soviet managers typically did not replace equipment until it became obsolete, and on occasion, they sequestered and stockpiled replacement equipment without putting it into use. They resisted installing new equipment because of the resulting downtime, and central planners frequently discouraged such modernization by failing to lower the plant's production target for the period involved. 3. Inter-enterprise Debt Many defense plants have remained afloat by relying on Central Bank credits and by running up debts with other enterprises. Financially strapped enterprises could not pay their suppliers which created a chain reaction of unpaid debts that reverberated throughout the entire industrial sector. 4. Resistance to Change Some defense industry managers and workers are still resistant to the idea of conversion. The Russian Federation is determined to continue some military production, albeit at a greaUy reduced level, and some enterprise managers hope to gain those contracts and continue to produce military hardware, thus avoiding conversion. Others are not convinced that conversion is necessary, believing that Russia eventually will abandon defense conversion and economic reform and that they again will be required to produce weapons. In addition, some defease industry employees oppose conversion because defense production was traditionally viewed as the more prestigious sector of the economy. Nevertheless, their resistance has weakened over the past few years as die special privileges associated with defense work— higher wages, special bonuses, and awards— have disappeared. Recently, in fact, wages at defense plants have become lower than those at U.S. Department of Commerce July 1^> RDBD 5 - St. Petersburg 4-7 other industrial enterprises. Another aspect that could cause problems in the conversion process is the possibility of unemployment and displacement of persons caused by the downsizing of defense industry. Since the Russian Federation previously adhered to a policy of near full employment, it has little experience with the demands associated with the large scale retraining and job placement of defense industry employees. 5. Infrastructure/Social Support Three major infrastructure issues serve as barriers to defense conversion: 1) social services associated with employment; 2) difficulty in industrial conversion; and 3) environmental and occupational safety hazards. Besides providing employment, defense facilities also have been responsible for supplying numerous other social infrastructure benefits including: housing, schools, day care, medical, and other community support functions. Many enterprises have been kept in operation through subsidies because of the social necessity of these services. Currently, some regions are in the process of transferring responsibility for such services to the local government, although plant managers often feel responsible for their workers and have been reluctant to give up responsibility for these services-particularly since local authorities are struggling to find a way to finance them. The Privatization decree instructs Russian enterprises not to include social and cultural infrastructure items when placing a value on the enterprise's assets. Conversion projects may continue to provide employment for a number of these people; however, many are at risk of losing not only their jobs, but also their basic needs (i.e. , shelter). Due to the housing shortage, as well as the lack of a private housing market, many Russians have no means of finding alternative housing. Again, defense facilities will be particularly hard hit because of the number of employees that they currently sustain. Thus, U.S. businesses need to be aware of and learn about these potentially overriding considerations in developing conversion proposals, and to include perhaps provisions for temporarily sustaining certain aspects of the social support system. A second physical infrastructure barrier to defense conversion is the conversion process in and of itself. The experience of defense industry enterprises around the world indicates that attempts to re-tool military production lines to produce civilian goods are frequently unsuccessful. In the United States when defense orders fall, defense firms usually become smaller, sell out to or merge with another firm, or go out of business. Commercial markets are significantly different from the defense customers that managers have learned how to satisfy in such areas as cost and quality requirements, maintenance and service, marketing and supplier networks, the length of production runs, and the demands for . technology. People, physical equipment, buildings, and land are flexible and adaptable; institutions, management, and organizations are rigid. The general assessment of several experts on Russian defense conversion is that it will be difficult to convert an entire existing facility to civilian production at one time. Potential joint venture partners and other investors may be more successful in targeting a specific portion of the production line or "corner" of the plant for a project. Some have even U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 4-8 suggested that successful conversion could involve establishing a new organization or building a new facility near the existing one and staffing it selectively from the existing enterprise. Decisions on how to structure a specific transaction, how to finance it (e.g. , pursue a joint venture, acquire an equity interest in the enterprise, lease the facility;, and where to market (e.g., for the Russian industrial and consumer market, for export to foreign markets) are best left to the parties to the transaction and what the Russian Federation will allow in the case of heretofore state-owned enterprises. A third infrastructure factor would be the current and looming environmental and occupational safety hazards associated with many defense facilities. Defense plants have a disproportionate share of heavy industrial waste problems, and many sites are already severely contaminated. Western firms may not want to become responsible for the extremely high cost of cleaning up these sites. In addition, they may not want to expose their workers to the potentially harmful side effects of these polluted environments. 6. Divergent Expectations In recent years, a host of Western investors have come to Russia to explore possibilities for investment or cooperation with local defense enterprises. However, relatively few deals have actually been concluded. Problems between Western investors and Russian defense enterprise directors stem from a number of factors, some related to the expectations of Western investors and others related to the expectations—or lack thereof- of Russian managers. Sharply conflicting expectations surface when Western investors run across enterprise directors who have no interest in conversion projects or foreign cooperation in general. According to articles in the Russian press, some enterprise directors are not interested in conversion projects at all because they expect a return to the "old days" and want to be prepared again to produce arms. Western firms interested in these facilities will have to wait for new management. Russian officials, both from the government and from defense industry, take great pride in the capability and advanced technology of Soviet-designed weapons. Russians typically regard their defense industry as the most technologically advanced sector of the economy and as capable of matching or exceeding the West. As a result. Russian defense industry managers generally seek Western investment to help them produce a high-tech product-most likely closely related to their previous military production— for export. Western business persons, on the other hand, are frequendy interested in a project to produce civilian goods for the sizeable Russian market and frequendy regard Russian technology as considerably out-of-date. Another source of conflicting expectations surfaces when Western firms appear, in Russian eyes, to be going after the "crown jewels" of a particular enterprise. Several Russian enterprise directors and academics believe that Western business persons are interested only in stealing their advanced technology and state secrets radier than engaging in real cooperation. Thus, U.S. companies will find that some potential partners harbor a great deal of suspicion regarding American motives. In a typical scenario, a Western firm will propose a joint venture with a profitable division of an otherwise-unprofitable enterprise. Some enterprise directors balk at Uiis approach because it would mean during U.S. Department of Commerce Julv l^ RDBD 5 - St. Petersburg 4-9 managerial control of this division with the new joint venture. According to a representative of the State Committee of the Defense Sectors of Industry, some managers are refusing to relinquish control over their best divisions because they would be left managing a struggling complex of little real value. The enterprise director prefers to talk about deals with his less-attractive divisions in hopes of boosting their value. The Western investors, not surprisingly, are less interested in such proposals. Despite these obstacles, deals can and are being made, but successful negotiations require imagination, persistence, and demonstrations of confidence and genuine interest in mutual benefits. U.S. and Russian business persons need to understand, yet quickly get beyond, certain stereotypical criticisms: Russian enterprise managers frequendy complain that American business persons are interested only in "kicking the tires" rather than discussing business deals seriously. On the other hand, Western business persons complain that the Russian "projects" they are asked to invest in are merely thoughts or concepts at best. This Directory can help U.S. businesses learn about Russian enterprises and identify those of interest. Before traveling to Russia, however, the U.S. companies might well want to communicate their interest and ask whether the enterprise has prepared a business plan providing the detailed information typically required before businesses and financial institutions in the West engage in serious negotiations. If the enterprise has not yet prepared such a plan, there are several organizations in Russia that can assist the enterprise, including the DOD-funded International Executive Service Corps (IESC). IESC Defense Conversion teams are located in Nizhniy Novgorod and Moscow. See Chapter 7 for points of contact, etc. Once business plans have been prepared, Russian enterprises can more reasonably anticipate serious business discussions, particularly with the Western firms that will have previously noted their interest. D. OPPORTUNITIES 1 . Quantitative and Qualitative Factors Several positive factors regarding the Russian economy enhance the potential benefits from investments in Russia. First, the sheer size and scope of the Russian market provides opportunities for a wide variety of products. The total Russian population is approximately 150 million. It is well known that Russian consumers were deprived of many basic consumer goods and are now eager to acquire Western products. Although defense conversion may not provide immediate availability for some of these products, the channeling of industrial productivity to non-defense related items will provide a myriad of opportunities for a variety of U.S. businesses. Second, by Western standards, the Russian labor force is generally considered to be well- educated and the defense industries have extremely well qualified, technical personnel. In addition, labor costs are relatively inexpensive for the level of education associated with work performed in high-tech defense sectors. Third, Russian defense enterprises have an overabundance of plant capacity. Excess plant U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 4-10 capacity resulting from severe cutbacks in defease orders has left many plants underutilized, providing a commercially attractive aspect to an otherwise negative infrastructure outlook. Defense plants also tend to have some of the most sophisticated manufacturing equipment available in Russia. 2. Areas of Qualitative Russian Advantage1 In 1990, the Department of Defense and the Department of Commerce co-chaired an Interagency Technology Assessment Group (ITAG) to develop a list of technologies where it was then estimated that the former Soviet Union led Western accomplishments. The technologies were measured in scientific (mathematical or physical) terms, or in business terms (cheaper to manufacture, less labor-intensive, etc.), or both. To emphasize that there are wide-ranging opportunities for those who persist in working through the obstacles discussed above, listed below are the technologies identified in the ITAG report, Soviet Commercial Technologies. Chemical/Allied Products (SIC 28) o Aluminum Oxide Production Processes o Lasant Materials (Lasers) o Polyurethane Compounds o Self-Propagating High-Temperature Synthesis o Synthetic Rubber Production Processes o Turbulent Reactor Rubber and Miscellaneous Plastics Products (SIC 30) o Carbon Adhesives o Carbon-Carbon Products o Componers o Rolivsans Thermosetting Cast Resins Primary Metals Industries (SIC 33) o Dynamic Compaction Synthesis o Elastomeric Roll Forming of Sheet Metal o Filament Winding of Thick Section Composites Fabrication Processes o Impulse Processing Method o Plasma-Mechanical Metal Processing i Derived from Soviet Commercial Technologies. Interagency Technology Assessment Group. I S Department of Commerce, Office of Foreign Availability, September [990. This document is available through the National Technical Information Service, (703) 487-4650. Ask for Document Number PB- ADA-227672. U.S. Department of Commerce July l1^^ RDBD 5 - St. Petersburg 4-1 1 o Vacuum Processing of Steel with Synthetic Slag and Inert Gases o Weldable Aluminum-Lithium Alloys Fabricated Metal Products (SIC 34) o Rotary-Planetary Mill Machining o Small Nuclear Power Reactors Industrial/Commercial Machinery and Computer Equipment (SIC 35) o Diesel Engines o Fiber Optics Module for Automatic Control Systems o Multiple-Reflection Optical Systems o Waveguide Holograms Electronic and Other Electrical Equipment/Components (SIC 36) o Disk Explosive Magnetic Generators o Explosive Magnetohydrodynamic Generators o High Brightness Negative Ion Source o High Power Gas Lasers o High Power RF Heaters for Ionospheric Modification o High Power RF tubes o Laser Instrumentation o Magnetic Flux Compression Generators o Microgravity-Processed Ultra-Pure Semiconductor Single Crystals o Pulsed Power o Pulsed Wave De-icing/ Anti-Icing Equipment o Spatial Light Modulators o Tacitrons o Vacuum Microelectronics Transportation Equipment (SIC 37) o Cryogenic Fuel Aircraft Engines o Fan-Prop Aircraft Engines o Gas Turbine Helicopter Engines o Wing with Internal Framework (Lattice Control Surface or Grid Fin) Measuring. Analyzing, and Controlling Instruments: Photographic. Medical. Optical (SIC 38) o Biochrome Films o Diamond-Coated Surgical Instruments o Homosorption Filter Technology o Jet Injection Equipment for Immunizations o Lidar Remote Sensing U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 4-12 o Microstructure Laser Devices o Performance Enhancement Electrical Devices o Physiological Measurement Devices o Pseudorandom Noise-Coded Waveform Processing o Residual Stress Engineering Measurement Devices o Vaccine Inhalator Devices Transportation Services (SIC 47) o Space Launch Services o Commercial Experimental Payload Services Engineering. Accounting. Research, Management and Related Services (SIC 87) o Magneto hydrodynamic-Accelerated Simulation 3 . Encouraging Perspectives Eugene K. Lawson, President, U.S. -Russia Business Council, and former Vice Chairman. Eximbank, offered the following perspective as encouragement to U.S. firms to get involved in business in Russia while participating in OPIC's March 1993 Conference on Investment Opportunities in Russia: a. Largest untapped market in world resources - Russia represents the world's largest untapped market for natural resources (e.g. , timber, minerals and energy), production resources, (e.g., transportation), investment opportunities, and a highly educated, talented work force. b. Natural trading partners - Russia and the U.S. , effectively bordering on two oceans, have resources and industrial capacity the other can use, and enterprising people who can make this happen. c. We like each other - There is a mutual and enduring respect and admiration between the people of both countries. d. Cold, not hot, war - Remember, our two countries have never fought against each other; it was a cold, not hot, war they engaged in for much of the previous 45 years. e. Pent-up consumer demand - The needs and preferences of individuals and families in Russia have only recendy begun to acquire greater emphasis and priority. This is similar to, but far greater in scope than, die consumer-driven actions and priorities in the U.S. in the late 1940s. f. Room for growth in international trade - The number ol "joint ventures between U.S. and Russian entities increased from about 40 in 1989 to approximate!) 872 by 1993, and dtere is room for much more growth. U.S. Department of Commerce Julv l1** RDBD 5 - St. Petersburg 4-13 g. U.S. is #1 investor in the new Russia - The U.S. is the number one investor in the new Russia, measured in numbers of joint ventures and actual monetary units. (See charts on following pages.) h. No reason why U.S. cannot emerge as Russia's largest trading partner - The foregoing suggests that there is no reason why the U.S. cannot eventually become Russia's largest trading partner. i. Get outside of Moscow - Look at the spontaneous growth of capitalism and privatization at the regional and local level throughout Russia. j. U.S. financial institutions have room for growth of credit in Russia - European financial institutions have already extended their available credit, but U.S. financial institutions continue to have credit available for business in Russia. 4. Direct Investment Activity in Russia Estimates of the amount of foreign investment in Russia vary widely. According to Goskomstat, Russia accumulated foreign investment of about USD 4 billion by the end of 1994, representing 16,036 firms with foreign participation. Goskomstat puts a foreign direct investment in 1994 at USD 1 billion. Portfolio investments estimated at USD 200 million. About 50 percent of 1994 foreign investment was in the country's fuel industry. COUNTRY DATA1 Profile Population: 148,365,800 people (January 1995) (Source: Russian State Committee on Statistics) Population Growth Rate: 0 percent (Source: Embassy Estimate) Religions: Russian Orthodox, Islamic, Jewish, Catholic, Protestant, Buddhist, other. Government System: Federal with 88 republics, provinces, and regions with varying degrees of autonomy. Languages: Russian (official), over 140 other languages and dialects. Work Week: 40 hours per week. Trade (Billions of USD) 1994 1995 Total Country Exports 43.900 47.100 Total Country Imports6 33.100 34.500 U.S. Exports to Russia7 2.579 2.837 U.S. Imports from Russia7 3.235 5.000 U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 4-14 Domestic Economy (Figures in U.S. Millions $ unless noted) 1994 1995 19963 GDP (Trillion nominal rubles) 630 1,450 GDP Growth Rate -15% -9% GDP Per Capital (thousand rubles) 4,256 9,797 Government Spending as Percent of GDP 37% 33% Inflation 878% 303% Unemployment 7.1 7.9 Foreign Exchange Rate (USD billion) 4.0 2.6 Average Exchange Rate 2,205 3,550 Foreign Debt (USD billion) 80 130 Debt Service Ratio (before rescheduling) 27.4 24.4 U.S. Economic/Threat Reduction Assistance 1,611 343 Source: Russian State Statistics Committee (GOSKOMSTAT) 2The rapid depreciation of the ruble in 1994 and early 1995 makes it meaningless to delineate this data in dollar terms. 3Figures for 1996 cannot be predicted with any degree of reliability. 1995 figures are U.S. Embassy or officials estimates. 4Millions of U.S. dollars. In addition, 1.2 billion U.S. dollars were appropriated for fiscal years '92-*94 in Threat reduction assistance. Excluding CIS countries. 6Includes an estimate of shuttle or informal trade. 7Source: U.S. Department of Commerce. 4. Foreign Investment Statistics According to Goskomstat, estimates of foreign investment in Russia vary widely. Russia accumulated foreign investment of USD 4 billion by the end of 19Q4. representing some 16,036 firms with foreign participation. Goskomstat puts foreign direct investment in 1994 at USD 1 billion. U.S. Department of Commerce RDBD 5 - St. Petersburg Julv I** 4-15 Statics from the Russian government indicate that the following countries are leading investors in Russia: Country Percent Total Rubles (in Millions) Firms U.S 24.1 30,967 872 Hong Kong 6.9 8,810 66 Switzerland 5.8 7,465 195 Canada 4.0 5,090 126 U.K. 3.3 4,208 367 Spain 3.2 4,152 72 Turkey 3.2 4,133 75 Belgium 2.8 3,547 76 PRC 2.5 3,166 311 U.S. Department of Commerce RDBD 5 - St. Petersburg 4-16 July 1996 CHAPTER 5 - U.S. AND RUSSIAN EXPORT CONTROLS A. U.S. EXPORT CONTROLS The United States had a generally strict export control policy toward the Soviet Union. With the dissolution of that state, the United States is now liberalizing its controls toward Russia and the other emerging democracies among the countries of the former Soviet Union. The United States has a multi-agency export control organization devoted to the task. 1 . Dual-Use Export Controls The Department of Commerce administers export controls for items that can be used both for military and civilian dual-use purposes. Recent changes in the Department of Commerce export control regulations have significantly increased the potential for high technology trade with Russia. The Commerce Department's Section 799. 1 of the Export Administration Regulations (EAR) contains the list of controlled commodities and technical data. On September 1, 1991, a new Commerce Control List (CCL) went into effect. The CCL greatly reduced the number of items controlled for reasons of national security, provided more specific descriptions of the items controlled, aligned control parameters with current industry standards, decontrolled items which are readily available "off-the- shelf in everyday commerce, and improved harmonization with the tariff system implemented by the U.S. Customs Service. In addition, U.S. export control policy has changed from a presumption of denial to a presumption of approval for an export to Russia as long as the export is destined for civilian end-uses or purposes, the end-use is not military or for defense purposes, or the end-user is not a military organization. The United States and its partners in the now-defunct COCOM agree that the maintenance of some export controls on Russia remain strategically necessary. The more sophisticated the technology, the more likely it will require an export license. U.S. industry is advised that one-on-one visits, conversations, and training may involve exports of technical data if they include discussions concerning controlled commodities, and could require an export license. The visit, conversations, or training representing the export may be in the United States or Russia. U.S. companies should therefore consult the Bureau of Export Administration (BXA) before engaging in consultations and/or business transactions involving the export of controlled dual-use commodities and technical data. U.S. Department of Commerce Juh RDBD 5 - St. Petersburg 5-1 A. Assistance All goods and technology on the CCL require an export license. If a firm, enterprise, or exporter is unsure of the type of export license required, the Export Administration Regulations (15 CFR §730 - 799) should be consulted, or a call placed to the Exporter Counselling staff at (202) 482-481 1 or fax your request to (202) 482-3617 and request Form BXA-748P which could be used either to obtain an export license or a commodity classification. To determine how a particular commodity or technical data is classified, follow the procedure listed below to obtain a commodity classification. B. How to Obtain a Commodity Classification: 1 . From the Manufacturer: The manufacturer should be able to provide the proper commodity classification (Export Control Commodity Number[s]). 2. Company Engineer: A company engineer who has technical expertise and knows the product well can review Section 799. 1 of the Export Administration Regulations (CFR 1 5) against a product's technical parameters and try to categorize/classify the commodity. 3 . Official Request to Operations Support Branch: Submit an official request to Operations Support Branch on Form BXA-748P. Follow the procedures below. a. Submit the following information: i. Complete Form BXA-748P and send a cover letter including a technical analysis, ii. Product brochures with detailed technical specifications, iii. List specific commodities of concern (5 or less per request), iv. Include model numbers if applicable. b. Include the following information in your cover letter. i. A recommended classification for the commodities. ii. The reasons for the recommendations, including a technical analysis of the commodities in terms of the technical parameters specified in the regulations, and iii. The reasons for providing a classification, if one does not U.S. Department of Commerce My 1996 RDBD 5 - St. Petersburg 5-2 provide a technical analysis, including, as appropriate, any/all ambiguities or deficiencies in the regulations that preclude making a technically accurate analysis or classification. c. Once Operations Support Branch (OSB) has classified the commodity, the individual will receive in reply an official letter containing the classification. BXA provides commodity classifications only in writing. BXA does not consider any verbal advice received from the Exporter Counselling Division, OSB, or any other unit of BXA to be a formal agency determination or binding. 4. Send the completed Form BXA-748P and other information to the following address: U.S. Department of Commerce Operations Support Branch P.O. Box 273 Washington, D.C. 20044 Status: (202) 482-4905 Fax: (202)482-9179 C. To check on the status of a license application or commodity classification call or fax your request to the Exporter Counselling Division at: Phone: (202)482-4811 Fax: (202)482-3617 STELA (automated answering system 24 hour) phone: (202) 482- 2752 2. Defense Export Controls The United States controls the export of all defense items and the Department of State is responsible for these export controls. The State Department's International Traffic in Arms Regulations (ITAR) contains a list of defense articles which the Department of State controls. Although it is the policy of the United States to deny exports of defense articles to proscribed destinations, including Russia, the Department of State anticipates that l S U.S. Department of Commerce July N»*> RDBD 5 - St. Petersburg 5-3 industry will receive requests for defense equipment or services. Prior to engaging in any consultations or transactions involving the export of defense articles, including technical data and technical assistance, companies should consult with the Department of State, Center for Defense Trade, Office of Defense Trade Controls or Office of Defense Trade Policy. They may be reached as follows: PM/DTC, SA-6, Room 200 Office of Defense Trade Controls (DTC) Bureau of Politico-Military Affairs U.S. Department of State Washington, D.C. 20522-0602 Phone: 703-875-6644 Fax: 703-875-6647 PM/DTP, Room 7815 Office of Defense Trade Policy Bureau of Politico-Military Affairs U.S. Department of State Washington, D.C. 20520-7815 Phone: 202-647-4231 Fax: 202-647-4232 B. RUSSIAN EXPORT CONTROL POLICIES AND PRACTICES 1 . Background The June 1992 Charter for American-Russian Partnership and Friendship announced that "the United States and Russia agree that the process of normalization of technology trade is based on Russian determination to adhere strictly to world standards of export controls in the area of the nonproliferation of weapons of mass destruction and related technologies, missiles and missile technology, destabilizing conventional armaments, and dual-use goods and technologies." Since then, Russia and the other nations of the Former Soviet Union have regularly voiced their commitment to deny weapons of mass destruction, chemical and biological weapons, and launch vehicles to countries of concern. In a state of the nation address in February, for example, Russian President Yeltsin proclaimed, "We are coming out unequivocally in favor of strengthening the regime of non-proliferation of weapons of mass destruction and the latest military technologies." U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 5-4 2. Russian Export Controls According to Russian export control officials, the Russian Federation export control system has the following objectives: 1) protection of Russian state economic interests; 2) control of the export of raw materials that are used in developing missiles and weapons of mass destruction; and 3) control of items which are used in developing weapons of mass destruction, thereby preventing their proliferation, and meeting Russian international obligations. President Yeltsin has issued a series of decrees since 1992 that provide the legal basis for developing export controls in Russia. The decrees established an interagency Russian Export Control Commission (ECC) that ensures a unified policy on the export of special weapons and related technologies. The ECC makes decisions on controversial applications for most types of sensitive exports, including nuclear dual-use items and missile, chemical, and biological weapons-related items. Besides creating the Export Control Commission, President Yeltsin also established in 1992 the Interagency Commission on Military-Technical Cooperation to review applications for conventional weapons exports. Both commissions include representatives of the Russian Ministries of Foreign Affairs, Foreign Economic Relations, Economics, and Defense. Government decrees also establish lists of items subject to control. One list corresponds to what was COCOM's Industrial List and includes items such as strategic raw materials and dual-use products. Other lists cover nuclear-, missile-, chemical-, and biological-related materials and are typically based on international lists such as those of the Missile technology Control regime and the Nuclear Suppliers Group. Although the Russia is not a member of the MTCR, it adheres to it and considers its rules to be more strict than those called for by the MTCR. The Russians indicate they followed the recommendations of the Australia Group for its lists of both chemical- and biological-related items, although there are some discrepancies The Russian Government requires exporters seeking to ship controlled commodities to submit applications for an export license to the Ministry of Foreign Economic Relations (MFER). MFER forwards complicated cases to the Export Control Commission. If the Commission approves the export, then the Ministry' issues the license. For Don-industrial, non-dual use commodities, (e.g., military or nuclear items), the Russian Ministry U.S. Department of Commerce July W% RDBD 5 - St. Petersburg- 5-5 overseeing the industry sector that produces the commodity (e.g., the Ministry of Defense or the Ministry of Atomic Energy) has to give written pre-clearance of the export before the MFER can grant the license or International Import Certificate. MFER bases a positive decision on the availability of the item and the importer's agreement not to use the item, directly or indirectly, for purposes banned by the international regimes. The Russian government also prohibits the foreign importer from reexporting the item without written authorization of the Russian exporter. The recipient country is required to document these safeguards. The Russians also consider whether the importing country is a member of multilateral organizations in the area of nonproliferation; whether the importing country was ever denied the transfer of regulated technologies; whether the importing country ever used legal imports for purposes inconsistent with the obligations the Russians follow, etc. The Russians are improving their criminal penalties. The legislature, early in 1993, added a law which provides for three to eight years imprisonment for the illegal export of items from the controlled lists. Additionally, the Ministry of Justice has been directed to prepare proposals to institutionalize legal and administrative liability for unlawful exports. Notwithstanding some evident progress, Russia has more work to do—particularly in the enforcement area—to have an effective export control system. Although Russian customs officials routinely intercept contraband shipments of strategic metals and petroleum, regulated materials, including small arms and radioactive materials, are making their way out without proper licensing. The U.S. government plans to assist Russia in further developing its export control system. Firms on the front lines of defense conversion will be prime candidates for the earliest efforts of industry outreach for export controls. In the meantime, inadequate funding has constrained hiring of border guards and limited the training programs that would better qualify them to identify sensitive materials and administer export controls. Resource problems also limit Russia's ability to educate Russian industries on new export control regulations, although Russia has advertised new export control regulations in the press. Corruption has also complicated efforts to control weapons and technology transfers. Russian export controls continue to suffer from a poorly defined legal system providing a basis for control. Decrees— not Russian law~ largely provide the current basis of Russia's export controls. Non-Government Source of Information The ANSER Center for International Aerospace Cooperation (CIAC), a private non-profit research institute with offices in Arlington, VA, and Moscow keeps abreast of the recent degrees issued in the regions covered. A recent degree #879 of the Russian Federation of Ministers "On Improvement of the Export and Import Control System for Defense-Related U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 5-6 or Products, Activities, and Services in the Russian Federation" is contained in ANSER's CIAC Moscow Report # 155. For this and other reports contact: Stephen Hopkins, Deputy Director ANSER Center for International Cooperation, 1215 Jefferson Davis Highway, Suite 800, Arlington, VA 22202 Tel: (703)416-8430 Fax:(703)416-8440 Internet: [email protected] Debra Facktor Moscow Office Chief, Anser CIAC 54 2nd Tverskaya-Yamskaya Ulitsa, Suite 171 125047 Moscow, Russia Phone: (01 1-7-095) 251-5295 Fax: (011-7-095)250-3783 E-mail: [email protected] C. RUSSIAN MULTILATERAL CONTROL INITIATIVES In June 1992, the COCOM member nations established a Cooperation Forum (CCF) and invited Russia and the other reforming nations in the former Soviet Union to participate. The CCF was intended to provide a forum to discuss international standards for export controls as well as a mechanism to coordinate technical assistance efforts. Russian delegates to the inaugural meeting of the CCF in November 1992 in Paris enthusiastically endorsed COCOM's plans to liberalize trade with former Soviet bloc countries as they establish the export controls necessary to prevent unauthorized transfers of sensitive technologies. Russia is a depositary of the Nuclear Non-Proliferation Treaty, and a member of the Nuclear Suppliers Group. It has also signed the Chemical Weapons Convention that bans the transfer of chemicals with military applications. Russian officials claim it controls over missile-related transfers are based on the Missile Technology Control Regime, and the U.S. Government has classified Russia as an MTCR "adherent." U.S. Department of Commerce July l00o RDBD 5 - St. Petersburg . 5-7 CHAPTER 6 - RECENT BILATERAL AGREEMENTS REFORM: POLITICAL AND ECONOMIC ASPECTS As Russia embarks on its historic course of economic reform, one of the questions concerning U.S. businesses contemplating investment in the emerging Russian market is whether the reform process will continue and result in a commercial environment conducive to "normal" business activity, or whether it will collapse, leaving the state-controlled command system stagnating. Initial efforts toward economic reform, however, have entailed significant hardships, and provoked increasing opposition. Prices have soared, industrial production has fallen, and many enterprises are on the verge of bankruptcy. Nevertheless, on August 19, 1992, President Yeltsin announced an ambitious privatization plan. The government's economic plan provides for the complete privatization of small industrial enterprises and most of the housing stock by 1994. According to former Premier Gaydar, between 50 and 60 percent of state-owned industry in Russia is slated for privatization by the end of 1995. The long-awaited announcement was clearly designed to give new momentum to Russia's flagging economic reform program and dispel a growing sense of pessimism among ordinary Russians. During the June 1992 Summit meeting, Presidents Bush and Yeltsin authorized a number of agreements aimed at alleviating and eliminating obstacles to U.S. trade and investment in Russia. These agreements help to create a positive climate for business opportunities. These agreements included the Joint Russian-American Declaration on Defense Conversion Other agreements established The Charter for American-Russian Partnership and Friendship, a bilateral investment treaty, a treaty for avoidance of double taxation of income, a trade agreement, and an OPIC investment incentive agreement. These agreements and initiatives, which serve to foster a commercial environment in Russia conducive to U.S. trade and investment, are described below. 1 . Joint Russian-American Declaration on Defense Conversion In this declaration, the United States of America and the Russian Federation state their intention to make cooperation in advancing defense conversion a high priority Both countries recognize that defense conversion is key to building a more economically viable world and assuring world peace. Although both countries are aware of the difficulties involved, they also realize that the successful conversion of resources no longer needed for defense was in the long-term economic and national security interests of both nations. U.S. Department of Commerce Julv !*>*> RDBD 5 - St. Petersburg 6-1 The United States of America and the Russian Federation also agreed to establish a U.S. -Russian Committee on Defense Conversion to facilitate conversion through expanded trade and investment. This committee is to: — facilitate the exchange of information particularly on conversion enterprises; ~ promote trade and investment; — encourage contacts between interested parties; — improve commercial conditions in both countries through the identification and removal of obstacles to trade and investment. With the aim of promoting successful cooperation in conversion, each country committed to a number of practical steps in the near future. The Russian Federation will: ~ establish on its territory a favorable political, economic, legal, and regulatory climate for American trade and investment; ~ institute the necessary reforms to make the ruble convertible; — institute the necessary reforms to support the privatization and de-monopolization of industry; — enact laws guaranteeing contract and property rights; and, — disseminate basic business and financial information on enterprises undergoing conversion. The United States Government will: — place defense conversion resident advisers in Russia; — provide expertise to local leaders and enterprise directors; -- establish in Russia business centers with translation, education, and training facilities for U.S. businesses operating in Russia; ~ create a business information service ("BISNIS") in Washington to match U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 6-2 businesses in Russia with potential investors in the United States, and, — assure that the Trade and Development Program, the Overseas Private Investment Corporation, and the Eximbank provide incentives to American private investment in commercially viable defense conversion projects. The United States of America and the Russian Federation agree to: — remove barriers to high technology trade, — assist in the establishment of COCOM-comparable export control regimes in Russia, ~ establish procedures to ensure the civil end-use of sensitive goods and technologies, and ~ expand bilateral defense and military contacts. 2. Charter for American-Russian Partnership and Friendship This Charter, signed on June 17, 1992, is meant to provide a solid and enduring basis for American-Russian partnership, and describes the new agenda for U.S. -Russian relations in the areas of democracy and partnership, international peace and security, and economic freedom. In this last area, the parties agree on the following: — The surest path to Russia's long-term prosperity and integration into the global economy is the continuation of the present path of free market reform. — The U.S is determined to continue its support for reform. — Russia will speed up privatization and de-monopolization, the introduction of structural and sectoral reform, and the creation of policies directed at furthering competition and effective property and contract rights. Of special importance will be the introduction of land reform and reforms in the energy sector — The Russian Federation will improve its laws in the fields of taxation, property, and contract law, and those relating to intellectual property rights — The parties recognize the critical role of the private sector and will encourage mutually beneficial Russian- American cooperation in trade and investment — The parties intend to lower constraints to trade and investment and to remo\ e U.S. Department of Commerce Jul\ '.*>*> RDBD 5 - St. Petersburg 6-3 Cold War-era restrictions on business. The parties will also work to strengthen national export control systems and prevent proliferation. 3 . Bilateral Investment Treaty The United States and the Russian Federation signed a bilateral investment treaty (BIT) on June 17, 1992. This treaty creates the legal framework designed to stimulate private investment. The Treaty demonstrates the determination of the Russian government to establish a market-oriented, open investment climate. Together with other agreements, the BIT should encourage U.S. business investment in Russia and facilitate our private sector's involvement in Russia's economic reform. On August 1 1, 1993, the U.S. Senate ratified this treaty. Specifically, the BIT: ~ guarantees non-discriminatory treatment for U.S. investments in Russia and their operations there (i.e. assure "competitive equality"); ~ guarantees the right to repatriate into hard currency, profits earned in rubles; — guarantees prompt, adequate and effective compensation in the event of an expropriation; and ~ provides the right to third party international arbitration in the event of a dispute between a U.S. investor and the Russian government. The BIT still awaits ratification by the Russian Parliament. 4. Treaty for the Avoidance of Double Taxation of Income This treaty, also signed on June 17, 1992, will help to promote a strong expansion of economic, technical and cultural ties between the two countries, and replaces the Convention on Matters of Taxation which the United States and the USSR signed in 1973. The new treaty, which went into effect on January 1, 1994, provides certainty to potential investors concerning their tax treatment on income earned from sources in the other country, and will in many cases eliminate or reduce the tax liability at source so as to encourage greater investment flows. Among other things, the treaty will provide: — relief from double taxation, i.e., only income earned in Russia is taxable in Russia; — assurance of nondiscriminatory tax treatment; ~ for cooperation between the U.S. and Russian tax officials to resolve potential problems of double taxation; and U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 6-4 for exchange of tax information between tax authorities to help improve compliance with respective income tax laws and the provisions of the treaty 5. U.S. Russian Trade Agreement This agreement provides for reciprocal Most Favored Nation (MFN) tariff treatment to the products of each country. The Trade Agreement was originally concluded with the Soviet Union in June 1990 and approved by the U.S. Congress in November 1991 . The U.S. and Russia agreed on technical adjustments to that agreement to reflect the establishment of an independent Russia. U.S. Congressional re-approval is not required. In addition to providing MFN for both parties, the Agreement: ~ provides improved market access and non-discriminatory treatment for U.S. goods and services in Russia and also calls for step-by-step provision of national treatment for U.S. products and services; -- facilitates business by allowing free operation of commercial representations in each country and by permitting companies to engage and serve as distributors/agents and consultants and to conduct market studies; and — offers strong intellectual property rights protection. 6. OPIC Investment Incentive Agreement On June 17, 1992, the Russian Federation informed the U.S. Government that it has fulfilled all the legal requirements for entry into force of the bilateral OPIC Investment Incentive Agreement signed in Washington on April 3, 1992. As the United States had already completed all its legal requirements, the Agreement entered into force on June 17. This Agreement will allow the Overseas Private Investment Corporation (OPIC) to make its investment insurance, finance and promotion programs available to U.S. businesses considering investing in Russia. According to OPIC officials U.S. businesses have submitted approximately 300 investment proposals for a variety of business ventures; approximately one to two dozen specifically relate to defense conversion projects. The Overseas Private Investment Corporation (OPIC) is a U.S. Government agency that promotes economic growth in developing countries by encouraging U.S. private investment in those nations. OPIC assists American investors through three principal agreements: (1) financing investment projects through direct loans and loan guaranties, (2) insuring investment projects against a broad range of political risks, and (3) providing U.S. Department of Commerce ,'ul\ l1*** RDBD 5 - St. Petersburg 6-5 a variety of investor services, including advisory services, investment missions, computer-assisted project/investor matching, and country information kits. OPIC encourages U.S. private investment in sound business projects, thereby improving U.S. global competitiveness, creating American jobs and increasing U.S. exports. With respect to OPIC activities in the Russian Federation and the Newly Independent States (NIS), OPIC has two major initiatives available to the American business community. First, OPIC offers the NIS Private Sector Initiative which assists U.S. companies in locating and exploring private sector investment opportunities throughout the NIS. Second, to facilitate investment in the pharmaceutical and medical equipment and supplies manufacturing industries, OPIC has also implemented the NIS Health Sector Initiative. Through both of these programs, OPIC will organize and execute investment missions to selected NIS countries and OPIC will also coordinate conferences and seminars in the U.S. 7. Eximbank Activity In response to President Bush's initiative, the Congress repealed legislative restraints on Eximbank activity in Russia on April 1, 1992, by repealing the Stevenson and Byrd amendments that had a $300 million Eximbank financing ceiling and constraints on financing of oil and gas transactions. Through August 1 994, Eximbank has approved roughly $1.5 billion worth of financing for exports to Russia. In July 1993, Eximbank signed an Oil and Gas framework agreement under which Eximbank may provide financing assistance of up to $2 billion for purchases of equipment and services to revitalize Russia's energy sector. Eximbank has supported over a billion dollars' worth of U.S. exports under this agreement to date. Eximbank's Russian partners are the Russian Central Bank and Ministry of Fuel and Energy. Individual transactions under the framework agreement will be considered on a case-by- case basis. Repayment terms will be for five years (or possibly longer if appropriate), and the minimum amount of financing for each transaction will be $25 million. A recent loan by provided funds for the development of the IL-96 civilian airliner. Eximbank is prepared to enter into similar arrangements to assist other export sectors such as minerals and timber. In addition, Eximbank will consider loan and guarantee applications for limited recourse project financing in any sector of the Russian economy where the project will generate hard currency revenues and Eximbank's exposure will be significant—generally at least $50 million. Eximbank is also prepared to support, under its short- and medium-term insurance, loan, and guarantee programs, transactions involving U.S. exports to the Russian Federation where the only available security would be a sovereign obligation or U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 6-6 guarantee. In such cases, the obligor or guarantor will be the Bank for Foreign Trade of the Russian Federation (VTB), and the other with the Bank for Foreign Economic Affairs of the Russian Federation (VEB), acting on behalf of the Russian Federation Credit guarantee facilities, providing an Eximbank guarantee in medium-term lines of credit from commercial banks, are available to Russian private commercial banks with acceptable levels of capital that can provide satisfactory audited financial statements U.S. Department of Commerce July I1** RDBD 5 - St. Petersburg 6-7 THE WHITE HOUSE Office of the Vice President For Immediate Release January 30, 1996 U.S.-Russian Joint Commission On Economic and Technical Cooperation THE GORE-CHERNOMYRDIN COMMISSION Defense Conversion Committee Vice President Al Gore applauds continuing progress in the U.S.-Russian Defense Conversion Committee's joint efforts to facilitate and support the conversion of Russian defense industries formerly involved in weapons of mass destruction to peaceful commercial endeavors. The "Fast Four" Nunn-Lugar defense conversion projects had employed 330 former Russian defense industry employees and converted 27,600 square meters of factory space in Russia from military to civilian production as of January 1996. The Defense Enterprise Fund ~ the private, non-profit venture capital fund established by Congress and funded by the Department of Defense to assist in defense conversion in Russia, Ukraine, Kazakstan and Belarus — signed a finance protocol for a new potential joint venture in Russia. The DEF, Ernst & Young of Chicago and Mashinostroyenia of Moscow will form a joint venture to provide world class computer systems development and contract programming services to the world market Mashinostroyenia formerly designed and built ICBMs, nuclear-armed cruise missiles and reconnaissance satellites. The Defense Enterprise Fund expects to invest between $l-$3 million in this joint venture, in addition to the $9.6 million already invested by the DEF to help convert defense facilities in Russia that had produced weapons of mass destruction to civilian production. The Department of Commerce welcomed the first group of 20 Russian participants in its SABIT (Special American Business Internship Training ) Defense Conversion Program. They completed their training from October to December 1995. OPIC signed a Memorandum of Understanding with the Russian side of the Committee to work together to encourage and support U.S. investment in defense conversion projects. ACDA's follow-up to its June 1995 Entrepreneurial Workshop resulted in business contacts and a potential relationship between Halliburton Energy Services of Texas and the Russian nuclear weapons design laboratory Arzamas- 16 to produce oil-well perforators. The U.S. Trade and Development Agency (TDA) provided $515,000 in funding for two additional feasibility studies of potential defense conversion joint ventures in Russia. For 1996, the Defense Conversion Committee is planning three conferences and workshops in Russia and the U.S. to promote defense conversion business partnerships and assist in the economic revitalization of Russian cities with a heavy concentration of defense industry. ii ii jj TttTTT CHAPTER 7 - ADDITIONAL SOURCES OF INFORMATION GOVERNMENT - U.S. Agency for International Development Center for Trade and Investment 515 22nd St., N.W., Room 100 Washington, DC 20523-0229 Contact: Laura Hatton, David Rybak Phone: 1-800-872-4348 Local: (202) 663-2660 Fax: (202) 663-2670 Department of Commerce A BISNIS (Business Information Service for the Newly Independent States), Room 74 1 3 14th and Pennsylvania Ave., N.W. U.S. Department of Commerce Washington, DC 20230 Contact: Anne Grey, Acting Director Phone: (202) 482-4655 Fax: (202) 482-2293/Flashfax: (202) 482-3 145 E-Mail: [email protected] To visit BISNIS HomePage - http://www.iep.doc.gov/bisnis/bisnis.html Publications : BISNIS Bulletin; BISNIS Search for Partners; BISNIS Bank Flashfax, over 100 handouts on doing business in the newly independent states of the former Soviet Union. B. Bureau of Export Administration (BXA) 1. Defense Conversion Subcommittee Working Group, Room 3S"o 14th and Pennsylvania Ave., N.W. Washington, DC 20230 Contact: William J. Denk Phone: (202) 482-3695 Fax: (202) 482-5650 U.S. Department of Commerce Jul) W^ RDBD 5 - St. Petersburg 7-1 2. "The Russian Defense Business Directory" - Fourth Installment, special and future editions Contact: Daniel C. Hurley, Jr., Room 3892 Phone: (202) 482-1455 Fax (202) 482-2387 E-Mail: [email protected], 14th and Constitution Ave., N.W. Washington, DC 20230 3. St. Petersburg and Leningrad Region Business Directory - Fifth Installment Contact: Franklin J. Carvalho, Room 1089, Phone: (202) 482-0672, 482-5953 Fax: (202)482-3195, E-mail: [email protected] 14th and Constitution Aves., N.W. Washington, DC 20230 C. International Trade Administration Office of Eastern Europe, Russia, & the Newly Independent States, Room 3413 14th and Pennsylvania Ave., N.W. U.S. Department of Commerce Washington, DC 20230 Contact: Susanne Lotarski, Director Phone: (202)482-1104 Publication: Obstacles to Trade and Investment in the New Republics of the Former Soviet Union: A Review of Impediments as Seen by the U.S. Business Community, March 1992, Document number PB 92-161 173. To order call or write the National Technical Information Service (NTIS): 5285 Port Royal Road, Springfield, VA 22161; phone: (703) 487-4650, fax: (703) 321-8547. D. International Trade Administration (ITA) Office of Export Trading Company Affairs Consortia of American Businesses in the Newly Independent States (CABNIS), Room 1800, HCHB U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-2 14th and Constitution Ave., N.W. Washington, DC 20230 Contact: W. Dawn Busby, Director Office of Export Trading Company Affairs Phone: (202) 482-5004 Fax: (202) 482-4654 The International Trade Administration (IT A) funds grants through CABNIS, a Commerce program designed to help U.S. firms do business in the new and complex markets of the NIS. Since its inception in 1992, the CABNIS program has approved nine three-year grants. Grant funding totaled $4.5 million in FY 1993, and funding for FY 1994 is $1.5 million CABNIS expects to approve a minimum of three more grants this year. Individual CABNIS awards will total up to $500,000, to be matched by the award recipient with non-Federal (cash and/or in-kind) resources. The CABNIS program has already generated more than $9 million in U.S. export transactions. Through CABNIS, nonprofit awardees form U.S. business consortia of for-profit firms, primarily small and medium sized firms, and establish trade offices in the NIS. Staffed by industry specialists, these commercial offices promote targeted industries and represent the business interests of U.S. companies. The consortia also undertake activities to enhance NIS private sector development, thus helping to create a business environment conducive to U.S. exports. CABNIS consortia provide hundreds of U.S. firms with a means to promote their products and services in a cost-effective manner. CABNIS helps U.S. firms position themselves to aggregate their commercial expertise and activities in order to enjoy some of the same advantages as larger export businesses. U.S. export transactions and business relationships occur quickly under CABNIS relative to individual companies trying to export on their own. Please note that all U.S. nonprofit organizations interested in promoting U.S. exports and developing NIS economies are likely candidates for the CABNIS program. Moreover, nothing precludes a group of U.S. firms or individuals from establishing a non profit umbrella organization and applying for funding assistance. Requests for Application Kits ("410- 3172) should be addressed to OETCA, Room 1800 HCHB, U S Department of Commerce, 14th Street and Constitution Ave . N \Y . U.S. Department of Commerce Julv W^> RDBD 5 - St. Petersburg 7-3 Washington, DC 20230. E. Special American Business Internship Training Program (SABIT) 14th and Pennsylvania Ave., N.W., Room 3413 Washington, DC 20230 Contact: Liesel Duhon, Director Phone: (202) 482-0073 Fax: (202) 482-2443 The International Trade Administration (IT A) coordinates SABIT, a program in which qualified U.S. firms host senior-level business executives and scientists from the Newly Independent States for three-to-six month internships. To date SABIT has placed approximately 600 interns in qualified firms throughout the United States. Call or fax the SABIT office to request an application brochure. The new "Defense Conversion SABIT" program will bring about 100 defense industry executives from Russia, Ukraine, Kazakhstan and Belarus for 8 weeks of business training in the U.S. Contact: Monika Wasiewicz, Room 3878 Phone: (202) 482-3984 Fax: (202) 482-5650 E-mail: [email protected] F. United States and Foreign Commercial Service Russia/NIS Program Office 14th and Pennsylvania Ave., N.W., Room 1235 Washington, DC 20230 Phone: (202)482-2902 Fax: (202) 482-2456 Moscow Location: Novinsky Bulvar, 1 5 International Tel: (011-7-502) 224-1105 International Fax: (01 1-7-502) 224-1 106 Local Tel: (01 1-7-095) 255-4660 or (011-7-095)255-4848 Telex: 413 205 USCO SU Time: Plus 8 hours (E.S.T) U.S. Mailing Address: (Name of Employee) U. S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-4 AMEMBASSY MOSCOW PSC 77 - FCS APOAE 09721 Contacts: John Peters, Senior Commercial Officer Richard Steffens, Commercial Officer OPIC representative. St. Petersburg American Consulate General, Commercial Section 57 Bolshaya Morskaya St. Petersburg, 190000 International Tel: (011-7-812) 850-1902 International Fax: (011-7-812) 850-1903 Local Tel: (812) 110-6727 Local Fax: (812) 110-6656 Time: Plus 8 hours (E. ST.) U.S. Mailing Address: (Name of Employee) American Consulate General, St. Petersburg PSC 78, Box L APO AE 09723 Contacts: David Schneider, Principal Commercial Officer Robert May, Commercial Officer Vladivostok American Consulate General Vladivostok Mordovtseva, 12 Local Tel: (011-7-509)851-1011 Local Fax: (01 1-7-4232) 268-445 Time: Plus 15 hours (EST.) Foreign Commercial Officer: Tim Smith U.S. Mailing Address: (Name of Employee) AmConsul Vladivostok State Department Washington, DC 20521-5880 Yekaterinburg U.S. Department of Commerce July W1^ RDBD 5 - St. Petersburg 7-5 Dr. Howard J.T. Steers, Consul General Jonathan Turak, Political/Economic /Dep. Principal Officer Lev Koutchevski. Commercial Assistant Alexander Deianov, Commercial Assistant Ulitsa Gogolya 15A P.O. Box 400 620 151 Yekaterinburg Tel: +7-3432-601-143 +7-3432-564-619 +7-3432-564-691 Fax: +7-3432-601-801 The United States Trade & Investment Center (USTIC) Ms. Beth Smits, Commercial Section U.S. Embassy 27 Blvd. Du Regentlaan 1000 Brussels Tel: 32-2/508-2534 fax: 32-2/512-6653 The U.S. Foreign Commercial Service and the U.S. Information Service working together with the American business community, are creating the USYIC to inform American companies in Europe about the emerging markets of Central and Eastern Europe, Russia and the Newly Independent States so that they can take advantage of the opportunities awaiting them in these important regions. Access to USTIC will be on the basis of memberships or subscriptions. American Business Centers™ (ABCs) American Business Centers provide the businessperson with a professional working environment and the services essential for doing business in the Newly Independent States of the former Soviet Union. ABC locations include: Russia Chelyabinsk Khabarovsk *Kiev. Nizhny Novgorod Nizhnevartovsk U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-6 Novosibirsk *St. Petersburg ""Vladivostok Volgograd Yekaterinburg Yuzhno- S akhalinsk *Almaty, Kazakhstan * Tashkent, Uzbekistan * These American Business Centers™ are under the management of the U.S. Department of Commerce's U.S. and Foreign Commercial Service. The U.S. and Foreign Commercial Service provides individualized counseling, agent/distributor location services, market research, trade promotion events, and advocacy services For an information packet on the American Business Centers™, contact the Business Information Service for the Newly Independent States at (202) 482-4655, ext. 21. American Business Center™ - Chelyabinsk, Russia In Russia: Christopher Elbring Phone: (011-7-3512)623-782 Fax: (011-7-3512) 623-768 E-mail : [email protected] In U. S. : Shree L. Morris Phone: (803)785-2171 E-mail: [email protected] American Business Center™ - Nizhnevartovsk, Russia In Russia: Allan Vodicka Phone/Fax: (0 1 1 -7-3466) 224-407 E-mail: allan.abcent.vartovsk.tyumen.su In U.S.: Jen Kirk Phone: (847)870-8611 Fax: (847)870-8331 E-mail: [email protected] American Business Center™ - Nizhny Novgorod, Russia U.S. Department of Commerce Julv W^> RDBD 5 - St. Petersburg 7-7 In Russia: Nikolai Popov Novosibirsk, Russia Phone/Fax: (011-7-8312)372-213 E-mail: [email protected] To reach Russia via Satellite Phone: (212)803-2026 In U. S. : Aggie Bednarz Phone: (602)978-7400 Fax: (602) 978-8238 E-mail: [email protected] American Business Center™ - Novosibirsk, Russia Russia Contact: Richard Love Hotel Sibir, 21 Leninskii Novosibirsk, Russia Phone: (01 1-7-3832) 22-13-76 E-mail: [email protected] U.S. Contact: ABC Program Office Science Applications Int'l Corp. 1710 Goodridge Drive, M/S Tl-13-1 McLean, VA 22 102 Phone: (703)749-8978 Fax: (703) 448-5746 E-mail: [email protected] American Business Center™ - St. Petersburg, Russia Russia Contact: Janna Agasieva 57 Bolshaya Morskaya St. Petersburg, Russia. Int'l. Phone: 011-7-812-850-1900 Int'l. Fax: 011-7-812-850-1901 Local Phone: 812-110-6042 Local Fax: 812-311-0794 American Business Center™ - Volgograd, Russia U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-8 U.S. Contact: Margaretta Brede American Graduate School of Int'l Management 15249 N. 59th Avenue Glendale, AZ 85306-6000 Phone: (602)978-7400 Fax: (602) 978-8238 Natasha Kent C/o Volograd Union of Consumers Association, Lenin Street 9, Suite 30, Volgograd, Russia 400066 Phone: (011-7-8442) 335-946 Fax: (011-7-8442)362-732 E-mail: ABCV @ ABC. TSARITSYN. SU American Business Center™ - Yekaterinburg, Russia Russia Contact: George Lambrou 80 Lunacharsky Street 620 219 Yekaterinburg, Russia Phone: (011-7-3432) 555-689 Fax: (01 1-7-3432) 556-1 16 E-mail: GEORGE. LAMBROU @ sovcust.sprint.com U.S. Contact: Bendy Viragh Pragma Corporation 116E. Broad Street Falls Church, VA 22046 Phone: (703)237-9303 Fax: (703) 237-9326 E-mail: pragma [email protected] American Business Center- Yuzhno-Sakhalinsk, Russia Russia Contact: Dinty Miller 32 Kommunisticheskii Prospect Yuzhno-Sakhalinsk, Russia Tel/Fax: (01 1-7-42422) 23-142 E-mail: [email protected] Congressional Research Service U.S. Department of Commerce Julv WOc RDBD 5 - St. Petersburg 7-9 U.S. Library of Congress 203 Madison Building Washington, DC 20540 Contact: Dr. John P. Hardt Phone: (202) 707-8888 Publication: A New Conversion Strategy: The Yeltsin-Gaidar Economic Crisis Department of Defense The Honorable William J. Perry Secretary of Defense Room 3E944 The Pentagon Washington, DC 20301-1000 Contacts: John Ruberto, Deputy Assistant to the Secretary of Defense Atomic Energy , Defense Conversion, Counter Poliferation Office, OATSD/(AE) Phone: (703)602-5671 Fax: (703) 602-5744 Susan Koch, Deputy Assistant Secretary for Threat Policy OSD/ISP/TRP, Room 5A670 Phone: (703)697-0030 Fax: (703)695-4461 Laura Holgate, Director of Cooperative Threat Reduction, OSD/ISP/CTR, Jeff Moore, Special Assistant for Defense Conversion, Room 2D459 Phone: (703) 614-8620 Fax: (703) 693-1002 Department of Energy Deputy Secretary of Energy Department of Energy, Room 7C-034 1000 Independence Avenue, S.W. Washington, DC 20585 Contact: DAS David Jhirad Phone: (202) 586-5493 Fax: (202) 586-3047 Department of Labor U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7- 1 0 The Honorable Joquin Otero Deputy Under Secretary of Labor U.S. Department of Labor, Suite S-2235 200 Constitution Avenue, N.W. Washington, DC 20210 Contact: Ambassador John Ferch Phone: (202)219-7631 Fax: (202) 219-5613 Suite: S-5006 Department of State The Honorable Strobe Talbott Ambassador at Large for NIS Affairs Thomas W. Simons, Jr. Coordinator for NIS Technical Assistance U.S. Department of State, Room 1004 2201 C Street, N.W. Washington, DC 20520 Contact: Mike Martin, Bill Taylor Phone: (202) 647-2414, (202) 647-2626 Environmental Protection Agency Robert M. Sussman, Deputy Administrator 401 M Street, S.W. RoomW1215 Washington, DC 20460 Contact: Dale Medearis Phone: (202)260-4571 Export-Import Bank Room 1209 811 Vermont Avenue, N.W. Washington, DC 20571 Foreign Broadcast Information Service (FBIS) and Joint Publication Research Service (JPRS) publications contain political, military, economic, environmental, and sociological news, commentary and other information, as well as scientific and technical data reports. All information has been obtained from foreign radio and television broadcasts, new agency transmissions, newspapers, books and periodicals Items U.S. Department of Commerce Julv l^-> RDBD 5 - St. Petersburg 7- 1 1 generally are processed from the first or best available sources. The FBIS Daily Report contains current news and information and is published Monday through Friday in eight volumes: China, East Europe, Soviet Union, East Asia, Near East & South Asia, Sub-Saharan Africa, Latin America, and West Europe. JPRS publications, which include approximately 50 regional, worldwide, and topical reports, generally contain less time-sensitive information and are published periodically. The public may subscribe to either hardcover or microfiche versions of the FBIS Daily Reports or JPRS reports through the National Technical Information Service (NTIS), 5285 Port Royal Rd, Springfield, VA 22161; Phone: (703) 487-4630, Fax: (703) 321-8547. Industrial College of the Armed Forces National Defense University, Fort McNair Washington, DC 20319-6000 Contact: Dr. Clair K. Blong and James R. Lecky, Faculty Members Phone: (202) 475-9169 and (202) 475-1848 Fax: (202) 475-9175 In the spirit of the June 1992 Summit declaration, the National Defense University began a long-term effort to exchange information with the Russians on national and enterprise/firm conversion experiences and study Russian defense industrial conversion at the regional (oblast and city) and enterprise levels. The research focuses on the micro level, that is, the managers and decision-makers in the conversion process in four regions (Nizhniy Novgorod, Kaluga, Voronezh and Moscow Oblast science cities). Interviews help provide an understanding and appreciation how the managers perceive this process of economic adaptation and what they are doing to address its difficult challenges. The research addresses such issues as: how do the Russians define conversion, how are they managing the conversion process, what strategies are they employing at the enterprise level, how are local governments involved in the process, how is the labor force adapting or transitioning in this situation, and what is the status of the local economy? Overseas Private Investment Corporation (OPIC) 1 100 New York Avenue, N.W. Washington, DC 20527 Contact: Loan Officer, Newly Independent States Phone: (202)336-8618 Fax: (202)408-5145 OPIC backed investment funds (202) 336-8507 U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7- 1 2 The Overseas Private Investment Corporation is an independent agency of the U.S. government that promotes economic growth in developing countries by encouraging U.S. private investment. The agency assists American investors as follows: financing investments through direct loans and loan guarantees; insuring investments against a broad range of political risks, and providing a variety of investor services. These services are all available for Russia. Small Business Administration 409 Third Street, S.W., Suite 7000 Washington, DC 20416 Contact: Cassandra Pulley, Deputy Administrator Phone: (202)205-6431 Fax: (202) 205-6802 contact: Jean Smith, Export Development Specialist Phone: (202) 205-6720 Fax: (202) 205-7272 U.S. Arms Control and Disarmament Agency Defense Programs and Analysis Division Nonproliferation Policy Bureau, Room 4953 320 21st Street, NW Washington, DC 20451 Contact: Dr. Peter Almquist Phone: (202) 647-8250 Fax: (202) 736-4977 U.S. Trade and Development Agency Room 309, SA-16 1621 N. Kent Street Arlington, VA 22209 Contact: Dan Stein, Projects Director Phone: (703) 875-4357 Fax: (703) 875-4009 E-mail: [email protected] GOVERNMENT - RUSSIA Interdepartmental Analytical Center (1AC) 16, Petrovka St., P.O. Box 163 U.S. Department of Commerce Julv l°vJo RDBD 5 - St. Petersburg 7- 1 3 Moscow, 103756, Russian Federation Contacts: Dr. Aleksey K. Ponomarev, Director Dr. Sergey K. Kolpakov, Deputy Director Phone: (011-7-095)200-44-66 Fax: (0 1 1 -7-095) 200-44-65 E-Mail: [email protected] The Interdepartmental Analytical Center (IAC) provides analytical and information support to Russian governmental departments and commercial structures in the fields of conversion innovation and investment projects, technology transfer; science and technology policy, and international economic relations. IAC also provides management consulting services in the aforementioned areas. The first English edition of the book Conversion in Russia contains much useful information on Federal Conversion policy and posture, state control over the conversion process, and a Federal conversion program with its regional aspects. The particular accent is made on scientific, technical and export potential of the defense complex, its production competitiveness, technology transfer and international cooperation in the conversion sphere. The appendices list the defense enterprises whose conversion programs have already met Federal support, contain the set of data on legislative regulation of foreign economic activity in the Russian Federation and the creation of companies with foreign investments. This 120-page book is available at $40.00 cod. To order this book, contact Tatiana V. Kruglikova at the above numbers. Intergovernmental U.S.-Russia Business Development Committee (See following pages for organizational charts of U.S. and Russian members of Working Groups and contact points. See Chapter Seven for organizational charts of Russian groups and contact points.) Embassy of the Russian Federation 2650 Wisconsin Ave., NW Washington, DC 20007 Contact: Vadim Udalov, First Secretary Phone: (202)298-5700 Fax: (202)298-5735 Russian Trade Representation in the USA 2001 Connecticut Ave., N.W. Washington, DC 20008 U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7- 1 4 Contacts: Yuri V. Akhremenko, Trade Representative of the Russian Federation in the United States and Minister Commercial. Phone: (202)232-0975 Telex: 451-324 Fax: (202)232-2917 Eugene A. Baranov, Deputy Trade Representative of the Russian Federation in the United States and Commercial Counselor Boris V. Vladimirov, Senior Specialist: aerospace, telecommunications, nuclear industry, chemical and environment Pavel A. Yelkin, Senior Specialist: conversion, technology transfer cooperation, electronics, information industry, foreign investment through Russian privatization program Phone: (202)232-5988, (202)232-7170 Fax: (202) 232-2917 NON-GOVERNMENT ANSER Center for International Aerospace Cooperation (CIAC) 1215 Jefferson Davis Highway, Suite 800, Arlington, VA 22202 Contact: Stephen Hopkins, Deputy Director Phone: (703) 416-8430 Fax: (703)416-8440 Internet: ANSERCIAC@ ANSER.ORG Moscow office: Debra Facktor, Moscow Office Chief 54 2nd Tverskaya-Yamskaya Ulitsa, Suite 171 125047 Moscow, Russia Phone: (01 1-7-095) 251-5295 Fax: (011-7-095)250-3783 E-mail: 76110.342@ compuserve.com ANSER CIAC was formed to advance the development and operation of aerospace systems by facilitating the flow of information between nations and the conduct of scientific and engineering research involving international partnerships U.S. Department of Commerce Julv W% RDBD 5 - St. Petersburg 7-15 Publications: Decision Maker 's Guide to International Aerospace, Who 's Who in Russian Aerospace, Moscow Office Report (a weekly publication which provides information on new Degrees of the Russian Federation Council of Ministers). ANSER also provides clients visiting Moscow with use of Macintosh and DOS compatible computers, color scanners, laser printers, phone, fax and e-mail communications to Western countries at all hours of the day. ARCTIS PromyshlennyaUl., 14A St. Petersburg 198095 Contact: Konstantine Karczmarczyk, General Manager Phone: (01 1-7-812) 186-2830, 252-9477, 252-9587 Fax: (011-7-812) 186-2807 AWT Consulting and NEWA-ARGE Concordiaplatz 2, A-1013 Vienna, Austria Contact: Walter Boltz Phone: 153406314 Fax: 15340616 Publication: Approaching the St. Petersburg Market, Business Report September 1992 Business Executives for National Security 1615 L Street, NW, Suite 330 Washington, DC 20036-1 152 Contact: Danielle Marion Phone: (202) 296-2125 Fax: (202) 296-2490 BENS is a national, non-partisan association of business leaders working to improve national security by promoting better management of defense dollars and advocating measures to make the economy stronger and more competitive. Carroll Publishing Company 1058 Thomas Jefferson Street, N.W. Washington, DC 20007-3832 U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7- 1 6 Phone: (202)333-8620 Fax: (202) 337-7020 Publication: Russian Government Today. Center for Economic Priorities 30 Irving Place, 9th floor New York, NY 10003 Contact: Domenick Bertelli, Director of CEP' s Conversion Information Center John Tepper Marlin, Chairman of the CIC Board of Advisors Phone:(212)420-1133 Fax: (212)420-0988 CEP monitors conversion activities in the United States, Russia and around the world, publishing Research Reports, occasional papers, and policy recommendations. Center for International Security and Arms Control Stanford University 320 Galvez Street Stanford, CA 94305-6165 Contact: Katherine Smith, Director, or David Bernstein Phone: (415)723-9742 Publication: Russia Defense Conversion Update, a monthly research review. Commersant (The Russian Business Weekly) 4 Vrubelya Street Moscow, 125080 Russia Contact: Vladimir Yakovlev, Chairman of Commersant Publishing House Phone: (011-7-095)943-9719 Fax: (011-7-095)943-9719 Commersant bases its stories on materials provided by Commersant-Daily and Commersant newspapers. Commersant was first published in 1908 Suspended in 1917 for reasons beyond its control, it resumed publication in January 1990 Commersant is published as a joint project with Refco Group Ltd (ISA) Conversion for the Environment International Foundation 4-13 Zviozdny Blvd., U.S. Department of Commerce .Hilv W^ RDBD 5 - St. Petersburg 7-17 129515 Moscow, Russia Phone: (01 1-7-095) 286-3587 Fax: (011-7-095)286-3587 E-mail: [email protected] The Conversion for The Environment Foundation (CFE) is a non-profit, independent non-governmental organization with offices in Russia and the Netherlands. CFE works to promote the use of defense industry's technologies and its potential for peaceful environment protection tasks worldwide. Zig-Zag Venture Group 254 Fifth Avenue, New York, NY 1001 USA Tel: (212) 725-6700 Fax: (212) 725-6915; (713) 416-0770 Max Bravemen, Vice-President of Marketing Howard Jacobi, Director of Public Relations Moscow office: 69 Prospect Mira, Moscow, 1291 10, Russia Astrakhan Chamber of Commerce and Industry 50 Zhelyabov Street Astrakhan, 414040, Russia Aleksey D. Kantemirov, President Michail A. Witver, Vice-President Tel: (8510)24-77-15 Fax:(8510)24-71-52 FYI Information Resources 1413 K Street, N.W., 10th floor Washington, DC 20005 Contact: MarshaEhli, Manager, Project Planning and Development Phone: (202)682-2394 Fax: (202) 682-2399 FYI Information Resources, a private firm, undertakes proprietary research and project development assignments related to business, political, and environmental affairs in the Newly Independent States (NIS). Founded in 1988, FYI has assembled a research and business operations staff devoted exclusively to NIS affairs that communicates regularly with a network of NIS professionals in a wide variety of industry and service sectors. FYI has a full time staff in Russia, Ukraine, and Kazakhstan. U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7- 1 8 FYI provides a wide range of services and also publishes and distributes a number of directories, reports, and periodicals which focus on doing business in the former Soviet Union. Gconomics Institute 14 Hillcrest Avenue Middlebury, VT 05753 Contact: Robert A. Jones, Chairman of the Board Michael P. Claudon, President Phone: (802) 388-9619 Fax: (802) 388-9627 The Geonomics Institute is a private, non-partisan, non-profit organization devoted to seeking solutions to international economic problems. Established in 1987, the Institute brings together small groups of businesspeople, scholars, and policy makers from around the world for frank discussions in a seminar setting. Publications: Competing for Soviet Business: Reshaping U.S. Foreign Economic Policy and American Business Attitudes, Kathryn Wittneben, Geonomics Institute, December 1991. "Defense Conversion: Achieving U.S. -Russian Cooperation for an Orderly Build-Down and Economic Renewal," a report on Geonomics' Gateway Seminar held October 15-18, 1992. Greenpeace 1436 U Street, NW Washington, DC 20009 Contact: Joshua Handler, Research Coordinator Phone: (202)319-2516 Fax: (202) 462-4507 Telex: 89-2359 International Action Commission for St. Petersburg Co-Chairs: Dr. Henry Kissinger and Mayor Anatoliy Sobchak Contact: George Handy Phone: (202) 775-3 1 78 David Pepper (202) 775-3 1 06 Eugene A. Baranov Phone: (202) 232-0975 Deputy Trade Representive CSIS of Russia in the U.S.A. Borris V. Vladimirov Phone: (202) 232-5988 U.S. Department of Commerce Julv W9t> RDBD 5 - St. Petersburg 7- 1 9 Manager, Import-Export, (202) 234-7170 High-Tech Trade & Investment, Fax: (202)232-2917 Trade Rep. of Russia, Telex: 451-324 2001 Connecticut Ave., N.W. Washington, DC 20008 The Commission is working on plans to clarify critical issue and to recommend near-term actions to reduce obstacles to foreign investment in the St. Petersburg region. The Commission operates through the following joint Western-Russian Working Groups and University Consortium. Public Education for Business Growth Unstable Business Conditions, Infrastructure, Defense Diversification, Energy Conservation and Management, Banking and Investment, Modernization and Development of the Port, Agribusiness Development, International University Consortium International Center for Information, Inc. (ICI) 4040 IDS Center 80 South 8th Street Minneapolis, MN 55402 Contact: Zenas Hutcheson, President Phone: (612)376-0643 Fax: (612) 339-8240 E-Mail: [email protected] ICI publishes information and conducts research on Russian natural resources exploration and exploitation, the economics of industry capabilities and opportunities, and science & technology achievements and availability. ICI publications include the annual Geological Enterprises of Russia and Russian and CIS Hard Mineral Geological Enterprises, a quarterly publication providing summary descriptions of mineral reserves for which Russia is seeking Western development partners. ICI additionally has a series of databases on proven and prospective mineral reserves. ICI also prepared a transportation directory for the CIS that is a comprehensive directory with detailed information on transportation hubs affecting importing and exporting to and from the CIS. The directory listings describe: — seaports ~ rail stations U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-20 — airports — customs posts — foreign trade transportation offices Information on the transportation hubs include seasons open (seaports), types of loading /unloading equipment available, and other specifications Listings of customs posts and transportation offices include addresses and phone/fax numbers A series of regional maps illustrate the transportation routes. International Executive Service Corps Stamford Harbor park 333 Ludlow Street Stamford, CT 06902 Mailing Address: P.O. Box 10005, Stamford, Connecticut 06904-2005 Contact: Fred Hudson, Vice President, NIS & Europe Robert Monak, Program Manager, NIS & Europe Deirdre M. Buell, Project Officer, Russia Maria Terry, Project Officer, Russia Phone: (203) 967-6000, Toll free Tel: 1-800 243-4372 Fax: (203) 359-3233 E-Mail: [email protected] Moscow Country Director - Ed Morrison Senior Project Manager - Leonid Vorontsov Resident Advisor, Defense Conversion - Wilen Sheglik Project Manager - Irina Golubych 25-3 Tsvetnoy Boulevard, 5th Floor, Moscow, Russia 103051 Phone: (01 1-7-501) 929-981 1 (switchboard) Fax: • (01 1-7-501) 929-9812 Easylink: 63779442 E-mail: [email protected] Southern Russia Region Regional Country Director - Oleg Maslikov Deputy Country Director - Elina Semykina Office manager - Helena Sukhova U.S. Department of Commerce Julv l^> RDBD 5 - St. Petersburg 7-21 17, Soborny Street, Suite 501 Rostov-On-Don, Russia 344077 Office Tel: 011-7-8632-62-50-61 Office Fax: 011-7-8632-62-43-01 E-mail: [email protected] St. Petersburg Regional Country Director - Andrei Shilenko Resident Adviser - David Kerry Assistant Resident Advisor - Dimitri Sevalkin 6 Proletarskoy Diktatury Square, Office 327 St. Petersburg, Russia 193124 Office Tel: (01 1-7-812) 271-56-43 or: (01 1-7-812) 271-71-45 Office Fax: (011-7-812)271-56-45 Easylink Addesss: 62502420 E-mail: /g=st.peterburg/s=iesc/o=customers/admd=sovmail/c=su/@sprint.com Yekaterinburg Country Director - Thomas Korolyov Resident Advisor - Timothy Stock Deputy Country Director - Galina Vaskova 44 Schmidta Street, Yekaterinburg, Russia 62014 Phone: (01 1-7-3432) 22-26-37 or (01 1-7-3432) 22-67-36 Tel/Fax: (01 1-7-3432) 22-26-39 Tel/Fax: (01 1-7-3432) 22-97-98 Easylink Address: 62894859 E-Mail : raymond . j asica@so vcust . @sprint . com Vladivostok Regional Country Director - Dennis Demaine Deputy Director - Vyacheslav Mikhailyk "Slava" Sukhanova 3 A, Office 5 Vladivostok, Russia 690029 Tel: 011-7-4232-265-321 or 011-7-4232-265-330 Fax:011-7-4232-267-476 Easylink Address: [email protected] Note: 15 hours ahead EST The International Executive Service Corps (IESC) has been retained by the Defense Nuclear Agency to facilitate joint business initiative that meet the requirements of the Nunn-Lugar program. IESC's tasks include assisting with one of more of the following: U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-22 1) provide additional information to US industry on Russian enterprises qualified for this program; 2) facilitate contacts between the parties; 3) provide on-site technical assistance to Russian companies in such areas as to- a) how to conduct business talks with western companies, b) how to develop business plans and other presentations for potential partners, c) how to establish contact with potential US partners; and d) assistance in resulting conversations and negotiations. IESC is a not-for-profit organization created in 1964 to provide assistance to the private sector in developing countries. These activities are primarily funded by the Agency for International Development. IESC is currently active in 55 countries, and since 1992 has been particularly active in the New Independent States (NIS) of the former Soviet Union. Today, IESC has offices in eight republics of the NIS IESC has six offices in Russia - Moscow, St. Petersburg, Rostov-On-Don, Krasnoyarsk, Vladivostok and Yekaterinburg - and has provided assistance to over 350 Russian enterprises, including several of the companies included in this directory. IESC encourages U.S. companies to contact the Stamford office for more information on companies in the NIS. International Integration Association (IIA) P.O. Box 33 Moscow, 107120, Russian Federation Contact: Sergey V. Kortunov Phone: (0 1 1 -7-095) 244- 1 5-23 Fax: • (011-7-095)253-09-82 The Association unites Russian leading defense enterprises and research institutions in their effort to promote comprehensive integration of Russian hi-tech industries into the world market economy. The Association seeks to achieve this goal through establishing direct links and ties between its members at home and abroad, identifying promising areas and elaborating mutually beneficial joint projects and programs of international cooperation, utilizing for this purpose U.S. Department of Commerce July l1*** RDBD 5 - St. Petersburg 7-23 Russian advanced technologies, know-how, production and manpower potential in such fields as aerospace and nuclear industries, communications, transportation and ecology, as well helping to create favorable environment for foreign investment in the Russian economy. Jeffries & Associates, Inc. 17200 Hughes Road. Poolesville, MD 20837 Director: Francis J. Jeffries Phone: (301) 972-8034 Pub.: Soviet Economic Conversion: Perceptions, Problems and Prospects, 1990 KPMG Peat Marwick 2001 M Street Washington, DC 20036 Contact: Francis A. DiBello, Partner Matthew Keegan, Senior Consultant Phone: (202) 467-3088; (202) 467-3415 Fax: (202) 293-5457 KPMG Peat Marwick is an international accounting and management consulting firm. With 78,000 employees in 128 countries, the firm has expertise in the full range of functional applications ranging from Aerospace, Defense & Commercial space to manufacturing, health care, and education. KPMG has been working in Russia and Eastern Europe since the early 80' s and currently maintains an office in Moscow and the capitals of many of the other eastern Europe nations. The Mariska Group, Inc. (MGI) 96 Woodbine Road Stamford, CT 06903 Contact: Mark D. Mariska, Chairman of the Board Phone: (203)329-7747 Fax: (203) 329-0568 MGI conducts commercial and consulting operations in the Russian Federation, working from offices in Connecticut and in Moscow. Through joint ventures registered with the Russian government, MGI is engaged in consumer marketing activities across Russia, including a retail store in Moscow selling Russian manufactured products. MGI has also formed AKVISTA Insurance Company, a U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-24 multiple-lines insurance company, in Novokuznetsk (the Kuzbass Basin) National Foreign Trade Council, Inc. 1625 K Street NW Washington, DC 20006 Contact: J. Daniel O'Flaherty, Vice President Phone: (202) 887-0278 Oxford Dictionary Project c/o Office of the Graduate Studies Fordham University Lincoln Center Campus 140 West 62nd Street New York, NY 10023-7485 16 Stuyvesant Oval, #9D New York, NY 10009 Contact: Ilona Kloupte-Dufry Phone: (212)995-0023 Fax: (212) 995-0023 The Oxford Dictionary Project is presently preparing the first Russian-English- Russian Dictionary of Business and Economic Terms The Project is a joint effort by a team of scholars from the Russian Academy of Sciences at the Institute of World Economy and International Relations and a team from Fordham University School of Law. Once current funding obstacles are surmounted, the Project expects to have the Dictionary published by the Oxford University Press in mid- 1995. Russian Business Publications Associates 1316 Third Street Suite 3 1 1 Santa Monica, C A 90401 Contact: Sergei Zamascikov Phone (310)395-0707 Fax: (310)451-4580 Russian Business Publications Associates is a California-based company. U.S. Department of Commerce July W*>6 RDBD 5 - St. Petersburg 7-25 specializing in providing information and consulting services to companies and entrepreneurs interested in the exciting emerging markets. They have recently published the first issue of a newsletter called Business Opportunities in Russia (BOR). BOR offers a variety of concrete investment, joint-venture and trade opportunities, made available directly by the Russian principals for BOR subscribers. It tells of business opportunities in Russia and elsewhere in the former Soviet Union. Every issue will feature a business and economic profile of a Russian republic, region or oblast. BOR's staff is also ready to assist interested companies an individuals with marketing, feasibility, risk assessment studies, and provides negotiation and legal assistance in Russia. Russia Business Publications Associates began publishing a newsletter on corporate security and risk assessment in Russia and a digest of recent Russian scientific achievements. RinC International Publications P.O. Box 21266 Washington, DC 20009 Contact: Oleg Konstantinov Phone: (202)483-5114 Fax: (202) 265-8750 Russia in Conversion (RinC) is a twice-monthly newsletter providing information and analysis of defense industry and ownership conversion opportunities in Russia and the Independent States. It includes several sections (US and Western Aid; Legislation; Aerospace; MTNATOM/Closed Cities; Business Profile; and Conferences), and has a network of correspondents I the ten largest industrial cities of the former Soviet Union. Russian Business Journal, St. Petersburg Business Report 60 East 42nd Street, Room 3219 New York, NY 10165 Contact: Robert Kaufman, Creative Strategies Inc., USA Phone: (212)682-2977 Fax: (212) 682 0373 Russian Business Journal is a monthly four-color magazine about doing business in Russia: market conditions, investments, rules and regulations, industry analysis, written in English by editors in Russia for US and Canadian businessmen. The St. Petersburg Business Report is a bi-monthly newsletter written by the same editors in English, with special U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-26 emphasis on business and cultural conditions in St. Petersburg. The Russian contact for both is Redd, P.O. 151, 191014, St. Petersburg, Russia. Phone and fax: 7-612-275-8466 Sovconsult, Inc. 1250 Connecticut Ave., NW Suite 700 Washington, DC 20036 Phone: (202) 637-9123 Fax: (202) 785-4360 SOVCONSULT is a business consultancy facilitating business, trade and investment opportunities between Western firms and organizations in Russia and the Newly Independent States. SOVCONSULT represents the Defense Industrial Investment Company (DIIC), a western style investment banking firm formed to address the need for Russian/NIS defense organizations to make the transition from state-run enterprises to independent, private and profitable ventures. Among other affiliations in Russia and the NIS are the Institute for Defense Studies (INOBIS) and the Etalon Institute, working in the areas of defense conversion and telecommunications. SOVCONSULT is headquartered in Washington, DC with offices in Los Angeles and Moscow. Soviet American Venture Initiative (SAVI) University of Maryland-College of Behavioral and Social Sciences USSR Academy of Sciences Central Economics and Mathematical Institute (TsEMI) Contact: Dr. Warren R. Phillips Department of Government and Politics 2181 LeFrandHall University of Maryland at College Park College Park, MD 20742-8221 Phone:(301)405-4137 Dr. Zurab Yakobasvili USSR Academy of Sciences, TsEMI 32 Krasikova Moscow 117418 Phone: (011-7-095) 129-64-91 A U.S. -Soviet joint venture promoting bilateral and multilateral economic and scientific interests in the U.S. and USSR, in the fields of: conversion; technology transfer; ecology; energy; agriculture and agriculture distribution systems, building U.S. Department of Commerce July W96 RDBD 5 - St. Petersburg 7-27 and land use development; telecommunications and networking. U.S.-Russia Business Council 1701 Pennsylvania Avenue, N.W. Suite 650 Washington, DC 20006 Contact: Robert Strauss, President Eugene Lawson, Executive VP Phone: (202) 956-7666 Fax: (202) 956-7674 United States Council for International Business 1212 Avenue of the Americas New York, NY 10036-1689 Phone: (212)354-4480 U.S.-Russia Defense Conversion Subcommittee Members U.S. Vice-Chair Barry E. Carter Deputy Under Secretary for Export Administration U.S. Department of Commerce Contact: Daniel C. Hurley, Jr. Phone: (202)482-1455 Fax: (202)482-2387 E-mail: [email protected] Members Ambassador Richard Morningstar Coordinator for NTS Technical Assistance U.S. Department of State Ashton Carter Assistant Secretary for International Security Policy U.S. Department of Defense Ambassador John Ferch Deputy Under Secretary for International Affairs U.S. Department of Labor U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-28 Richard Williamson Deputy Assistant Secretary for Export Assistance U.S. Department of Energy Paul Ashin Program Analysis and Coordination Office U.S. Agency for International Development Michael Froman Deputy Assistant Secretary for Eurasia & the Middle East U.S. Treasury Department Perter Almquist Defense Control Specialist U.S. Arms Control and Disarmament Agency U.S.-Russia Defense Conversion Subcommittee Russian Co-Chair Valeriy Mikhaylov Chief, Department of Defense Industries, Russian Cabinet of Ministers Members Yevgeniy Aleksandrovich Rogovsky Chief of Department Ministry of Foreign Economic Relations Sergey Vadimovich Kortunov Chief of Department Ministry of Foreign Affairs Boris Dmitrievich Urlov Chief of Department Ministry of Science of Russia Vladimir Grigorievich Vinogradov Chairman of Committee Ministry of Atomic Energy U.S. Department of Commerce Julv l1^ RDBD 5 - St. Petersburg 7-29 Valeriy Aleksandrovich Dementyev Deputy Chief of Head Department Ministry of Defense Alexey Konstantinovich Ponomarev Director of the Inter-Departmental Analytical Center Albert Fyodorovich Trifonov Russian Committee for the Defense Sectors of Industry Vladimir Vasilievich Salo Chief of Department Ministry of Economy SELECTED BIBLIOGRAPHY OF DIRECTORIES AND PUBLICATIONS American Business Involvement in Defense Conversion in the Former Soviet Union: Opportunities, Constraints, and Recommendations. Presents problems and opportunities in Ukrainian and Russian defense conversion. Also discusses U.S. government and private sector involvement in Russian defense conversion. Kathryn Wittneben, American Committee on U.S. -Independent States Relations, December 1992. Phone (202) 234-7370. A Guide for National Export Control Programs . U.S. Department of Commerce, Bureau of Export Administration, September 1993. C/o Bruce Cromack; (202) 482-4252 Post-Soviet Business Monitor. Focuses on topics connected with defense conversion in the former Soviet states. S.I.M./Exchange Publications and Business-TASS, 2014 P Street, N.W., Suite 300, Washington, DC 20036. Phone: 800-776-1314; Fax: 202-296- 2805. Post-Soviet Nuclear Complex Monitor. Focuses on nuclear materials management and facility cleanup, as well as dismantlement of the Soviet nuclear complex. S.I.M./Exchange Publications and Business-TASS, 2014 P. Street, N.W., Suite 300, Washington, DC 20036. Phone: 800-776-1314; Fax: 202-296-2805. U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 7-30 CHAPTER 8 - SOURCES OF FINANCING FUNDS BACKED BY U.S. GOVERNMENT AND MULTILATERAL INSTITUTIONS INVESTMENT FUNDS OPERATING IN THE NIS (Condensed from BISNIS publication: Sources of Finance for Trade and and Investment in the NIS, August 1995, and other sources) Investment funds operating in the Newly Independent States (NIS) vary widely. A key difference is that between funds supported by the U.S. Government and multilateral institutions, versus those managed by private firms without government support. U.S. Government and multilateral funds work as venture capital funds in the NIS, where they can provide start-up financing and are receptive to strategic partners, including the U.S. partners. Private funds, often having entered the market solely because of new opportunities in portfolio investment, are not interested in providing venture capital. All funds are expected to be self-financing and chose investments based on their prospect of their long-term success. This list is not comprehensive and will change as more information becomes available. Privately-managed funds are listed alphabetically and are included here for informational purposes only. Inclusion in this list does not constitute U.S. government endorsement of any private fund FUNDS BACKED BY U.S. GOVERNMENT AND MULTILATERAL INSTITUTIONS AGRIBUSINESS PARTNERS INTERNATIONAL Region: NIS Manager: ' America First Companies Capitalization: OPIC guarantee: $100 million. Still raising capital. Funds invested: n/a investment objective: Equity and debt. Interested in start-ups and joint ventures U.S. Department of Commerce .hilv NOf. RDBD 5 - St. Petersburg 8- 1 4 Industries: Additional notes: Contact: Approximately $5 to 10 million. Agriculture, broadly defined. Includes food firms, infra-structure projects, privatization, food storage and distribution facilities Mr. Robert Peyton America First Companies 1004 Farnam Street, Omaha, NE 68102 Phone: (402 444-1630 Fax: (402) 345-8966 ALLIED CAPITAL INTERNATIONAL SMALL BUSINESS FUND Region: Manager: Capitalization: Funds invested: Global Allied Capital Advisors OPIC guarantee: $20 million n/a Invest. Objective: Equity investments in firms sponsored by qualifying U.S. small businesses. Industries: Basic manufacturing and service industries Additional notes: Contact: Mr. Cabell Williams II, President Allied Capital Corporation 1666 K. Street, NW, 9th Floor Washington, D.C. 20006 Phone: (202)331-1112 Fax: (202) 659-2053 CARESBAC-St. Petersburg Region: Russia (St. Petersburg area). Manager: Small Enterprise Assistance Funds (SEAF), formerly the CARE U.S. Department of Commerce RDBD 5 - St. Petersburg 8-2 July 1996 Capitalization: Funds invested: Invest. Objective: Industries: Additional notes: Contact: Small Business Assistance Corporation U.S. Department of Agriculture: $3,500,00 grant. $737,750 (April, 1995) Equity (minority position), and long-term debt. SEAF funds operate on commercially-sustainable principles, investing primarily through equity in amounts from $75,000 to $250,000, with an average size of $150,000. Small to medium-sized businesses of between 15 and 100 employees with majority Russian ownership and an annual ruble turnover of between $100,000 and $2 million are preferred. Food processing and distribution, "green" enterprises, light manufacturing, construction industry suppliers and business service providers. Technical support to investees will be provided through organizations such as the Citizens' Democracy Corps, the International Executive Service Corps and the Volunteers in Overseas Cooperative Assistance. 190008, St. Petersburg, Russia Lermontovsky Prospekt 7, 2nd Floor David Lingelbach, General Director Phone: ++7 (812) 114-2632 Fax: ++7(812) 119-6337 Thomas Gibson, President Small Enterprise Assistance Fund 1401 New York Avenue, NW, Suite 1000 Washington, D.C. 20005 Phone: (202)737-8463 Fax: (202) 737-5536 CEENIS PROPERTY FUND, L.P. Region: Manager: Capitalization: U.S. Department of Commerce RDBD 5 - St. Petersburg NIS Eastern and Central Europe Auberndale Central Europe Reality Management, Inc. OPIC guarantee: $20 million plus private capital 8-3 Juh 1** 4 Funds Invested: N/A Investment Objective: Property development Industries: Additional notes: Contact: Light manufacturing, office, warehouse and distribution center development projects. Will also develop property held on long term leases Mr. Christopher X. Soles, Managing Director, CEENIS Property Fund 327 Washington Street, 3rd Floor Wellesley, MA 02181 Phone:(616)431-2600 Fax: (617)431-1007 Internet: 103275. 2107@ compuserve.com THE CENTRAL ASIAN-AMERICAN ENTERPRISE FUND Region: Kazakhstan, the Kyrgyz Republic, Uzbekistan, Tajikistan and Turkmenistan. Manager: Capitalization: Funds Invested: Invest. Objective: Industries: Central Asian- American Enterprise Fund, Inc. . U.S. Government: $150 million over the next two to three years. Additional funds sought from private sector co-investment. $3 million (May, 1995) Equity and debt financing to small and medium sized enterprises that are commercially viable and offer a reasonable prospect for an acceptable rate of return on investment. Investments must be accompanied by local invest component. Joint ventures with financial participation encouraged, with preference given to U.S. partners but others from Europe and Asia also accepted. Typical investments will range from $500,000 up to $5,000,000. Enterprises in infra-structural development such as food processing, distribution and transportation, as well as consumer goods and services. U.S. Department of Commerce RDBD 5 - St. Petersburg 8-4 July 1996 Additional Notes: Technical assistance will be provided alongside investment. The Fund also administers a small business loan program through the Asia Crossroads Loan Co. Individual loans will range from $1,000 to $50,000 and will have a maturity of up to three years. Contact: Central Asian-American Enterprise Fund 595 Madison Avenue New York, NY 10022 ph.: (212)826 2100 Fax: (212) 826 8844 Central Asian- American Enterprise Fund 1 , Turab Tula Street Tashkent 700066, Uzbekistan Ph: ++7(3712)89 1135 Fax: ++7(3712)89 11 38 Central Asian- American Enterprise Fund 531, Seyfullina Street Almaty 480083, Kazakhstan Ph: ++7(3272)637 086 Fax: ++7 (3272) 694 589 Central Asian- American Enterprise Fund 219 Chui Prospect Bishkek, Kyrgyz Republic Ph: ++7(3312)264 295 Fax: ++7 (3312) 621 230 DEFENSE ENTERPRISE FUND Region: Russia, Ukraine, Kazakhstan and Belarus. Manager: Defense Enterprise Fund, Inc.. Capitalization: Department of Defense: $27 million. Funds Invested: Approximately $13 million. Invest. Objective: Equity and debt. The fund will make investments only in joint ventures involving privatized enterprises or enterprises that commit in writing to privatization. An enterprise will be considered privatized when greater than 50% of the ownership and controls is U.S. Department of Commerce Jvilv W^ RDBD 5 - St. Petersburg 8-5 in the private sector. At least one of the partners in any joint venture should be from a country outside the NIS, with preference given to joint ventures with U.S. involvement. Investments will be diversified among smaller enterprises or spin-off enterprises that have converted or are in the process of converting, and start-ups formed by former defense or military personnel. Investments range from $1 to $8 million. Industries: Enterprises that include personnel and/or facilities currently of formerly involved in research, development, production or operation and support of the defense sector of four Republics of the former Soviet Union. Particular emphasis given to facilities which helped to produce weapons of mass destruction, as well as firms associated with the production of command, control and communications equipment for military forces associated with these weapons. Additional Notes: Contact: Tom Maletta, Chief Financial Officer Defense Enterprise Fund 20 Custom House Street Ste. 1040 Boston, MA 021 10 Ph: (617)261 1929 Fax: (617) 261 1935 Eurasia Foundation 1527 New Hampshire Avenue, NW Washington, DC 20036 Contact: Kathryn Wittneben, Senior Program Officer Phone: (202) 234-7370 Fax: (202) 234-7377 E-mail: [email protected] The Eurasia Foundation is a privately managed grant-making organization established with financing from the U.S. Agency for International Development (AID). The Eurasia Foundation supports technical assistance, training, educational and policy programs in the New Independent States (NIS) of the former Soviet Union (excluding the Baltic States) covering a wide range of activities in economic and democratic reform. Eurasia Foundation grants will be made to American organizations with partners in the NIS and directly to NIS organizations. The Eurasia Foundation's initial programmatic focus will include the areas of U.S. Department of Commerce RDBD 5 - St. Petersburg 8-6 July 1996 private sector development, public sector reform, and media and communications. European Bank for Reconstruction and Development (EBRD) One Exchange Square London EC2A 2EH United Kingdom Contact: Office of the U.S. Executive Director Phone: (01 1-7-44-71) 338-6569, 338-6569 EBRD, the newest of the world's five multilateral development banks, began operation in April of 1 99 1 . It is the first international institution to provide financing exclusively in Eastern and Central Europe and the former Soviet Union. Based in London, the EBRD is capitalized at ECU 10 billion (about 13 billion U.S. dollars). Fifty-three member countries, the European Economic Community and the European Investment Bank are represented on its board of directors. The United States, which holds 10 percent of the shares, is the largest single member country shareholder, while the European Community nations have 5 1 percent. The U.S. Executive Director supports the U.S. business community, assuring that U.S. companies directly benefit and participate in the Bank's procurement activities and financing. Companies are encouraged to bring potential projects to the Office of the U.S. Executive Director. Information regarding Bank policies and procedures is available from a number of sources, including the Office of Multilateral Development Banks, USDOC, and the National Trade Data Bank. FAR EAST REGIONAL VENTURE FUND Region: Russian Far East. Manager: Daiwa Institute of Research, Ltd. Capitalization: EBRD: $30 million, additional capital sought from private investors. Invest. Objective: The fund is intended to facilitate modernization, expansion and'or restructuring of privatized enterprises. A key criterion is strong management. Investments will range from $300,000 to S3 million Industries: Enterprises in infra structural development such as food processing, U.S. Department of Commerce Julv W^ RDBD 5 - St. Petersburg 8-7 distribution and transportation, as well as consumer goods and services. Additional Notes: Technical assistance will be provided alongside investment. The Fund also administers a small business loan program through the Asia Crossroads Loan Company. Individual loans will range from $1,000 to $50,000 and will have a maturity of up to three years. No hard liquor, tobacco or firearms, must have a western partner. contact: Jiro Yamana Daiwa Institute of Research, Ltd. 15-6FuyukiKoto-KU Tokyo 135 Ph: ++81(3)5620 5123 Fax: ++81 (3)5620 5610 FIRST NIS REGIONAL FUND Region: Manager: capitalization: NIS (60% Russia), Baltics. Baring International Investment Management limited Sovlink- American Corporation, Investment Advisor Tokobank, Local Advisor OPIC guarantee: $180 million. Investment objective: Equity, possibly convertible debt or warrants. The fund will seek whenever possible to invest in companies with foreign currency revenues or substantial export earnings potential. Investments may take the form of corporate partnerships with leading foreign partners, later stage equity financings or investment in newly privatized entities. Investments will range in size from $2 million to $10 million. Industries: Contact: About 60% targeted toward natural resource-related companies and infrastructure, including telecommunications. Also light manufacturing, consumer products and services, real estate. Nancy Curtain, Director, Institutional Group U.S. Department of Commerce RDBD 5 - St. Petersburg 8-8 July 1996 Richard Sobel, Director, Institutional Group Baring International Investment Management 155 Bishopsgate London EC2M3XY, England Ph: ++44(171)214 1708/1871 Fax:++44(214)214 1725 Douglas P. Warwick, Senior Vice President Michael Calvey, Vice President Sovlink- American Corporation 1221 Avenue of the Americas New York, NY 10020 Ph: (212)730-4868 Fax:(212)730-2871 Alexei A. Mateev, Managing Director 7, Masha Poryvayeva Street Moscow 107078, Russia Ph: ++7(501)204-70-44 Fax: ++7 (095) 975-25-78/79 FRAMLINGTON RUSSIAN INVESTMENT FUND Region: Manager: Capitalization: Funds Invested: Invest. Objective: Industries: Russia. Framlington Investments. Approximately $100 million. EBRD: $16 million, IFC: $8 million. Approximately two-thirds. Equity position of anywhere from 10-40% is possible, though 20% is preferred. 80% of the funds invested in the first year will go to companies with largely western control, however, projects will also include those with western minority shareholders Investments will be between $500,000 - $4 million, with projected average of around $2 million. Projects requiring less than $500,000 can be considered if anticipated future financing requirements will raise the Fund's total contribution above $500,000. Open to any new economically sound proposal U.S. Department of Commerce RDBD 5 - St. Petersburg Julv 1** 8-9 Additional Notes: No hard liquor, tobacco or firearms, must have a western partner. Contact: Gary C. Fitzgerald, Managing Director Robert Jenkins Framlington Russian Investment Fund 155 Bishopsgate London EC2M3XJ, United Kingdom Ph: ++44(171)374-4100 Fax: ++44(171)382-6432 Connell Gallagher, Investment Analyst 30 Konushkovskaya ul. 123242 Moscow, Russia Satellite Ph: ++7 (501) 253 4688/253 4689 Local Ph: 253 46 88/89 Satellite Fax: ++7 (501) 253 46 79 Local Fax: 253 46 79 FUND FOR LARGE ENTERPRISES IN RUSSIA See U.S. -RUSSIA INVESTMENT FUND. GLOBAL ENVIRONMENT EMERGING MARKETS FUND Region: Managers: Capitalization: Funds Invested: Investment Objective: NIS as well as emerging markets in Asia, Latin America, Europe, the Middle East and Africa. Global Environment Management Corp. $70 million. OPIC guarantee: $50 million. Approximately $20 million. Equity or equity related investments. The fund seeks significant minority positions in operating companies or projects with demonstrated cash flows, significant long-term revenue growth potential and high anticipated margins of profits from operations. Projected rates of return to the investor should substantially exceed the current risk-free return available in individual markets, with additional consideration for risks related to the volatility and U.S. Department of Commerce RDBD 5 - St. Petersburg 8-10 July 1996 Industries: Additional Notes: Contact: convertibility of currency and the degree of liquidity for the investor. Investments of up to $10 million. Environment-oriented industries, especially those engaged in developing, financing, operating or supplying infrastructure projects related to the delivery of clean energy (natural gas and renewable sources) and potable water; also wastewater treatment. Portfolio companies can arrange for OPIC investment insurance against certain political risks and debt financing for projects that involve significant U.S. ownership. Mr. H. Jeffrey Leonard, President Global Environment Management Corp. 1201 New York Ave., NW Suite 220 Washington, DC 20005 Phone: (202)789-4500 Fax: (202) 789-4508 MAJOR PROJECTS FUND Not yet launched. Managers: Capitalization: Funds Invested: Investment Objective: Industries: Additional Notes: Contact: American International Group OPIC guarantee: $300 million. N/A Equity investments Large infrastructure projects including power, transportation, natural resource development and related industries. N/A Mr. Gordon H. Taylor American International Group 70 Pine Street New York, NY 10270 U.S. Department of Commerce RDBD 5 - St. Petersburg Julv lOv* S-ll NEW RUSSIA SMALL BUSINESS INVESTMENT FUND Region: Managers: Capitalization: Funds Invested: Investment Objective: Industries: Russia: Moscow, additional cities anticipated. New Russia Small Business Investment Fund, Inc., a wholly owned subsidiary of the non-profit Fund for Democracy and Development Corporation "NRSBIF", a wholly owned Russian operating subsidiary of NRSBIF. U.S. Department of Agriculture: Additional capital will be raised from private sources. $3,650,000 (July, 1995) The NRSBIF extends financing to small Russian businesses and Russian-U.S. joint ventures through Russian commercial banks. Businesses normally eligible for NRSBIF support will employ less than 200 employees, have no more than 25% state ownership and have an asset value of less than the U.S. dollar equivalent of $2,500,000. Initially financing will be in the rubles, but the Fund hopes to eventually offer dollar financing. Investments currently range from $50,000 to $200,000, in rubles. Diversified. Additional Notes: This program was created to promote sound commercial lending in Russia. Lending is provided through selected Russian commercial banks. Contact: Jack I. Healer, President NRSBIF 1 50 1 M Street, NW, 7th Floor Washington, DC 20005 Phone: (202)466-4700 Fax: (202) 223-4826 e-mail: [email protected] Vladimir A. Drovossekov, General Director Corporation "NrsbiF" Dokuchaev Pereulok #4 107078 Moscow, Russia U.S. Department of Commerce RDBD 5 - St. Petersburg 8-12 July 1996 Satellite Ph/Fax: ++7(501-883-7095 Local Phone: ++7 (095) 975 4982 (975) 1488/207 8483 e-mail: [email protected] NEW EUROPE EAST INVESTMENT FUND Region: Manager: Capitalization: Funds Invested: Investment Objective: Industries: Additional Notes: Contact: NIS, Central and Eastern Europe Capital Research International (London) $130 million. ERBD: $25 million. IFC: $8 million Only one Russian investment as of end 1994. Equity, up to 20% stake. Interested in privatized companies or newly established ventures that have some Western management. Investments range from $5 - $15 million. Diversified No hard liquor, tobacco or firearms, must have a western partner. Lam Nguyen-Phuong, Vice President or Koenraad Foulon Capital Research International 25 Bedford Street London WC2E9HN Ph: ++44(171)257 6700,257 6764 Fax: ++44(171)257 6767 REGIONAL VENTURE FUND FOR RUSSIAN COMPANIES IN FAR EAST AND EASTERN SIBERIA Region: Manager: Capitalization: Russian Far East and Eastern Siberia. n/a n/a U.S. Department of Commerce RDBD 5 - St. Petersburg Juh 1** 8-13 Funds Invested: Investment Objective: Industries: Contact: n/a Equity investment in private sector enterprises (maximum 25% state-owned) with up to 5,000 employees. Preferred minimum is $300,000, maximum $1.5 million. Diversified. Mr. Martin Nicholls Regional Fund for Russian Companies in Far East and Eastern Siberia, c/o EBRD One Exchange Square London EC2A 2EH, United Kingdom Ph: +44 171 338 6269 Fax: +44 171 338 6119 RUSSIA PARTNERS FUND Region: Manager: Capitalization: Funds Invested: Investment Objective: Industries: U.S. Department of Commerce RDBD 5 - St. Petersburg Russia/NIS Paine Webber Incorporated Mitchell Hutchins Asset Management, Investment Advisor EEC Company, Local Advisor Closed at $155 million in 1994, however, now opened for a second subscription for up to $200 million. Fully insured by OPIC. Russian government: $5 million, and has given a $20 million "back-door" guarantee. n/a Equity and quasi-equity securities of both new and expanding enterprises in Russia, including newly privatized. No more than 15% of the Fund's assets will be invested in any one portfolio company nor more than 25% in any one business sector ventures. Companies with Western strategic partners are considered desirable. The average investment size is $2 to $10 million. Telecommunications, manufacturing, natural resource processing, pharmaceuticals and consumer goods. No investments that will cause environmental damage in Russia, 8-14 July 1996 gg or that will have a deleterious impact on the U.S. economy. Additional Notes: Whenever possible, the Fund will attempt to use its investment to leverage loans from other sources, such as EBRD or the IFC. Contact: Drew Guff, First Vice President Paine webber Incorporated 1285 Avenue of the Americas New York, NY 10019 Phone: (212)713-3214 Fax: (212)713-1087 Lauralee Raddatz, Analyst Paine Webber Incorporated - Russia Phone: ++7(095)207 9140 Fax: ++7(095)925 7917 RUSSIA SMALL BUSINESS FUND Facility to provide credits for micro and small enterprises in Russia, provided by European Bank for Reconstruction and Development (EBRD) The EBRD has established links with various financial intermediaries to provide financing for projects that are too small to be funded directly. The EBRD also assists small- and medium-sized companies in ways not directly related to project finance, but include trade facilitation and guarantee facilities extended to local financial institutions. These programs include: 1. Equity Participation in Investment or Venture Capital Funds 2. Equity Participation in Investment or Commercial Banks 3. Bank to Bank Loans 4. Co-financing Projects Together with Local Investment of Commercial Banks 5. Co-financing Projects Together with Foreign Banks (CEAL) The EBRD has established a line of co-financing with the International Moscow Bank This financing is available only for private sector enterprises. Loans range from $500,000 U.S. Department of Commerce Julv W^ RDBD 5 - St. Petersburg 8-15 to $8 million. The Russia Small Business Fund provides loans for financing small enterprises (fewer than 50 employees). Finance is available in U.S. dollars and rubles indexed to dollars. It offers loans up to $50,000 and, in exceptional circumstances, up to $75,000. An additional component of this fund is the micro credit facility providing loans from $100 to $30,000 for a period of 1-24 months. The Small Business Fund is currently operating in Nizhny Novgorod, Novosibirsk, Tomsk, Tula, Togliatti, Samara, and St. Petersburg. Contact: Mr. Dmitry Mercuriew International Moscow Bank Ul. Pushkinskaya 5/6 103009 Moscow, Russia Phone: +7-501-944-1002 Fax: +7-501-944-1009 EBRD Russia Small Business Fund Contact Information Nizhny Novgorod Association Commercial Bank ul. Beketova 73 603600 Nizhny Novgorod, Russia Lubov N. Guseva Phone: +7 8312-689-206 Fax: +7 8312-683-450 Nizhegorodsky Bankirsky Dom Bank Ploschad Gorkogo 6 603000 Nizhny Novgorod, Russia Andrei Morov Phone: +7 8312-333-337 Fax: +7 8312-343-948 Sberbank ul. Bolshaya Pokrovskaya 3 603005 Nizhny Novgorod, Russia Evgeniy Bolonin Phone: +7 8312-390-852 Fax: +7 8312-391-583 Novosibirsk U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 8- 1 6 Mosbusiness Bank ul. Lenina 12 630099 Novosibirsk, Russia Anatoly Zviglin Phone: +7 3832-22-09-41 Fax: +7 3822-22-18-31 Kuzbassotsbank pr. Lenina 90/4 Kemerovo 630099 Novosibirsk, Russia Nelly Morozenko Phone; +7 3842-539-900 Fax: +7 3842-537-677 Tomsk Mosbusiness Bank ul. Lazareva 3a 634040 Tomsk, Russia Vladimir Gonchar Tel/Fax: +7 3822-768-571 Kuzabassotsbank ul. Gertsena 18 634050 Tomsk, Russia Nikolai Potapov Phone: +7 3822-233-304 Fax: +7 3822-232-552 Tula Orbitabank Komsomolskaya 54 300002 Tula 2, Russia Tayana V. Igonina Tel/Fax: +7 0872-775-327 First Commercial Tula Bank ul. Oktyabrasjaya 36 300002 Tula, Russia Sergey Isaev Phone: +7 0872-345-977 U.S. Department of Commerce July loo<, RDBD 5 - St. Petersburg 8- 1 7 Fax: +7 0872-772-079 Mosbusiness Bank Krasnoarmeisty Proezd 25 300341 Tula, Russia Mr. Shimayev Tel/Fax: +7 0872-316-789 Togliatta and Samara Avtovazbank ul. Novopromyshlennaya 22a 445009 Togliatti, Russia Elena F. Yefimova Phone: +7 8469-221-797 Fax: +7 8469-221-708 St. Petersburg Petrovsky Commercial Bank ul. Ruzovskaya 8 198013 St. Petersburg, Russia Marina Kanunnikova Phone: +7 812-167-1512 Fax: +7 812-316-7443 Mosbusiness Bank pr. Metallistov 115 195197 St. Petersburg Alexey A. Stoletov Tel/Fax: +7 812-540-6824 Avtovazbank ul. 2-ya Sovetskaya 3/7 193036 St. Petersburg Maria A. Gibizova Phone: +7 812-277-4836 Fax: +7 812-277-4180 RUSSIAN TECHNOLOGY FUND (RTF) U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 8-18 Contact: Mr. Valentine Levitsky, Investment Manager, RTF- St. Petersburg, 27 Millionaya Street, Apt.49, St. Petersburg, Russia, 191186 Ph: (812)312-4302 Fax:(812)311-7758 E-mail: [email protected] The Russian Technology Fund invests in small Russian companies which are focussed primarily in the commercial exploitation of technology products in the domestic markets, although transfer of technology abroad may also be financed. RTF investments are primarily in equity and range from $200,000 to $500,000. RTF is a State of Delaware limited partnership based in New Jersey. The principal investors are the EBRD and the IFC which account for 50 percent of the fund's total commitment. Other investors are the Finish National Fund for Research and Development (SITRA), Top Technology Limited and Nauka Service, a St. Petersburg-based association. SMALL ENTERPRISE EQUITY FUND Region: Manager: Russia (Nizhny Novgorod area). Small Enterprise Assistance Funds (SEAF), formerly CARE Small Business Assistance Corporation. Capitalization: Funds Invested: ERBD: $5 million. SEAF is in the process of making four investments, no dollar amount given (July 1995). Investment objective: Equity (minority position), and long-term debt. Small-to medium- sized businesses of between 15 and 100 employees with majority Russian ownership and an annual ruble turnover of between $100,000 and $2 million are preferred. SEAF funds operate on commercially-sustainable principles, investing primarily through equity in amounts from $75,000 to $250,000 with an average size of $150,000. Industries: Food processing and distribution, "green" enterprises, light manufacturing, construction industry-suppliers and business service providers. Additional Notes: Technical support to investees will be provided through U.S. Department of Commerce RDBD 5 - St. Petersburg lul\ 8-19 Contact: organizations such as the Citizens' Democracy Corps, the International Executive Service Corps and the Volunteers in Overseas Cooperative Assistance. No hard liquor, tobacco or firearms, must have a western partner. Russia.Nizhny Novgorod 603000 150 Gorky Street, Rm. 707 John McGuire, General Director Phone: ++7 (8312) 35 42 85 Fax: ++7(8312)35 43 45 Thomas C. Gibson, President Small Enterprise Assistance Funds 1401 New York Ave., NW, Suite 1000 Washington, DC 20005 Phone: (202)737 8463 Fax: (202) 737 5536 SMOLENSK REGIONAL VENTURE FUND Region: Manager: Capitalization: Funds Invested: Smolensk Oblast, Russia Siparex $20 million. EBRD: $12 million. n/a Investment objective: Equity of up to 49% of capital. This fund will concentrate on facilitating modernization, expansion, and/or restructuring of privatized companies. Investments range from $300,000 to $1.2 million. Industries: No hard liquor, tobacco or firearms, must have a western partner. Additional Notes: The Fund will provide some technical assistance alongside investment. Contact: Mr. Philippe Lambert, Investment Manager Siparex 139 rue Vendome 69006 Kyon, France Phone: ++33 7852 41 07 U.S. Department of Commerce RDBD 5 - St. Petersburg 8-20 July 1996 Fax: ++33 78 52 61-63 Mr. Henry Oliva, Project Manager SIGEFI Vorobiova ul. 17 214015 Smolensk Phone: ++7(081)223 4789 Fax: ++7(081)226 0693 ST. PETERSBURG REGIONAL VENTURE FUND Region: Manager: Capitalization: Funds Invested: Russia: St. Petersburg and Leningrad Oblast. St. Petersburg Regional Venture Fund Management GmbH EBRD: $30 million. n/a Investment Objective: Equity investments in private sector enterprises with no more than 25% state ownership and up to 5,000 employees. Investment targets will not necessarily have a foreign partner or hard currency earnings; the fund is expected to focus on enterprises that have a strong position in the domestic market. Preferred minimum investment of $300,000, preferred maximum $3 million. Additional Notes: The Fund may also provide some technical assistance along with investment. Industries: Contact: No hard liquor, tobacco or firearms, must have western partner. Mr. Wolfgang Engler, Managing Partner St. Petersburg Regional Venture Fund Management GmbH Hamburger Allee 2- 1 0 60486 Frankfurt am Main, Germany Phone: ++49 (69) 79 50 00 24 Fax: ++49 (69) 79 50 00 60 URALS REGIONAL VENTURE FUND Region: Russia: Sverdlovsk, Perm and Chelyabinsk Oblasts. U.S. Department of Commerce RDBD 5 - St. Petersburg Jul\ W*> 8-21 Manager: Capitalization: Funds Invested: Fleming Investments Ltd. EBRD: $30 million. n/a Investment Objective: Equity investments in private sector enterprises with no more than 25% state ownership and up to 5,000 employees. Investments targets will not necessarily have a foreign partner or hard currency earnings; the fund is expected to focus on enterprises that have a strong position in the domestic market. Preferred minimum investment of $300,000, preferred maximum $3 million. Industries: Contact: No hard liquor, tobacco or firearms, must have a western partner. Mark V. Jarvis Urals Regional Venture Fund Fleming Investments Moscow Representative Office ul. Pushkinskaya 7/5, kv. 4 103009 Moscow, Russia Ph: ++7(095)247 9049 Fax: ++7 (095) 247 9049 George S. Horton Fleming Investments Ltd. 25 Copthall Avenue London DC2R 7DT Ph: ++44(171)638 5858 Fax: ++44 (171) 382 5000/60 U.S. CIVILIAN RESEARCH & DEVELOPMENT FOUNDATION (CRDF) Region: For the Independent States of the Former Soviet Union (FSU) Manager: U.S. National Science Foundation (NSF) Capitalization: Funds invested: $5 million gift from Mr. George Soros and a $5 million allocation from the U.S. Department of Defense's "Nunn-Lugar" program n/a Investment Objective: To advance defense conversion by funding collaborative R&D U.S. Department of Commerce RDBD 5 - St. Petersburg 8-22 July 1996 Scientific disciplines: Contact: /commercialization projects between scientists and engineers in the U.S. and in the independent states of the FSU. Level of funding $10,000 to 80,000 over a two-year period. Average grant $40,000 ($20,000 per year over two years) Priority given to FSU engineers and scientists formerly engaged in work on weapons of mass destruction. Additional notes: No proposal to exceed 20 pages in length. Send 10 copies. Civilian Research and Development Foundation 1800 North Kent Street, Suite 1 106 Arlington, Virginia 22209 Phone: 703-526-9720 Fax: 703-526-9721 E-mail: [email protected] U.S. RUSSIA INVESTMENT FUND Region: Manager: Capitalization: Funds Invested: Russia. The U.S. Russia Investment Fund, Inc. U.S. AID grants (total anticipated): $440 m. Anticipated $45 million by end of September on 10-12 projects. Investment Objective: The Fund will consider investment proposals from enterprises as long as they are commercially viable and exhibit the potential for growth and profit generation. The business should have a committed and progressive management team a coherent business plan or thoughtful vision for development. The Fund is chartered to offer financing and management assistance to privatized Russian enterprises of all sizes. Investments have ranged from $20,000 to approximately $1 1 million. Industries: Additional Notes: Diversified. This fund was formed through consolidation of the Fund for Large Enterprises in Russia and the Russian-American Enterprise Fund. TUSIRF also has a small business lending program through Russian banks and lending institutions to make small loans to small U.S. Department of Commerce RDBD 5 - St. Petersburg Juh 8-23 enterprises. Contact: Project Coordinator The U.S. Russia Investment Fund 17 State Street, 33rd Floor New York, NY 10004 Ph: (212)504 0400 Fax: (212) 668-0700 Project Coordinator The U.S. Russia Investment Fund Tsevtnoy Boulevard, 25/3, 5th Floor 103051, Moscow, Russia Satellite Ph: ++7 (501) 929-9888 Ph: ++7(095)929-9888 Fax: ++7 (095) 929 9828 Project Coordinator The U.S. Russia Investment Fund Amethyst Hotel, 5 A Tolstogo Street 680000, Khabarovsk, Russia Satellite Ph.: ++7 (5090) 160 0088 Satellite Fax: ++7 (501 0) 1 60-0 1 3 1 Ph.: ++7(421) 233 7549 Fax: ++7(421) 233 4699 THE WESTERN NIS ENTERPRISE FUND Region: Manager: Capitalization: Funds Invested: Investment Objective: Western NIS (Belarus, Moldova, and Ukraine) Western NIS Enterprise Fund, Inc. U.S. AID: anticipates capitalizing this Fund with $150 million in foreign assistance appropriations over the next 3- 4 years. n/a Equity and debt. The Fund will actively seek corporate and financial partners from the U.S., Europe, and elsewhere. The Fund's focus will be on small and medium-sized private and privatizing firms with as many as 2,500 workers, U.S. Department of Commerce RDBD 5 - St. Petersburg 8-24 July 1996 Industries: Additional Notes: Contact: although it is expected that most loans and investments will be aimed at firms that are considerably smaller than this threshold. n/a The fund will offer technical assistance alongside investment. Additionally, the fund will be encouraged to use its U.S. Government funding to attract other resources for private sector development in the three states. Scott Carlson, President Western NIS Enterprise Fund 15 W. 39th Street, 11th Floor New York, NY 10018 Phone: (212)556-9320 Fax: (212) 556-9321 Natalie A. Jaresko Western NIS Enterprise Fund 4 Muzeney Pereulok 250001 Kiev, Ukraine Phone ++3 80 (044) 291 02 80, 291 02 81, 291 02 82 Fax: ++380(044)29102 89 PRIVATE FUNDS Privately-managed funds are listed alphabetically and are included here for informational purposes only. Inclusion in this list does not constitute U.S. government endorsement of any private fund. AMERICAN INVESTMENT GROUP OF NAPLES Region: Manager: Capitalization: Funds Invested: Russia American Investment Group of Naples n/a n/a U.S. Department of Commerce RDBD 5 - St. Petersburg Jul\ W*> 8-25 Investment Objective: Industries: Contact: The Fund makes small early-stage investments in Russian projects and in U.S. Russian joint ventures. n/a Herbert Van Dyke, Chairman American Investment Group of Naples ul. Kosmonavt Volkova 14 125299 Moscow, Russia Phone: ++7(095) 156 9626 Fax: ++7(095)156 9670 BRUNSWICK FUND Region: Manager: Capitalization: Investment Objective: Funds Invested: Investment Objective: Industries: Russia Brunswick B.C. Anticipates raising $40 to $50 million. Equity Maintains active management in its holdings. $200,000 to $600,000 n/a n/a Oil and gas (oil extraction), utilities such as electrical energy and telecommunications, mineral extraction and processing, and fishing fleets. Contact: Martin Anderson, Manager Brunswick B.C. 25/3 Tsvetnoy Boulevard 103051, Moscow, Russia Satellite Phone: ++7 (501) 929 98 00 Local Phone: ++7 (095) 291 6358 Fax: ++7 (501) 929 98 01 FIREBIRD FUND U.S. Department of Commerce RDBD 5 - St. Petersburg 8-26 July 1996 Region: Manager: Capitalization: Funds Invested: Investment Objective: Industries: Russia Firebird Advisors, Ldc. $40 million. $37 million. Equity. Fund takes small passive positions in largest, most liquid Russian companies. Investments range from $500,000 to $2 million. Oil, gas, utilities, forest products, metal and mining. Contact: Andrew Tyson Trident Trust Co. 1 Capital Place Cayman Islands (809) 949 0880 (809)949 0881 FIRST INVESTMENT VOUCHER FUND This Fund was purchased by U.S. mutual fund manager Pioneer Group, Inc. in April. 1995. FLEMING INVESTMENT FUND FOR RUSSIA Region: Manager: Capitalization: Funds Invested: Investment Objective: Industries: U.S. Department of Commerce RDBD 5 - St. Petersburg' Russia. Fleming Investment Management, Ltd., London Brunswick B.C., advisors. $57.1 m. closed-end fund. n/a Equity. Oil and gas, telecommunications, utilities, mining. Jul\ W*> 8-27 automotive. Additional Notes: Trades on Dublin exchange. JUNCTION INVESTORS LTD. Region: Manager: Capitalization: Funds Invested: Investment Objective: Industries: Additional Notes: Contact: NIS, as well as Eastern Europe and China. Junction Investors, Ltd. (JTL) $50 million. n/a Equity and Debt. Preferred investments are small to medium-sized businesses with long-term growth potential. From $1 million to $5 million. Infrastructure-related industry, in particular real estate and telecommunication. JIL provides management assistance when necessary, as well a arranges for additional debt and equity funding if needed. Thomas R. DiBenedetto, President Junction Investors, Ltd. 84 State Street, 2nd Floor Boston, MA 02109 Ph: (617)248 9600 Fax:(617)248 9652 NEW EUROPE EAST INVESTMENT FUND Manager: Capitalization: Funds Invested: Investment Objective: U.S. Department of Commerce RDBD 5 - St. Petersburg Capital International, Inc. $105 million committed, $81 million finalized. n/a Equity, all private placement. Invests with western 8-28 July 1996 Industries: Contact: NEWSTAR Region: Manager: Capitalization: Funds Invested: Investment Objective: Industries: Contact: industrial partners. Diversified. Koenraad Foulon 25 Bedford Street London WC2E 9HM Ph: ++44(171)257 6764 Fax: ++44 (257) 257 67 67 NIS. Newstar, Inc. $20 million. n/a Equity. Preferred candidates are private, small to mid-size manufacturing enterprises that include a western partner. Newstar plans to be a long-term player. $2 to $5 million Construction and related industries, food processing and distribution, warehousing, light manufacturing and telecommunications. Jeffrey Hammer, Director of Investments Newstar Vspolni Pereulok, 19/20 103001, Moscow, Russia Ph: ++7-(095)-291-8338 Fax: ++7-(095)-29 1-2926 Brad Wegner, Investment Manager Newstar 1 00 1 Pennsylvania Avenue, NW Suite 480-North Washington, D.C. 20004 Ph: (202)783 4155 Fax: (202)628 5986 U.S. Department of Commerce RDBD 5 - St. Petersburg s_2o Jul\ W*> PIONEER FUND Region: Russia. Capitalization: n/a Funds Invested: n/a Investment Objective: Industries: Additional Notes: Contact: Pioneer will look into long term projects with export potential. open for new proposals Acquired the First Investment Voucher Fund in April, 1995. David Tripple or Tim Frost Pioneer Group Inc. 60 State St. Boston, MA 02109 Ph: (617)742 7825 Fax:(617)422 4281 RUSSIA AND THE REPUBLICS EQUITY PARTNERS LP. (RARE) Region: NIS, with concentration in Russia. Capitalization: n/a Funds invested: n/a Investment objective: Industries: Additional Notes: Contact; U.S. Department of Commerce RDBD 5 - St. Petersburg Equity in small to mid-sized businesses with both strong short-term profit potential and long-term growth potential. $1 to $5 million. Diversified. Seeks active role on board of directors. Herbert A. Denton, Partner Russia and the Republics Equity Partners LP. 730 5th Avenue New York, NY 10019 8-30 July 1996 Phone: (212)888-3200 Fax: (212) 888-3203 Joseph Condon, Chairman Russia and the Republics Equity Partners LP. Kamergersky Pereulok 5, Moscow, Russia Phone: ++7(095)247 9051 Fax: ++7(095)229 1327 RUSSIA VALUE FUND, LP. Region: Manager: Capitalization: Funds Invested; Investment Objective: Industries: Contact: Russia, NIS. San Antonio Capital Management $48 million Approximately $40 million Equity and debt. Primarily interested in investments in publicly traded shares. Oil and gas, power generation and transmission, telecommunications, shipping and transportation, construction materials, and industry. Attention: Marketing Director/Russia Value Fund, LP San Antonio Capital P. O. Box 690327 San Antonio, TX 78269-0327 TRUST COMPANY OF THE WEST Region: Manager: Capitalization: Funds Invested Russia Trust Company of the West $550 million n/a: U.S. Department of Commerce RDBD 5 - St. Petersburg July 1«** 8-3 1 Investment Objective: Industries: Contact: Equity and debt. TCW is primarily interested in Russian debt (representing 70% of its Russian portfolio to date), however, it is also interested in privatizing firms. TCW primarily invests along with strategic investors, and views Russian investments as long-term. 50% of investment is now in the telecommunications industry. Trust Company of the West 200 Park Avenue, Suite 2200 New York, NY 10166-0228 Phone: (212)297-4081 Fax: (212)297-4079 TEMPLETON RUSSIA FUND Region: Manager: Capitalization: Funds Invested: Investment objective: Industries: Contact: Russia Templeton Investment Management, Inc. $60 million n/a Equity and debt (debt limited to 20% of total assets). Long-term capital appreciation. Templeton is only interested in companies either about to go public or that are already listed. No start-ups, some interest in joint ventures. Diversified Bill Pingleton International Marketing Associate Templeton Worldwide 700 Central Avenue, 2nd Floor St. Petersburg, FL 33701 Fax: (813)821-7992 U.S. Department of Commerce RDBD 5 - St. Petersburg 8-32 July 1996 CHAPTER 9 INFORMATION ON RUSSIAN FEDERATION LAWS REGARDING DEFENSE INDUSTRY CONVERSION AND PRIVATIZATION RUSSIAN FEDERATION LAW ON DEFENSE CONVERSION The law on conversion was signed by President Yeltsin in March 1992 and first published openly in May of that year. Parts of it are outdated, and it is unclear what weight this law currently carries. Nevertheless, it is the most comprehensive Russian legislation related specifically to defense conversion published to date. The law defines the legal foundations for the activity of defense and associated enterprises, associations, and organizations in the conditions of the reduction or cessation of defense orders and the associated conversion of their production capacities, scientific and technical potential, and manpower resources. The law regulates relations between Russian Federation organs of state administration and organs of state administration of national-state and administrative-territorial formations, and enterprises, associations and organizations during the conversion process, and guarantees protection of the interests of all participants in that process under conditions of market relations and the use of economic methods of management. The law specifies the procedure for resolving legal, economic, and social questions arising during the conversion process, and is aimed at ensuring the most effective utilization for civil purposes of the production capacities, scientific and technical potential, and manpower resources of the enterprises undergoing conversion. SECTION 1: GENERAL PROVISIONS Article 1. Main Terms and Definitions 1 . In the present law, conversion of the Defense Industry (Hereinafter Conversion) means the partial or complete reorientation from military to civil needs, under the procedure specified in this law, of the freed production capabilities, scientific and technical potential, and manpower resources of defense associated enterprises, associations, and organizations. 2. An enterprise undergoing conversion is a production or science-and-production association or plant, design or research organization, or any other enterprise U.S. Department of Commerce .Hilv UNo RDBD 5 - St. Petersburg 9-1 irrespective of form of ownership which is engaged in scientific and (or) production activity for military needs (that is, the production, development, research, testing, maintenance, and servicing of arms and military equipment and of subassemblies, materials, and specialized technological equipment for them, as well as the extraction, processing, reutilization, and storage of specialized types of raw and semifinished materials for the production of arms and military equipment used by the Armed Forces, security organs, and law enforcement organs of the Russian Federation) at which the said activity is being reduced or terminated and where measures are consequently being implemented to produce civil output and reutilize military-technical facilities. Defense Enterprises in respect of which a decision has been adopted to terminate their activity or to eliminate them due to the technical and economic inexpediency of redesignating them, are also defined as undergoing conversion under the present law. Article 2. Principles of Conversion 1 . The reduction or cessation of production activity for military needs at a defense enterprise is founded on decisions by Russian Federation organs of state power, and also on the de facto reduction of military expenditure for these purposes. 2. The main principle of work by enterprises undergoing conversion is the use of the high-technology capabilities of the defense complex to produce output capable of competing on the foreign market. 3 . The production capacities, scientific and technical potential, and manpower resources of defense sectors of industry that are freed during the conversion process are enlisted to implement priority state targeted programs for the socioeconomic development of the Russian Federation. Here account is taken of the requirements of the national economy, the proposals of the enterprises groundwork that has been built up at the enterprises undergoing conversion, the professional skills of the personnel, and the enterprises' specialization and technical equipment. 4. Enterprises undergoing conversion make provision on a contract basis, out of funds allocated for defense needs, for the creation, preservation, and development of mobilization capacities in accordance with the targets approved by the Russian Federation Government, and also for the preservation of the necessary servicing personnel. U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 9-2 5. Conversion takes place in the context of full observance of all norms laid down by Russian Federation legislation for the social protection of the personnel of enterprises undergoing conversion. SECTION 2: ORGANIZATION, PLANNING, AND FINANCE OF DEFENSE INDUSTRY CONVERSION Article 3. Planning of the Defense Order and Conversion 1. Planning of the state defense order for the development, production, and delivery of arms and military equipment (hereinafter the Defense Order) is based on the military doctrine of the Russian Federation and its basic principles. On the basis of the military doctrine of the Russian Federation adopted by the Russian Federation Supreme Soviet, the Russian Federation Defense Ministry, with the participation of the relevant ministries and departments, enterprises, associations, and organizations, draws up long-term programs for the development of arms and military equipment and programs for the creation, preservation, and development of mobilization capacities. Similar programs are drawn up by security organs and law enforcement organs of the Russian Federation. In accordance with these programs, long-term contracts are concluded and the Defense Order is approved. The said long-term programs are also used in the compilation of state conversion programs and are communicated to the interested enterprises undergoing conversion for the purposes of planning conversion and organizing production. 2. On the basis of the Russian Federation republic budget, the details of the corresponding long-term programs are worked out, existing contracts are extended, and competitions are held for the fulfillment of new orders. Conversion is reckoned to begin in the year in which the production and development of arms and military equipment is actually reduced or ceased at the enterprises, or in which the redesignation of uncommissioned capacities begins Article 4. Conversion Programs 1 . The main role in organizing the switch from military to civil production and the drawing up of conversion programs belongs to the defense enterprise. The basis for drawing up the conversion program at the enterprise consists of a) Programs for the development and production of arms and military U.S. Department of Commerce July I1** RDBD 5 - St. Petersburg 9-3 equipment and programs for supporting the activity of security organs and law enforcement organs of the Russian Federation; b) Programs for the creation, preservation, and development of mobilization capacities; and c) The order for the development, production, and delivery of output and goods for important state needs (including Defense Needs). 2. The drawing up of state conversion programs and the organization of their execution are carried out by the Russian Federation Ministry of Industry. 3 . Regional conversion programs are drawn up by the organs of executive power of national-state and administrative-territorial formations, and also by conversion coordination councils or other organs promoting the processes of implementation of conversion in a region. 4. The participation of enterprises undergoing conversion in state and regional programs is strictly voluntary and based on the principles of economic interest and competitiveness. Article 5. Finance and Material and Technical Provision for the Conversion Process 1 . The procedure for finance and material and technical provision for the defense order is defined by means of a contract between the executor of the order and the client, concluded in accordance with Russian Federation legislation. 2. The procedure for finance and material and technical provision for work under state conversion programs is established in the said programs. 3. The material interest of the leader of a state enterprise undergoing conversion in improving the economic indicators (including that of maintaining the level of employment) is ensured by the terms of the contract concluded in accordance with Russian Federation legislation. 4. With a view to ensuring credit availability and the implementation of state conversion programs, a state conversion fund is set up. The sources and procedure for financing the said fund are determined by the Russian Federation Supreme Soviet in the course of approving the Russian Federation Republic budget. 5. Enterprises undergoing conversion are granted the right to form special centralized U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 9-4 funds for the financing of research, experimental, design, and planning work, and also for the assimilation of new types of output. The said funds are formed on the basis of contributions from profits up to a level of 1 .5 percent of the prime cost of the enterprises' commodity output (operations, services), such payments being deductible from the taxable base for the calculation of income tax (profit tax) Article 6. Aspects of Reorganization and Privatization of Enterprises Undergoing Conversion 1. In the case of the full conversion of enterprises which belong to an association and are not legal persons in their own right, or of shops, sections, or other structural subdivisions of enterprises, they may be designated as autonomous state enterprises with the rights of a legal person. The decision to designate a subdivision as an autonomous state enterprise is made on a vote at a general meeting of the subdivision's labor collective, by a majority of the total number of members of the collective. Designation as an autonomous state enterprise takes place in accordance with Russian Federation legislation. 2. The labor collective of a state enterprise undergoing full conversion may submit an application for the privatization of its enterprise, participate, through its representatives, in the formulation of the privatization plan, and enjoy, in the privatization process, the privileges granted by Russian Federation legislation to members of enterprises' labor collectives. 3. In the case of partial conversion, an enterprise or its structural subdivision is privatized in accordance with Russian Federation legislation and the state privatization program. 4. Participation by foreign investors in the privatization of enterprises undergoing conversion takes place in accordance with the state privatization program, the RSFSR law "On Foreign Investments in the RSFSR," and Russian Federation legislation on privatization. 5. Enterprises or structural subdivisions of enterprises whose purpose relates to mobilization and which are not used in current production are not subject to privatization. SECTION 3: SOCIAL PROTECTION. COMPENSATIONS AND CONCESSIONS FOR ENTERPRISES UNDERGOING CONVERSION Article 7. Social Protection for Workers at Enterprises Undergoing Conversion U.S. Department of Commerce Julv I1** RDBD 5 - St. Petersburg 9-5 1 . Citizens of the Russian Federation working at enterprises undergoing conversion and also those who are freed as a result of conversion are entitled to social protection in accordance with the present law and other legislative acts of the Russian Federation. 2. For workers at mining, metallurgical, radiochemical, and specialized assembly facilities in the uranium industry who are freed as result of conversion, the period for which an unemployment allowance is received may be extended by up to two years by decision of the local Soviet of People's Deputies. 3. Workers freed as a result of conversion who had worked in defense sectors of industry for at least 15 years are entitled to the use of sector social facilities and sector medical services and to retain their place in the waiting line for housing, and are also granted preferential rights to individual housing construction or membership of housing construction cooperatives in all regions of the Russian Federation. 4. Cities and settlements where more the 20 percent of the employed population is made redundant as a result of conversion may be granted the status of priority development territories under article 17 of the RSFSR law "On Employment of the Population in the RSFSR." 5. The dismissal of workers from an enterprise undergoing conversion as a result of conversion is an additional condition of dismissal to be compulsorily recorded in the worker's labor record as a reason for dismissal. 6. The requirements set forth in point 5 of the present article also apply to workers dismissed in accordance with Article 29 points 5 and 6 and Article 33 point 1 of the RSFSR labor law code. 7. All concessions stipulated for labor collective members by Russian Federation Legislation and the State Privatization Program are extended to unemployed workers dismissed from an enterprise undergoing conversion under points 5 and 6 of the present article in the course of privatization of state enterprises. Article 8. Compensations and Concessions for Enterprises Undergoing Conversion 1 . Tax concessions for enterprises implementing conversion are established in accordance with Russian Federation Taxation Legislation. 2. State enterprises undergoing conversion are entitled, with the permission of the Russian Federation Government, to the accelerated amortization of a proportion of U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 9-6 the fixed production capital, or — in the event of the complete removal of the defense order from them and the absence of the possibility of using the said capital in the civil sphere — to write off highly specialized equipment without amortization. 3. Where there is a reduction in the order for the production of arms and military equipment produced on specialized production lines, in specialized shops, or at numerically designated production units, and also in other cases leading objectively to an increase in the unit cost of the said output, on renewing the contract the client must, at the enterprise's request, revise prices for the output ordered on the basis of calculations submitted by the enterprise to ensure the production unit's profitability in the new conditions and to maintain the existing level of labor remuneration for workers at the said lines, shops, and production units. 4. In the event of failure to comply with the time scale stipulated in the present law for communicating to defense industry enterprises the starting data relating to conversion, the losses sustained by these enterprises, including: a) Expenditure on the mothballing and maintenance of mobilization capacities, social measures, and compensation for increased costs of output resulting from a reduction in the production of arms and military equipment; b) Sums paid in penalties imposed by suppliers or raw and semifinished materials and subassemblies; and c) Other losses relating to loss of earnings for groundwork done on uncompleted output and the need to write off tools, gear, instruments, and equipment that cannot be used for the production of civil output— are compensated for by the Russian Federation Government out of Russian Federation Republic budget resources, unless other provision is made in long-term contracts between enterprise and client. 5. Provision is made for enterprises undergoing conversion which produce, under conversion programs, equipment and machinery for the needs of the agro- industrial complex to receive compensation for a proportion of overhead, so as to ensure that price levels are no higher than world prices. SECTION 4. ENTERPRISES' FOREIGN ECONOMIC ACTIVITY IN CONDITIONS OF CONVERSION Article 9. Forms of Foreign Economic Activity U.S. Department of Commerce July l1** RDBD 5 - St. Petersburg 9-7 1 . Enterprises undergoing conversion are entitled to carry out foreign economic activity autonomously in accordance with Russian Federation Legislation. Enterprises are entitled to: a) Export raw and semifinished materials and equipment freed in the course of conversion — on condition that they cannot be used for the production of civil output and taking into account the requirements of article 10 of the present law; b) Import new equipment and technologies, as well as subassemblies, for the production of civil output; c) Transfer (exchange and sell), in accordance with the specified procedure, technologies, licenses, know-how, and scientific and technical information which, prior to the commencement of conversion, were used in the development of arms and military equipment; d) Participate in conferences, symposiums, exhibitions, and fairs involving the demonstration of new materials, equipment, instruments, and publicity materials describing technologies which were formerly used in the production of arms and military equipment; e) Develop, produce, and sell arms and military equipment under licenses according to the procedure stipulated by Russian Federation Legislation; and f) Participate in cooperation with foreign firms in the development, production, and sale of military output in accordance with Russian Federation legislative acts making provision for the protection of the Russian Federation's military-technical interests. 2. The activity of enterprises with foreign investments is regulated by the RSFSR law "On Foreign Investments in the RSFSR" and other Russian Federation legislative acts. Article 10. Protection of the Russian Federation's Military Economic and Scientific and Technical Potential 1 . To prevent damage to the Russian Federation's military economic and scientific and technical potential in the course of foreign economic activity by enterprises U.S. Department of Commerce My 1996 RDBD 5 - St. Petersburg 9-8 undergoing conversion, and also to ensure the nonproliferation of weapons of mass destruction, enterprises should be guided strictly by restrictions imposed on the export (transfer, exchange) of output and technologies that have a civil purpose but could be used in the creation of weapons of mass destruction Restrictions on the export (Transfer, exchange) of the said types of output and technologies are imposed by the Russian Federation Supreme Soviet and the Russian Federation Government. In their foreign economic activity enterprises undergoing conversion are guided by the following provisions: a) The export of strategic types of raw and semifinished materials and equipment takes place under licenses issued in each specific case in accordance with Russian Federation legislation; b) The transfer of technologies, licenses, know-how, and scientific and technical information for the organization of the production of civil output and (or) their use in commercial and scientific and technical links with foreign firms are conditional on ensuring the protection of the Russian Federation's military-economic interests; the sale to other states of arms and military equipment and specialized systems, complexes, functional units, and assemblies that are components of arms and military equipment and also technologies for their production takes place in accordance with the procedure specified by the Russian Federation Government. Russian Federation President B. Yeltsin Moscow, House of Soviets of Russia, March 20, 1992 No. 2551-1 SUMMARY OF THE RUSSIAN UKASE ON ACCELERATION OF PRIVATIZATION OF STATE AND MUNICIPAL ENTERPRISES Ukase No. 66, sighed by the President of the Russian Federation, Boris Yeltsin, and effective as of January 29, 1992, consists of seven appendixes dealing with regulations and methodologj pertaining to privatization of state and municipal enterprises. Listed below are appendix titles and summary of the articles as they appear in Ukase No. 66. The titles of the appendixes which do not contain articles are indicative of the subject matter they cover thus providing a brief summai) of each appendix. The Ukase applies to the Russian and foreign legal entities and citizens U.S. Department of Commerce July 1^^ RDBD 5 - St. Petersburg 9-9 Appendix No. 1 Temporary Regulations on the Procedure for Submitting, Filling Out, and Accepting for Consideration Applications for Privatization of State and Municipal Enterprises in the Russian Federation. Appendix No. 2 Temporary Methodological Guidelines for Assessing the Value of Objects of Privatization. The articles contained in this appendix pertain to the composition of appraised property of the enterprises, determination of the value of the enterprise's property, determination of the initial price of the enterprises and the amount of the charter capital of the joint-stock company, and documentation of the result of the appraisal of the enterprise's property. Appendix No. 3 Temporary Regulations on the Transformation of State and Municipal Enterprises Into Open Joint-Stock Companies. Appendix No. 4 Temporary Regulations on Privatization of State and Municipal Enterprises in the Russian Federation by Auction. The articles of Appendix No. 4 focus on the preparations for conducting an auction, conditions, for buyers' participation in auctions, procedure for conducting auctions, documentation of the right to own a privatized enterprise and accounts with participants in the auction, distribution of proceeds from the sale of objects of privatization at auction, and invalidity of privatization transactions and liability of parties. Appendix No. 5 Temporary Regulations on Privatization of State and Municipal Enterprises in the Russian Federation Through Competition. The articles in Appendix No. 5 are concerned with the preparation and organization of competitions, conditions for participation of buyer in the competition, procedure for consideration of offers for buyers, documentation of the rights to own privatized objects and accounts with participants in the competition, distribution of proceeds from the sale of the object through competition, and invalidity of privatization transactions and responsibility of the parties. Appendix No. 6 Temporary Regulations on the Procedure for the Use in 1992. During Privatization of Money From Economic Incentive Funds and Profit of State and Municipal Enterprises. Appendix No. 7 U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 9-10 Temporary Regulations on the Work of Privatization Commission Ukase No. 66 "On Acceleration of Privatization of State and Municipal Enterprises" was developed on the basis of the RSFSR law "On Privatization of State and Municipal Enterprises in RSFSR". Both of these laws are available in their entirety from the National Technical Information Service ("NTIS"). Contact NTIS at (703) 487-4650 and request order number PB92-9671 1 9-ACV for Ukase No. 66 and order number PB92-96147-ACV for the law "On Privatization of State and Municipal Enterprises". U.S. Department of Commerce Jul) 1**> RDBD 5 - St. Petersburg 9-11 CHAPTER 10 - RUSSIAN GOVERNMENT AUTHORITIES IN INVOLVED IN DEFENSE CONVERSION I. INTRODUCTION 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 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 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 charts on the following pages 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 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 b\ 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 U.S. Department of Commerce Julv H^ RDBD 5 - St. Petersburg 1 0_ i 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. U.S. Department of Commerce My 1 996 RDBD 5 - St. Petersburg 1 0-2 Players in Russian Defense Industry and Conversion Decisionmaking President Presidential Advisor tor Military-Technical Cooperation Boris Yeltsin Boris KuzyV 1 Premier Department of Defense Industries Viktor Chernomyrdin Chmn Vateriy Mtohaylov 1 1st Deputy Premier Deputy Premier Stale Committee on Military-Technical Policy, Chmn Vladimir Kadannikov Oleg Davydov Chmn Sergey Svechntkov || Deputy Premier Chmn. Alexandr Kazakov I 1 1 Minister of Defense Minister of Economics Minister of Foreign Affairs Minister of Finance Minister of Foreign Economic Relation: Yevgenniy Yasin Andrey Kozyrev Vladimir Panskov Oleg Davydov 1 1st Deputy Procurement, R&D & Conversion 1st Deputy Deputy 1st Deputy Andrey Koskoshin Yakov Urinson Georgiy Mamedov Andrey Vavilov I Deputy Chairman Committee on Mil-Tech Policy Chief, Defense Industry & Conversion Division Department For Export Control & Conversion Viktor Mironov Vladimir Salo Dep. Nikolay Maksimov Sergey Kortunov 1 Director Defense Conversion Dent Gennadiy Kuzin Director, Inter- departmental Analytical Center State Committee for Defense Sectors of Industry Aleksey Ponamarev Dep., Sergey Kolpakov Chairman, Zinoviy Pak Yuri Glybin, A Korzh, N. Mokina Aleksey Shulunov President, League of Defense Industries U.S. Department of Commerce RDBD 5 - St Petersburg 10-3 Jul\ I** CHAPTER 11 - REGIONAL AND OTHER USEFUL INFORMATION How to Advertise in Russia For BISNIS Assistance Call: (202) 482-4655 or Fax: (202)482-2293 Internet: [email protected] Room H-7413 U.S. Department of Commerce 14th Street and Constitution Ave., N.W. Washington, DC 20230 JOURNALS AND OTHER PUBLICATIONS Delovie Lyudi A journal on business in the former Soviet Union. Printed in both English and Russian, its international distribution includes all of the republics of the former Soviet Union. As of 1991 , it had a circulation of over 85,000 in Russia, of which 43 percent was in Moscow and St. Petersburg. Its total circulation in the newly independent states is up to 120,000. Delovie Lyudi also publishes a special energy supplement, which is sent to 15,000 managers operating in the energy sector of the former Soviet Union. Contact: Laeticia Roderer Tel.: (212) 629-4460 Delovie Lvudi 330 West 42nd Street Suite 2600 New York, NY 10036 Mark Talieh Tel.: (714)675-2464 2865 East Coast Highway, Suite 308 Fax: (714)675-0180 Corona del Mar, CA 92625 The New York Times: News in Review (Russian Language Edition) This newspaper has a circulation of 120,000. Its target audience includes government and political leaders in the former Soviet Union, the business community, the press, and the diplomatic and academic communities in Russia and other states of the former USSR. Its principal markets are Moscow, St. Petersburg, Kiev (Ukraine), Minsk (Belarus), Alma-Ata (Kazakhstan), and other major cities of the foreign Soviet Union. Contact: Martine Singer, Publisher Tel.: (212)556-1360 or Ann M. Blinkhorn, Business Development Manager 229 West 43d Street New York, NY 10036 Tel.: (212) 556-1721 U.S. Department of Commerce Julv W^ RDBD 5 - St. Petersburg 11-1 Financial Times This Russian-language publication is the result of a joint business agreement between The Financial Times (Europe's business newspaper) and Izvestia (a leading Russian newspaper). A weekly 8-page newspaper that accompanies the Russian newspaper, Izvestia, it features Russian and international business and economic news and is circulated in and around Moscow. The paper's Moscow circulation is 300,000, with an additional 4,000 copies being sent to leading industrial and government figures throughout the newly independent states. Contact: Mary-Ellen Houck Vice President, Advertising Financial Times 14 East 60th Street New York, NY 10022 Tel.: (212)752-4500 We/M This newspaper, which has editorial headquarters in Washington, DC and Moscow, publishes separate but similar English and Russian language editions that are distributed simultaneously in the United States and Russia. The major markets of the Russian edition are Moscow, St. Petersburg, and Kiev (Ukraine). The paper has a circulation of up to 300,000 in Russia and the other independent states and up to 50,000 in the United States. Contact: Maxwell McCrohon, Editor Tel.: (202)467-6931 Izvestia/Hearst Fax: (202)467-6941 1350 Connecticut Ave., NW Suite 1020 Washington, DC 20036 Vostok Rosii An avenue for advertising in the Russian Far East. The publication is available in original Russian language form throughout the region. Its monthly, English-translated version is marketed by Image Marketing of Alaska. Largest circulation in Asian Russia. Focuses on business, social and economic trends to the North American audience. Contact: Larry Rivers, President Image Marketing Box 507, Talkeetna, AK 99676 Tel.: (907)733-2573 Fax: (907) 733-2471 (Newspapers Magazines) This Russian publication, which lists newspapers and magazines published in Russia and the other newly independent states, is designed for use by Russian subscribers. The U.S. exporter who is willing to do some detective work, however, could use this publication to identify trade journals in various industrial sectors. The exporter would then have to do some research to find phone numbers and addresses of those journals in order to request information from them on the U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 1 1 -2 possibility of advertising. Contact: Marketing service Tel: +7-095-195-0351 +7-095-195-6606 The Russian Yellow Pages A Russian-language publication that presents the American way of life as well as thousands of names and addresses for the Russian reader. There is a US edition with a circulation of up to 20,000 and a Russian edition with a circulation of up to 600,000. Businesses can also contact this company to advertise on local television programs in Moscow; with audiences of about 30 million. Also has con Contact: Context Publishing House, Inc. 475 Fifth Ave., Suite 511 New York, NY 10017-6220 Tel.: (212)213-2126 Tel.: (212)679-4620 Fax: (212) 447-7558 ADVERTISING ORGANIZATIONS Joint Stock Company Soyuzreklama A full-service advertising organization. It offers advertising services ranging from printed advertising in booklets, leaflets, and posters to television commercials. It also offers a wide range of outdoor advertising including electronic panels, and billboards at sport sites and on municipal transport. Contact: Soyuzreklama 103688, Russia, Moscow, Centre, GSP 2, Varvarka Street, 14 Tel.: +7-095-298-5255 +7-095-298-5255 +7-095-298-4670 +7-095-298-4552 Fax: +7-095-298-3605 +7-095-298-3287 or: Russian Resources, Inc. (Partner and representative of Soyuzreklama) Eleonora A. Markish, President 6517 Orono Court Springfield, V A 22152 Tel.: (703)569-6907 • Fax.: (703)569-2679 Young and Rubicam-Sovero Mike Adams 1404 Sovincentr 1 2 Krasnopresnenskaya NAB Moscow 12610 RUSSIA U.S. Department of Commerce RDBD 5 - St. Petersburg 11-3 Jul\ N*> Tel: +7 095 7 253 2185 Fax +7 095 7 253 1348 BBDO Marketing Bruce MacDonald Staromonetny Pereulok 3 1 Moscow 109017 RUSSIA Tel: +7 095 231 3906 or 3611 Fax: +7 095 238 3088 International Media Representatives, Inc. This company produces a variety of publications targeting industrial sectors including aerospace/defense, food processing, medical/health, and water /environment. One example is its Food Industry Buyers Guide in Russian. Contact: Mr. Martin Masiuk, President International Media Representative, Inc. 401 Headquarters Drive, Suite 208 Millersville, MD 21146 Tel: (410) 987-2075 Fax: (410) 987-6437 RADIO Open Radio This all news, all the time radio station is based in Moscow and has a 20-hour broadcast day. Its 75 kilowatt transmitter is the strongest AM radio signal in Moscow. The station re-broadcasts foreign programs such as Voice of America, BBC, and Radio Liberty as well as broadcasting its own western-style new programs. The station has been in operation since March 1992 and has a potential market of 30 million; its primary listeners are the rising intellectual and entrepreneurial classes of Russia as well as Western business people. The station hopes to eventually expand its network Russia- wide. Contact: Nurlan Urazbayev, General Manager Russia, Moscow Ul. Pyatnitskaya, 25 Tel: +7-095-233-6587/7224/7640 Fax: +7-095-233-6973 Telex: 411137 TELEVISION Chief Broadcasting Center of Russia This broadcasting center is responsible for the transmission of seven television channels to an U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 11-4 audience of 15 million people in and around Moscow. It handles the transmission of nine radio channels to the same audience and maintains the cable television network that serves 1 .7 million subscribers in Moscow. Contact: Vyacheslav N. Misyulin 127427, Russia, Moscow Ul. Akad. Koroleva, 15 Tel: +7-095-283-4890 Fax: +7-095-288-9591 Telex: 412236 OSTVT Sakhalin Regional Broadcasting and Radio Television Center Contact: Sergei P. Prokhorenko 693016, Russia, Yuzhno Sakhalinsk Ul. Komsomolskaya, 213A Tel: +7-45400-3-8929 Fax: +7-42400-2-3001 NOTE: Developments are changing rapidly in the NIS. U.S. Department of Commerce Juh 1^^ RDBD 5 - St. Petersburg 1 1 -5 CHAPTER 12 - MARKET RESEARCH AND TRANSPORTATION SERVICES MARKET RESEARCH COMPANIES U.S. FOREIGN COMMERCIAL SERVICE (American Embassy Commercial Section) Novinsky BuPvar, 15 Moscow 121099 Russia Telephone: 255-4848, 255-4660 252-2451/59 x. 5011,5091 Telefax: 230-2101 Satellite Phone (from Europe or U.S.): 7-502-224-1 105 Satellite Fax: (from Europe or U.S.): 7-502-224-1106 Commercial Counselor John Peters Commercial Attache Eric Weaver Commercial Officer Rich Steffens Secretary to the Commercial Counselor Cathy Criley Business Facilitation Mary Beach BISNIS representative Irina Zamarina Commercial Assistant Alia Karaseva (consumer goods /licensing/hospitality) Commercial Assistant Yuri Malkov (telecommunications & ground transportations Commercial Assistant Mila Maksimova (financial sevices/textiles/electronics) Commercial Assistant Vladimir Maximov (environment and services) Commercial Assistant Nikolai Mikhailov (minerals/oil &gas eqpt./ construct, eqpt.) Commercial Assistant Victor Polishuk (ships, aircra ft/he avy industry) Commercial Assistant Marina Parshukova (medical equipment & computers) Commercial Assistant Olga Varfolomeeva Commercial Clerk Natalya Zhukova Commercial Operations Sasha Soskin (agriculture & wood processing) SABIT Coordinator Susan Fischer The following list was compiled by the Commercial Section of the American Embassy. We would appreciate the learning of any additions or corrections which should be made to this list. MARKET RESEARCH COMPANIES ACCORD CONSULTING GROUP U.S. Department of Commerce Julv W^ RDBD 5 - St. Petersburg 1 2- 1 444 Castro Street, Suite 400 Mountain View, CA 94041 Tel: (415)940-1896 Fax: (415) 969-8660 AMTRADE ASSOCIATES 420 Lexington Avenue, Suites 1624-27 New York, NY 10170 Tel: (212)697-2467 Fax: (212)599-0839 ASET CONSULTANTS. INC. 8530 Greensboro Drive, Suite 805 McLean, VA 22102 Tel: (703) 790-1922 Fax: (703)883-1305 DCSS INTERNATIONAL P.O. Box 4773 Spartansburg, SC 29305 Tel: (803)582-8681 Fax: (803)582-8683 D.R.I P.O. Box 15 115573 Moscow Tel: 396-0853 Fax: 292-6511 258 Harvard Street, Suite 246 Brookline, MA 02146 Tel: (617)783-9181 Fax: (617)783-9181 DUN & BRADSTREET RUSSIA Bumazhni Proezd 14 101462 Moscow Tel: 250-2025 Fax: 250-4898 EAST CONSULT LTD. Russian Academy of Sciences 12 Rozhdestvenka Stre. 103753 Moscow Tel: 924-1233 Fax: 925-8523 U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 12-2 FYI- INFORMATION FOR A CHANGING WORLD 735 8th Street, SE Washington, DC 20003 Tel: (202)522-2394 Fax: (202)543-9835 INFORCOM 8 Merzliakovski Street 121614 Moscow Tel: 925-6644 Fax: 925-2679 KOEPPEN. ELLIOTT & ASSOCIATES. LTD. 1825 I Street, NW, Suite 400 Washington, DC 20006 Tel: (202)429-5245 Fax: (202)429-9574 MANAKEY GLOBAL. INC. 32-9 Parusny Proezd 123364 Moscow Tel: 193-1804,908-8673 Fax: 908-8673 MANAGEMENT INTERNATIONAL Zholtovskoi 1 8 A, Suite 6 Moscow Tel: 209-0154 1419 Oak Grove, Suite 301 Burlingame, CA 94010 Tel: (415) 375-0944 MB CONSULTING B. Serpukhovskaya 44, Rooms 37, 39, 41 113093 Moscow Tel: 236-4734 Fax: 200-3937 "For MS Consulting" MINSTRY OF FOREIGN ECONOMIC RELATIONS NATIONAL MARKET RESEARCH INSTITUTE (VNIKD 4 Pudovkin Street 119285 Moscow Tel: 143-8664, 147-4366 Fax: 143-0271 NOVOSTI-INKOM U.S. Department of Commerce July l0^ RDBD 5 - St. Petersburg 1 2-3 4 Zubovsky BuTva, Room 5010 103786 Moscow Tel: 201-7193,201-8433 Fax: 230-2170,230-2667 RCMI Research, Consultation, Managment, International 15 Chekhov Street 103006 Moscow Tel: 195-2853 Fax: 195-2853 190000 MacArthur Blvd., Suite 400 Irvine, CA 92715 Tel: (714)476-7850 Fax: (714)540-7108 RUS IMPLANT 1 Tverskoi-Yamskoi Per. 18/3, Office 326 125834 Moscow Tel: 251-55369,251-1798,956-1525 Fax: 251-5447 RUSSIAN MARKET RESEARCH CENTER 2112 New Hampshire Avenue, NUW, Suite 817 Washington, DC 20009 Tel: (202)462-0954 Fax: (202)462-0960 WPW INTERNATIONAL 1480-F Terrell Mill Road, Suite 816 Marietta, GA 30067 Tel: (404)953-2300 Fax: (404)953-0783 RUSSIAN TRANSPORT SERVICES BONDED WAREHOUSES EVRODONAT TERMINALS ul. Jakornaja 17 St. Petersburg, 195027 Fax: +7-812-227-1191 Contact: Konstantin V. Fusin, General Director U. S. Department of Commerce My 1 996 RDBD 5 - St. Petersburg 1 2-4 SOFI Volkhonskoje Sh. Ill St. Petersburg Fax: +7-812-155-3343 Contact: Leonid M. Kanevsky, Director A/O PETERSBURG- VNESHTRANS LTD. Mezhevoj kan. St. Petersburg Fax: +7-812-186-2883 Contact: Jaov L. Romanenko, Vice President COMMERCIAL PORT OF KALININGRAD Fax: +7-0112-44-6318 Contact: Valerij M. Tarasov, Commercial Director AEROSHER-EXPRESS GOSNII GA, Sheremetyevo-1 Moscow 103340 phone: +7-095-578-4754, 578-6367 Fax: +7-095-578-4651 Contact: Vladimir Alexandrovich Smirnov, General Director Yuri Mikhailovich Baranovskiy, Commercial Director EURONET ill. 2 Skotoprogonnaya 35/3 Moscow 109029 phone: +7-095-278-8521, 278-0029 Fax: +7-095-278-0029 Contact: Victor Konstantinovich Yaroshevich, Director INTERTAMSERVICE Kashirskiy Pr. 17 Moscow Phone: +7-095-113-2209 MOLCOM ul. Kostomarovskaya 5 Klyazma, Pushkino District, Moscow region phone: +7-095-227-8535, 581-3355, 297-3434 Fax: +7-095-200-3279 Telex: 414731 MLCSU Contact: Mikhail Yefimiovich Malkov, General Director MOSTERM1NAL-SERVICE ul. Krasnobogatyrskaya 79 U.S. Department of Commerce July l°°o RDBD 5 - St. Petersburg 1 2-5 Moscow 107258 phone: +7-095-963-9089 Fax: +7-095-162-1675 Contact: Alexander Alexandrovich Galkin, General Director ORBITA-LIMOUSINE SERVICE 43a, ill. Ryabinovaya Moscow 121471 phone: +7-095-310-3183 Fax: +7-095-310-7089 Contact: Alexander Alexandrovich Galkin, General director SOVINDEP Balaklavskiy Pr. 28 (ul. Bolotnikovskay 42/1) Moscow phone: +7-095-318-0018,121-3498 fax: +7-095-121-2551 Contact: Victor Mikhailovich Tyultin, President SOVTRANSAVTO-EXPEDITSIYA 26 km, Varshavskoye Shaussee Moscow 113623 phone: +7-095-548-7675, 548-7498 Fax: +7-095-548-7161 Telex: 41130UTEPSU Contact: Igor Vasilyevich Dzhegriy, Director RAIL SERVICE RUSSIAN STATE RAILWAYS Far Eastern District ul. Muravyeva/Amurskovo 20 Khabarovsk 680000 Khabarovski Krai phone: 27-22-63 Contact: A. P. Ivanov RUSSIAN STATE RAILWAYS Baikal- Amur District ul. Krasnaya Presnya 10 Amur Oblast* Tynda 676880 phone: 9-44-00 Contact: A.O. Bogdanovich RUSSIAN STATE RAILWAYS U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 1 2-6 Sakhalin District Kommunisticheski pr. 78 693000 Yuzhno-Sakhalinsk Sakhalin Oblast* phone: 44-00 RUSSIAN FAR EASTERN SERVICE RUSSIAN FEDERATION MINISTRY OF TRANSPORT Maritime Department ul. Rozhdestvneka 4 Moscow phone: +7-095-926-1348 PORT OF NAKHODKA ul. Portovaya 22 Primorski Krai Nakhodka 692900 phone: 4-79-68,4-13-86 Fax: 4-79-86,4-18-06 tlx: 213824 PIRS SU Contact: Gelii Nikolaevich Myasnikov, General Director PORT OF KHOLMSK ul. Sov'etskaya41 Sakhalin Oblast Kholmsk 694620 phone: 2-23-61 tlx: 213214 SFERASU Contact: V. Gapon, General Director PORT OF KORSAKOV per. Reidovi 2 Sakhalin Oblast Korsakov 694000 phone: 2-32-34 Contact: Lyubomir Nikolaevich Stooyanov, General Director PORTOF MAGADA Magadan Oblast 685004 Magadan Phone: 41300-3-50-12 tlx: 145131 PORT SU Contact: Yurii Alcksccvich Mishkov, Director PORT OF PETROPAVLOVSK-KAMCHATSKI ul. Radiosvyazi 26 U.S. Department of Commerce Juh W^ RDBD 5 - St. Petersburg 1 2-7 Kamchatka Oblast Petropavlovsk-Kamchatski 683000 phone: 2-19-03 Contact: Rafac Batykovic Bashkirov, General Director PORT OF POS* YOT ul. Portovaya 47 Pfimorski Krai Pos'yot 692761 phone: 2-13-21 General Director: V. Raspopin PORT OF VANINO ul. Zheleznodorogaya 1 Khabarovski Krai 682860 Vanino phone: 42137-5-75-05,5-13-23 fax: 42137-5-14-82 telex: 141156PIRSSU Contact: Apollon Mikhailovich Shangeliya, General Director PORT OF VLADIVOSTOK ul. Strelnikova 9 Primorski Krai, Vladivostok 690600 phone: 4232-22-23-64 telex: 213855 PORT SU Contact: Mikhail Fedorovich Robkanov, General Director PORT OF VOSTOCHN1 Primorski Krai Wrangel 692907 phone 5-23-71 tlx: 2123821 SVTV SU Contact: Boris Matveevich Kolovejchik, Manager PORT OF TIKSI ul. Morskaya 1 Republic of Sakha (Yakutia) Tiksi 678400 phone: 41167-2-10-45 Contact: Gennadii Georgievich Drugov, Director PACIFIC BASED AIR AND SEA CARGO SERVICES REEVE U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 12-8 Anchorage, AK phone: 907-243-4700 Contact: Keith Campbell, Vice President Flight Operations BERING AIR Nome, AK phone: 907-478-5620 Contact: Theresa Horvath, Russian Booking Agent LYNDEN TRANSPORT Anchorage, AK phone: 907-243-6150 Contact: RickPolluck BAKER AVIATION Fairbanks, AK phone: 907-442-3700 Contact: Marcy Baker ALASKA CARGO TRANSPORT Seattle, WA phone: 206-762-5955 fax: 206-762-5955 Contact: Rusty Devereaux PENINSULA AIR Anchorage, AK phone: 907-243-2485 Contact: Dick Harding, Director of Operations NORTHERN AIR CARGO Anchorage, AK phone: 907-243-3545 Contact: Mary Shoulton ALASKA AIRLINES Seattle, WA phone: 206-431-7195 Contact: Ron Peck AEROFLOT phone: 907-248-8400 Contact: Roger Kegley or Airline Management Company phone: 907-272-9299 MARK AIR U.S. Department of Commerce Jul\ loo^, RDBD 5 - St. Petersburg 1 2-9 phone: 907-266-3609 Contact: Craig Johnson FAR EASTERN SHIPPING COMPANY, INC. (Darnevostochnoye morskkoye parochodstvo, AO) ul. Aleytskaya 15 (formerly ul. 25 Oktyabrya) 690019 Vladivostok Primorski Krai phone: 4232-22-24-32 fax: 4232-22-46-36 telex: 215113 ABC Contact: Viktor Mikhailovich Mis 'kov, Director COASTAL SHIPPING COMPANY, INC. (Primorskoye morskoye parochodstvo, AO) ul. Pogranichnaya 6 692900 Nakhodka Primorski Krai phone: 42366-5-60-90 fax: (42366) 5-60-78 tlx: (42366) PSHP SU Contact: Aleksandr Dimitrievich Kirilichev, General Director SEALAND SERVICE INTERNATIONAL, TD. Vostochni-Port Wrangel-1 692900 satellite phone/fax: 7-504-9 15-22 10 local phone: 52-43-7, 52-09-4 AMERICAN PRESIDENT LINES 3443 West Marginal Way, S.W. Seattle, WA 98106 phone: 206-933-4646 fax: 206-933-4612 Contact: John Edgar, Senior Account Executive: SILVER WIND CORPORATION (Agents for American President Lines) ul. Menzhinskovo 63 Vladivostok 690600 phone: 26-74-39 fax: 22-23-64 Contact: Vladimir T. Zhenikhalov, President SUNMAR SHIPPING, INC. 2615 Fourth Ave. U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg 12-10 Seattle, WA 98121 phone: 206-443-0200 Fax: 206-443-0207 telex: 7403301 SPS UC Contact: Stephen A. Hansen MERIT STEAMSHIP AGENCY, INC. (Agents for Navix) 1111 Third Avenue, Suite 2140 Seattle, WA 98101 phone: 206-682-2671 fax: 206-682-6023 telex: 185119 Contact: Michael Smith PORT OF ANCHORAGE phone: 907-272-1531 Contact: Bill Blessington Port of Anchorage INSURANCE COMPANIES/SECURITY FIRMS Corporate Risk International 1 1250 Waples Mill Rd. Fairfax, VA 22031 Phone: 703-359-3901 Sean M. McWeeney, President The company operates a Professional Indemnity Agency for Lloyds of London. This company can provide an assesment of the financial background of proposed overseas partners, prepare travel risk reports, conduct negotiations in difficult situations and provide overseas bodyguards. The company has over 100 agents stationed overseas. Johnson & Higgins New York Provides start-up companies in Russia with property, liability, motor and expatriate personal contents coverage. A new product called "RUSPAC" is underwritten by Russian American Insurance Co., a joint venture insurance company with Stolichny Bank of Moscow. American International Group Inc. , and Rossiya insurance Company of Russia. The company also offers a cargo insurance program known as "RUSFLEX". U.S. Department of Commerce July l°°o RDRD 5 - St. Petersburg 12-11 The Parvus Group 8403 Colesville Road, Suite 610 Silver Spring, MD 20910 Eric Bassett, Manager Business Development Phone: 301-589-4949 Fax: 301-589-0007 Parvus operates in 14 cities in Central Eurasia in a joint- venture known as ZAO PARVUS- DHERIKO. U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 12-12 CHAPTER 13 - THE COMMERCIAL AND RESIDENTIAL REAL ESTATE MARKET IN ST. PETERSBURG I. INTRODUCTION One of the primary concerns of Americans considering doing business in St. Petersburg is the availability and process of acquiring property for office space, housing and commercial development. The real estate industry in St. Petersburg is an immature one, riddled with problems such as a lack of zoning laws, unstable regulations and laws pertaining to ownership and leasehold rights, and the arbitrary appraisal of property. Although the present national constitution does not allow for the direct purchase of land, it is possible for Westerners to acquire quasi-enforceable property rights in St. Petersburg The purpose of this report is to identify these difficulties, but also provide an overview of several current methods of acquiring property, including lease or purchase of privatized property, conversion of communal flats, and the lease or purchase of municipal property. In light of the constant changes taking place in the real estate market, the statistics and pricing information set forth below may also change dramatically. II. PRESENT AVAILABILITY OF RESIDENTIAL PROPERTY A. Western Style Housing Western style housing is in high demand and short supply in St. Petersburg. Single family homes are non-existent in the city and Western style apartments available for immediate occupancy are scarce. Western style apartments are those which have undergone significant renovation. Usually, they include a remodeled kitchen and bathroom, modern appliances, and contemporary decor. In addition, the apartments may include a washer and dryer, water heater, space heater, and water filtration system. A Western style apartment located in the historic center of the city with three to five rooms, rents for $800-$ 1500 per month. Competition is great for these few high quality apartments, and vacated units are soon rented. Several firms plan to construct or renovate Western standard apartment complexes, but few are presently completed. B. Russian Privatized Apartments An alternative to leasing Westernized housing is to rent Russian privatized apartments. Unfortunately, renting a Russian apartment "as is" will subject the renter to conditions that would not be tolerated by most Americans. The heat and water are centrally controlled by the city, with little regard to the comfort of the populace. The hot water is turned off by city authorities for 2-6 weeks in the summer while the 'pipes arc cleaned' and in the winter, the city's distribution of heat does not always correspond to the need. Thus, the purchase of a water heater and space heater are recommended In addition, the water supply in St. Petersburg is contaminated by thsgiardia lambtia U.S. Department oi' Commerce .hilv |OOf, RDBD 5 - St Petersburg- 13-1 bacteria. As drinking tap water can cause sickness, a water purification system is a must. When considering renting an apartment "as is" prospective renters must also consider the cost of remodeling. Most apartments built in the past decades were poorly constructed and have suffered from neglect, and may be in need of significant repair. Completing these renovations is a challenge because most building materials must be imported and finding workers skilled in constructing to Western standards in Russia is difficult. Although Russian-style apartments have significant drawbacks, they are plentiful in St. Petersburg. Thousands of apartments in various physical condition are available throughout the city. They rent for as little as $50 per month in the outskirts of the city and $150 in the city center. These apartments are advertised in newspapers or may be rented through one of the Russian or American real estate agencies in the city. Also, new apartment buildings are being constructed by private Russian developers. Prospective renters must weigh the advantages of Western amenities versus the bargain prices of Russian apartments. Before a Russian apartment may be legally rented, it must be privatized and registered with the city officials. Residents of state-owned apartments have the right only to live in them, not to sell or lease them. Thus, the rental of a non-privatized apartment constitutes an illegal sublease, and may result in the removal of the tenant by city authorities regardless of the lease or rental documentation. Some people choose to take this risk and rent non-privatized apartments, but they should be aware that they have no legal recourse if they are removed from the apartment. It is essential to verify privatization documents for ownership prior to renting a Russian apartment Privatized Russian apartments may also be purchased. The average cost of a one room apartment in the outer regions of the city is $10,000-$14,000, a two room apartment averages $16,000-$22,000, and a three room apartment costs between $22,000-$30,000. Prices for apartments in the center of the city are at least double these figures. The price of an apartment depends considerably on the location and the physical condition of the apartment. The most desirable apartments to purchase are cooperative apartments. Cooperatives are apartment buildings constructed by a group of individuals or an enterprise through private investment. They are owned by the entity that built them and not by the state. Often, they are maintained better than their state-owned counterparts. Unfortunately, cooperatives constitute a very small percentage of available apartments. C. General Housing Concerns When considering both Russian and Westernized apartments, safety features are a primary factor. As economic conditions worsen for Russians, with inflation at 2000% in 1992 and the average Russian monthly salary the equivalent of $30, crime against U.S. Department of Commerce July 1996 RDBD 5 - St Petersburg 1 3 -2 Westerners is growing at a disturbing rate. Although the incidence of violent crime is much lower in St. Petersburg than in large American cities, foreigners are prime targets for crimes such as theft. In an apartment, a steel door is a necessity and an alarm system is highly recommended. One should also consider an apartment building with a security guard. Another concern is security of Western automobiles, which are attractive targets for vandalism and theft. Some apartment buildings have guarded parking lots , but this is the exception and not the rule. Garage space is virtually non-existent in the city, therefore parking is almost entirely limited to the street or in courtyards. It is possible to arrange parking at one of the few Western hotels, but this may be an expensive and inconvenient solution. III. PRESENT AVAILABILITY OF OFFICE SPACE AND COMMERCIAL PROPERTY As in the housing market, minimal Western style office space is available for immediate use. Several modest development projects are presently underway to fill this need. The price of office space varies greatly, from $250-800 per square meter per year, depending on location. Naturally, offices of Nevsky Prospect in the center of the city are the most expensive and in greatest demand. Inexpensive Russian style office space is available outside the center of the city. While the rent is much lower at only $50-$200 per square meter per year, one must consider the cost of renovation, security and the establishment of a reliable telecommunications system. To help meet the existing need for office space, one real estate developer is building interim office units, using modular, prefabricated units imported from Sweden. Several firms are in the process of renovating privatized Russian apartment buildings or constructing new office buildings, discussed below. Unable to find suitable offices, some Western firms are forced to use hotel rooms as offices, with rates starting at $180 per night. When evaluating office space, there are several important considerations. First, as with housing, security is a primary concern. Office buildings should have twenty-four hour security in the building and a watch person in the parking lot. Western offices containing computers, phones, fax machine, and other office equipment are naturally prime targets for theft. Another factor to consider is the quality of telecommunications Because of the low quality of the St. Petersburg phone system, an international satellite phone line is essential. When considering opening an office in St. Petersburg, regardless of the method you engage as described below, it is not uncommon for the process to take six to twelve months from the time you locate an office until the time it is suitable for occupation. U.S. Department of Commerce Jul\ W**> RDBD 5 - St Petersburg 1 3 - 3 IV. PRIVATIZATION OF MUNICIPAL PROPERTY Until recently, almost all land and property was owned and controlled by the city. The process in underway to convert municipal property to private ownership. Nearly 25% of St. Petersburg property is currently privately owned, a significant increase from only 2% in mid- 1991. In 1992, 56,000 flats were privatized in St. Petersburg, and in the period from January-March 1993, nearly 49,500 flats were privatized. The average size of a privatized flat is 52. 1 square meters. The majority of privatized flats are in the central Nevsky district. Some property experts estimate that 15% of privatized property throughout the historic center has been acquired by foreign business persons. V. CONVERSION OF COMMUNAL FLATS FOR RESIDENTIAL AND COMMERCIAL USE A. General Considerations Given the shortage of Western style housing and offices in St. Petersburg, it is often necessary for foreigners to create their own space, by purchasing a privatized communal apartment and renovating it to suit their needs. Most of the apartments in the historic center of St. Petersburg are communal flats. These are apartments in which between three and ten families have discrete living quarters, but share a kitchen and bathroom. The process of privatizing, purchasing, and renovating a communal flat is time consuming, often taking between three and five months to complete. However , both American and Russian real estate agents acknowledge that this method is the safest and most legal means of obtaining property. One agent estimated that 90% of office space and virtually all residential space is procured by this method. Because of the complexity of the process it is recommended that one work with a real estate firm with experience in this process. Real estate agencies either arrange for the privatization of communal flats and then find clients to purchase the space, or allow the clients to choose the desired site and then identify possible apartments for conversion. When a client chooses a particular location, the real estate agent approaches communal tenants in the area, and inquires of their interest in privatizing their apartments, selling, and relocating. The real estate firm finds new apartments for the communal tenants and arranges their relocation. The tenants legally privatize their apartments, a process which usually takes one month to complete. In many cases the Western client pays for the bureaucratic costs of privatization. When the tenants have privatization documents, they are in the legal position to sell their property, at which time the Western client can purchase the property and take title. B. Ownership and Leasehold Rights and Obligations Through the above method, a Western client may purchase a flat, floor of a U.S. Department of Commerce July 1 996 RDBD 5 - St Petersburg 1 3 -4 building, or all of the flats within a building. However, the purchase of the property does not constitute the purchase of the land under the building. Instead, the buyer signs a lease on the land. Typically, purchase of part of a building includes the signing of a 1 5 year lease, while purchase of all the flats in a building includes a 49 year lease. This guideline does not always hold true, and some real estate agents claim that the length of the lease is rather arbitrarily determined. Regardless of the length of the lease, most leases are extendable. If all the flats in a building are purchased by a single investor, the lease may include a right to purchase the land in the future. Although a legal procedure for such a purchase presently does not exist, it is the hope that within the term of the lease, a procedure will be devised. Potential buyers are taking a risk, however, because the future price of the land is unpredictable. Potential purchasers can only assume that if the price for the land is prohibitively high, they can simply extend their lease. Currently, the buyer of all of part of a building pays rent on the land in the form of a real estate tax. The present annual rate is 3% of the cost of the property as it is stated on the purchase contract in rubles. If this amount is less than the monthly Russian minimum wage (approximately 7000 rubles in mid- 1993) the owner pays the among of the minimum wage. Although the real estate tax rate is the same for both Russian and foreign owners, the rate is 3% if the property is owned by an individual and 6% if owned by a firm. In addition to the real estate tax, the owner must pay the city for gas, electric, sewage and water Each flat is metered and billed separately. Even if an investor purchases more than one communal flat in a building, the taxes and municipal services are billed for each flat individually. Currently, municipal services are heavily subsidized and the charges are artificially low. There is no way to predict future increases as more properties are privatized and fall into the hands of Western investors. In addition, property taxes are presently unrealistically low, with the revenue scarcely compensating for collection costs. The tax is based on an antiquated valuation system, rather than market value. With the fast paced changes in the real estate market, it is unpredictable when the city will change its taxation system and tap into this source of revenue. The privatization and sale of a communal apartment does not include the stairways, entryway, and other communal areas. This fact poses legal and practical problems. Many Western developers are reluctant to invest in the purchase and renovation of a building without having legal title to the common areas of the building On a practical level, the responsibility for the maintenance of the common areas is unclear The city legislature is developing a condominium law to help alleviate these problems, but until a law is enacted, Western owners must devise their own solution to the problem of common areas. In many case, if the entire building is occupied by foreigners, they will make an agreement to share in the maintenance of these areas, similar to a condominium association. If a resident is the only Westerner in a building, she may find herself maintaining these areas by default. U.S. Department of Commerce Juh W^ RDBD 5 - St Petersburg 13-5 C. Other considerations The architectural records of a building should be reviewed before considering the purchase of a flat or a building. The city has a registry of all historic buildings, including information such as bomb damage during the war and the history of capital renovations. If the building is deemed to be of historic, artistic, scientific or other value privatization must be agreed upon by the State Department for the Preservation of Historic Buildings. An integral part of the privatization contract is a preservation commitment made by the owner regarding the use of the building. There are no zoning laws which prohibit the use of privatized communal flats for commercial purposes such as an office, art gallery, or store. A license is required, however to convert the flat into a business that will serve food or alcohol. In general, privatization and purchase of communal flats is a safe and legal method of obtaining property. The conversion takes three to five months to complete, but it is usually a relatively smooth procedure. The primary challenge in this process is dealing with the individuals in the communal apartments. While most people are eager to relocate to other parts of the city in order to acquire a single-family apartment, it can be difficult to deal with the unique concerns of each family. If 9 of 1 0 families agree to privatize their apartments, and the last tenant changes his mind, the entire apartment can not be privatized. It can take significant maneuvering to find new apartments for the tenants and coordinate their relocation. One European firm solved this problem by constructing an apartment building in an outer region of the city and relocating the communal tenants there. Remodeling the flat is also time consuming. Depending on the physical condition of the flat and the desired specifications of the new owner, renovations can take several months. VI. ACQUISITION OF MUNICIPAL PROPERTY A. Lease of Municipal Property Most property in St. Petersburg that has not been privatized is municipally-owned. Foreign firms and individuals can lease this municipal property. The leases are granted either by direct contract or through a competitive bidding process. Auctions and concourses are the methods of competitive bidding for commercial property. Auctions place no conditions on the lease of the property, and the right to lease the property is granted to the highest bidder. The auctions may use either open or sealed bids. In a concourse, the lease is also granted to the highest bidder, but this competition differs from auctions in that there are conditions placed on the lease of the property. For example, if the enterprise is a store of factory, the lessee may be required to maintain the business and keep the present employees for a determined amount of time. Also, participation in bidding may be limited to employees of the enterprise and to people living in the U.S. Department of Commerce July 1 996 RDBD 5 - St Petersburg 1 3 -6 surrounding area. Investment tenders are used for the lease of non-commercial municipal property, including assets of bankrupt or liquidated companies, temporarily closed buildings, and vacant buildings in need of repair. This type of lease includes an obligation by the buyer to undertake a previously defined sale, the lessee is required to complete renovations or undertake significant capital improvement. In some cases the building must be repaired or rebuilt to exact specifications. The property is not necessarily granted to the highest bidder, because the choice of the winner is based not only on the amount of the bid, but also a determination by the Investment Tender Commission that the bidder will fulfill the investment conditions of the competition. Investment tenders are either open or closed. Open investment tenders are accessible to all potential investors, including foreign individuals and firms. These open tenders may include a pre-qualification stage, in which the potential investors must complete a questionnaire about their business activities, financial status, and practical experience. The applicants are screened, and those selected then submit their tender documents. Closed investment tenders do not contain this particular pre-qualification procedure, but investors are invited to participate only after agreeing on certain conditions as defined by the Investment Tender Committee. In these competitive bidding processes, the current occupants are often given special benefits, such as a 30 percent discount off the bid price or a longer term to pay for the property. A foreign investor can take advantage of these benefits by forming a joint stock company with the Russian enterprise occupying the site. Although most leases on municipal property are granted by competitive bidding, some are granted through direct contact. These leases may include conditions on the use of the property or requirements that the lessee contribute money for the improvement of infrastructure, including electric, water, and sewage systems. If the property to be leased is smaller than 300 square meters, the District Commission for Determining the Form of Renting Commercial Buildings in the region in which the property is located decides by which method the lease will be granted This Commission is comprised of representatives from the Committee on the Administration of City Property (Russian abbreviation KUGI), the City Architectural Committee, the Economic Development Committee and others. Approval to grant a direct lease of the property, and the definition of the terms of the lease are made by the Chief of Administration of the District Commission. If the lease is granted by a competitive bid. the City Property Fund manages the competition. If the property to be leased is larger than 300 square meters, the City Commission for Determining the Form of Renting Commercial Buildings decides the method of U.S. Department of Commerce Julv l*wo RDBD 5 - St Petersburg 13-7 granting the lease. A decision to grant a lease through direct contract must be approved by the Chief of KUGI, who also sets the terms of the lease. If the lease is granted by competitive bidding, the competition is handled by the City Property Fund. B. Purchase of Municipal Property All enterprises in St. Petersburg were state-owned. Most of these enterprises are in the process of being converted to private ownership. KUGI determines which properties will be sold, as well as the conditions of the sale, and the competitive bidding method. The sale is in the form of an auction, concourse, or investment tender, as described above. There are no legal restrictions to foreign investors participating in these competitive bidding procedures. The purchase of an enterprise is not simply the purchase of the physical plant, but the purchase of the entire enterprise. Conditions are necessarily placed on the sale. For example, if a small factory is purchased, the staff and production must be maintained for two years. KUGI also sells, by competitive bidding, assets of liquidated of companies and vacant buildings. Large enterprises are often privatized through the issuance of stock. A portion of the stock is given or sold to the employees of the enterprise and the remainder of the stock is sold at auction. Foreigners can participate in the auctions, but must be aware that the enterprise must be maintained. Several categories of state-owned property can not be privatized, including defense related enterprises, natural resources, infrastructure facilities, and property of historical or cultural value. The purchase of privatized property does not constitute the purchase of the land under the building. The purchaser of the enterprise signs a lease on the land and pays rent to the city. If part of a building is purchased, a 1 5 year lease is signed and if an entire building is purchased, a 49 year lease is signed. In theory, purchase of an entire building allows for purchase of the land; however, the legal procedures for such a sale are not yet defined. Under current plans, these procedures should be enacted by October, 1993. C. General Concerns Relating to Property Acquisition Many potential American investors are discouraged by the conditions placed on the lease or purchase of municipally-controlled property, by both competitive bidding and direct contract. This highlights a basic difference in mentality between the Russian officials and foreign investors. Russian officials believe that there are a multitude of foreign investors who are so eager to enter the Russian market, that they will agree to many conditions placed by the city on the sale of property. The officials also are concerned that with the current weak ruble, large tracts of valuable property will be bought inexpensively by foreigners, if property sales are not carefully controlled. American property developers, on the contrary, are frequently deterred by complicated procedures and murky legal conditions for property acquisition. Large scale investors are U.S. Department of Commerce July 1 996 RDBD 5 - St Petersburg 13-8 reluctant to take the risks in this immature and uncertain market. Large American companies, who are accustomed to receiving incentives to build a factory or set up operations in a foreign city are surprised and discouraged by the complicated procedures established by the city government. D. Municipal Property Authorities — Key Contacts Committee on the Administration of City Property (KUGI) Chairperson: Sergei Georgiyevich Beliayev Address: Smolny Tel: (812)278-1557 City Property Fund Chairperson: Edward Grigoryevich Boure Address: 5 Grivtsova Ulitsa Tel: (812)310-4645 Fax: (812)319-9426 City Architectural and Building Committee Chairperson: Oleg Andreyevich Kharchenko Address: 2 Lomonosov Square Tel: (812) 315-5216 Fax: (812) 110-4825 VII. REAL ESTATE FIRMS AND DEVELOPMENT COMPANIES OPERATING IN ST. PETERSBURG (The following list is for readers' information and does not constitute an endorsement of individual firms.) Atlantic Investment Address: 18 Ryleyeva Street Apt. 12, St. Petersburg 193023 Tel: (812)275-8590 Fax: (812)275-8590 Contact: Susan Kersh Atlantic Investment, an American owned real estate firm acts as a broker for rental of Westernized residential and office space. The majority of its business is completing specialized real estate searches for Western clients and the privatization and conversion of communal apartments. This firm has a registry of 300 buildings in the historic center of the city and matches clients' specific needs. U.S. Department of Commerce July W^o RDBD 5 - St Petersburg 1 3 -9 BusinessLink Address: 8 Marata St. Petersburg., St. Petersburg Tel: (812) 112-1513,218-6900 Fax: (812)315-4951 Contact: Stanislav Yeremeyev, General Director BusinessLink, a Russian owned firm provides consultancy, human resources, and public relations services in addition to their investment project management services. The latter service handles large development projects, from the identification and analysis of sites, to aid in finding local architects and contractor to complete the construction. BusinessLink also facilitates the expedition of official agreements and licenses with city officials. DINAT'F Address: 72 Ligovsky Prospect Apt 12 St. Petersburg Tel: (812) 112-0765 Fax: (812) 112-0765 Contact: Dmitry Schiotin DINAT'F, a Russian real estate agency acts as a broker for apartments and office space. A majority of their business is in renting privatized apartments in the center of the city. Dom Plus Address: 3 Griboedova Canal St. Petersburg 191186 Tel: (812)312-1132,210-7607 Fax: (812)312-8351 Contact: Andrei Ivanov Russian owned real estate agency Dom Plus has apartments and offices available for rent throughout the city. The firm also plans to reconstruct two buildings in the center of the city for offices, retail stores, and high class apartments. Skanska Address: 6 Admiralteijskij Prospect, 191065 St. Petersburg Tel: (812) 312-8169 Fax: (8 12) 312-8610 Contact: Ludmilla Bakayutova, Helena Raiala, managers Haka is the largest full service construction company in Finland. In St. Petersburg, they completely renovate and convert buildings in the historic center of the city into apartments and office space. The buildings are completed to Western standards and include security systems. The price to purchase this space starts at approximately $1500 per square meter. U.S. Department of Commerce July 1 996 RDBD 5 - St Petersburg 13-10 Inform Futur Address: 12 Tambovskaya Street, St. Petersburg 192007 Tel: (812) 166-8543 Fax: (812) 315-1701 Contact: Elena Nikulecheva A German-Russian project, Inform Futur reconstructs buildings and provides Western-style office space. One building is completed and fully rented, and two more buildings will be available for occupancy in May, 1 994. This firm rents only to foreign clients. The rent averages $600 per square meter per year, and both short and long term leases are available. The offices are located in the Frunzenskiy region, not in the prime downtown location. InterOccidental Address: 49 Vosstania Street St. Petersburg Tel: (812) 273-4323, 273-5406, 272-1857 Fax: (812)272-8031 Contact: Dan Corcoran, President InterOccidental, a California company is the largest real estate firm in St. Petersburg. It is a full service agency providing appraisal, marketing, and advertising. In addition, the firm offers escrow services, which coordinate through Western banks the transfer of payment, and delivery of seller's proceeds and lease payments throughout the world. A primary activity of the firm is the conversion and sale of communal apartments. Lek Estate Address: 90/92 Nevsky Prospect Tel: (812)272-1097, 275-6675 Fax: (812)275-2880 Contact: Alexander Pakhomov, Vice manager Lek Estate is a Russian real estate trading company which rents and sells apartments and offices throughout the city. They are also involved in the construction of apartment buildings in the outer regions of the city and in the conversion of communal apartments in the historic center. Management Systems, Corporation Address: Box 76, Pushkin 7 St. Petersburg 189620 Tel: (812)476-1550 Fax: (812) 312-2555 Contact: Mr. V. Bolshich Management Systems Corporation is a Russian firm which handles the lease and U.S. Department of Commerce .'ulv W^ RDBD 5 - St Petersburg 13-11 sale of apartments and offices throughout the city. Their capital construction projects include the building of warehouses, factories and cottages. Neva-Kompekt Address: 92 Fontanka Embankment Building 2 Tel: (812) 312-6325,113-2548 Fax: (812)312-2555 Contact: Oleg Kulebakin Neva-Komplekt is a Russian real estate firm which brokers the lease of residential and office space. They also offer market analysis, site selection services for industrial development projects. Pukkila-Talot Company Address: 60 Sverdlovskaya Embankment Apt. 47 St. Petersburg Tel: (812) 224-6178,230-0725 Contact: Jussi Urpola Pukkila-Talot Company is a Finnish firm involved in the reconstruction of historic buildings in the city center. The buildings, are renovated for offices and apartments to Western standards. Ryland Address: 3 1 Gertcena Street St. Petersburg 190000 Tel: (812)314-6435,312-5762 Fax: (812)314-7536 Ryland, an American homebuilding company, is constructing a 23 home Western style community 20 minutes from the center of St. Petersburg. Three homes will be completed in October, 1993, and the remaining units by 1995. The homes have two or three bedrooms and will sell for approximately $250,000 each. St. Petersburg World Financial and Trade Center Address: Russia United States 5 Griboedova Canal 963 0-J Black Mountain Road St. Petersburg San Diego, CA 92126 191186 Tel: (812)312-3557 (619)586-0748 Fax: (812)311-0471 (619)693-0774 The American firm, St. Petersburg World Financial and Trade Center builds modular, pre-fabricated offices for interim use. Firms can design their own office space U.S. Department of Commerce July 1 996 RDBD 5 - St Petersburg 13-12 and have the office constructed in one month. The company also plans to build a trade center complex half-way between the center of the city and the airport The complex is planned to have 15,500 square meters of office space, 5,000 square meters of retail space, 125 apartment units, a 500 room hotel, and a conference center. Construction of the complex will begin in stages after 50% of the units are pre-rented. The Twentieth Trust Address: 44 Nevsky Prospect St. Petersburg 191011 Tel: (812)311-1696 Fax: (812) 110-6448 A Russian company Twentieth Trust Corporation (CTT) is building new apartment buildings in the city, which are well constructed by Russian standards. CTT also plans to develop a 36-story office building and business center complex on Vasilevsky Island, overlooking the Gulf of Finland. Building is currently scheduled to being in April 1994 with occupancy scheduled for 1996. VMB Address: 6 Pisarev Street Apt. 8 St. Petersburg 190121 Tel: (812) 114-7589, 315-4967, 210-7090 Fax: (812) 114-7589 VMB is a Russian owned private stock company involved in real estate development. The firm converts communal flats to private apartments, develops and manages office buildings, and is presently constructing several apartment buildings. \AIB is also undertaking a new project to construct cottages outside of St. Petersburg. ADDENDUM European Properties Invest Ltd. Address: 10 Ligovsky Prospect, office no. 24 Tel: (812)277-6426 Fax:(812)277-6424 Contact: James Navagh, Director, Executive Sales "European Properties" is a British-owned real estate consultancy and brokerage service They are currently handling the renovation and rental of a five-story commercial building, "Europa House" on Artilleriskaya Street, near the U.S. Consulate. The property has approximately 12,000 square meters of office space being renovated to Western standards U.S. Department of Commerce Juh l^^ RDBD 5 - St Petersburg 13-13 CHAPTER 14 - SELECTED DEFENSE CONVERSION SUCCESS STORIES 1. ALLIED-SIGNAL JOINT VENTURES IN RUSSIA a) Allied-Signal (Bendix King) - Cockpit Avionics Allied-Signal (Bendix King)'s Air Transport Avionics Division has begun a joint venture with the Scientific Research Institute of Aviation Equipment (NIIAO) of Zhukovsky , Russia. It will be providing avionics to the Russian commercial air traasport market. Allied-Signal will outfit the Tu-304 regional airliner (Tupolev) and the Yak-1 12 and Yak-42M (Yakovlev) with integrated Bendix-King cockpit avionics. b) ARIA - Integrated Avionics In August 1992, Allied-Signal, a major U.S. aerospace corporation, created the joint venture ARIA with the Scientific Research Institute of Aviation Equipment (NIIAO) to design, develop, and manufacture the next generation of integrated commercial avionics systems. ARIA signed contracts to supply integrated avionics for the Beriyev Design Bureau Be-200 multipurpose amphibian and also with Yak Aircraft Corporation to provide integrated systems for the Yak-242. c) RUBIX - Wheels and Brakes In August 1992, Allied-Signal's Aircraft Landing Systems business unit signed a joint venture with Rubin. Russia's largest supplier of wheels and brakes, to design, develop, and manufacture carbon brake systems for commercial aircraft being built in Russia. The joint venture will supply systems to Ilyushin for the II- 96 and to Tupolev for the Tu-204 and its derivatives. 2. ASTRONAUTICS - KEARFOTT - ELECTROAVTOMATIKA "AKE" ENTERPRISE In November 1993, Kearfott Guidance & Navigation Corp., a subsidiary of Astronautics Corporation of America started a joint venture in St. Petersburg known as "AKE". Kearfott provides a wide range of equipment for various programs including the Space Shuttle, Voyager, Magellan, B-l , B-2, F-14. F-16. and other major programs. Elektroavtomatika, a Russian aerospace design bureau, designs avionics and flight management systems for Russian commercial and military aircraft (MiG-31, MiG-29, MiG-21, Su-27, 11-96, Tu-334. and Tu- 204). It also builds display systems for the Buran Space Shuttle and power units used in satellites. AKE has won several contracts to supply avionics for the Tu-334 (a 100-passenger commercial airliner built by Tupolev) and for the Tu-204 (similar to the Boeing 757 and Airbus 320 aircraft ). Another project will provide throttle angle sensors to provide inputs to control die engines powering the Tu-204 airliner. An airport air traffic control holographic transparent window display system for Moscow airport w as installed in 1994. U.S. Department of Commerce Julv l1** RDBD 5 - St. Petersburg 14-1 3. INTERNATIONAL TECHNOLOGY GROUP (ITG) - FIRST OF MAY MACHINE BUILDING FACTORY (PERVOMAYSKIY MASHZAVOD - PMZ), KIROV In 1993, ITG, a California-based agricultural equipment manufacturer, established business relations with PMZ located in Kirov. PMZ, which formerly produced heavy equipment for the Soviet military, now produces railroad cranes and operates as a private joint stock company employing 3,000 employees. PMZ, with the help of ITG, is employing its technology and know-how to manufacture components for agricultural machines. PMZ recently shipped to ITG's main plant in the U.S. the first container of Russian-built parts for use in agricultural equipment. ITG has assigned their engineers and managers to work with PMZ plant in Kirov. Over the next four years, ITG hopes to increase Russian production for the export market while concurrently developing a Russian domestic market for its products. ITG has also worked out an arrangement with the International Executive Service Corps to place a volunteer executive familiar with defense conversion and TQM at the Kirov plant to help instill market expertise. 4. ANALYTIC SERVICES, INC. (ANSER) ANSER has signed a one-year agreement with TsAGI to receive background and contract information on wind tunnels, flight simulators, engine testing facilities, components and materials. The acquired information includes facility locations, operational status and user costs. ANSER, which has set up a Moscow office, has similar agreements with Russian Space Agency, NPO Energiya, and the Russia Academy of Sciences. 5. ASTRONAUTICS CORPORATION OF AMERICA This manufacturer of navigation and flight instruments, displays, and communications equipment is involved in a joint venture with a Russian electronics company, Elektroavtomatika. The joint company is called AKE, Astronautics Kearfott Elektroavtomatika. 6. ATASCO This U.S. sales and leasing company has begun a joint venture with Aeroflot St. Petersburg to form a startup Russian airline, ASA. 7. ROCKWELL IN RUSSIA Rockwell, a diversified high technology company, opened a Science Center in Moscow to conduct research in association with a number of Russian research institutes and production enterprises. Rockwell's Collins Commercial Avionics Division is working jointly with the State Scientific Research Institute of Aviation Systems [GosNIIAS], employing more than 100 Russian software engineers, to develop the avionics integration package for the new Ilyushin I1-96M commercial jet-liner for which Collins will supply the entire avionics configuration. Rockwell Collins has provided and integrated avionics for the I1-96M wide-body jet with Pratt & Whitney engines. U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 14-2 Collins Commercial Avionics was awarded a contract by Bravia to supply communications and navigation equipment for the Tu-204 airliner. Rockwell's Communications Systems Division and GosNIIAS are conducting some engineering feasibility research and studying the market in Russia for air traffic management systems that would utilize both the U.S. Global Positioning Satellite System and GLONASS, the comparable Russian system. T; also operate a high-technology design center in Moscow, staffed by more than 20 Russian engineers, involved in algorithm and signal processing design and related software and hardware development. Rockwell's Space Systems-Division, in a joint development with NPO Energiya, is developing the docking hardware for the ten docking missions planned for the Russian Mir Space Station and the U.S. Space Shuttle. Rockwell Automotive Division is working with KAMAZ (a heavy truck producer) and with AvtoVaz (a automobile producer in Togliatti) to provide components for the vehicles produced by these companies. The Allen-Bradley Division is participating in the modernization and conversion of Russian industry by supplying automation and control equipment and systems for a wide range of industries. 8. LITTON INDUSTRIES, INC. Litton Industries is providing inertial navigation systems to Aeroflot Airlines and has been selected to provide equipment for the new Ilyushin I1-96-M and the Tupolev Bravia Tu-204-222 transport aircraft. Litton is also negotiating with Russian authorities to provide air traffic control communications equipment for their airports. 9. LOCKHEED a) LOCKHEED - KHRUNICHEV - ENERGIYA INC. (LKEI) The joint venture between Lockheed, a U.S. corporation, and two Russian aerospace companies. Khrunichev Enterprise and Energiya, seeks to provide a wide range of launch services. b) LOCKHEED MISSILES & SPACE CO. Lockheed has established an agreement with the Khrunichev Plant to help market the Proton launch vehicle (which Khrunichev manufactures) to the West. NPO Energiya has become a partner in diis venture which is named Lockheed-Khrunichev-Energiya Int'l. Lockheed has also signed an agreement with NPO Energiya to cooperate on future space programs. U.S. Department of Commerce .'ulv I1** RDBD 5 - St. Petersburg 14-3 10. UNITED TECHNOLOGIES CORPORATION a) PRATT & WHITNEY/ILYUSHIN IL-96 PROGRAM Pratt & Whitney and other U.S. suppliers have provided the Russian firm Ilyushin with equipment and technical support to manufacture a prototype I1-96M long-range, wide-body aircraft, which is now being flight tested. Full scale production of this aircraft and a cargo version-both of which will receive Russian and U.S. FAA certification-is scheduled to commence in the near future. The value of the Pratt & Whitney engines and other U.S. content items used in each aircraft will range between $40-$45 million. Ilyushin currendy holds Letters of Intent for 30 aircraft. Current market estimates through the year 2005 represent potential export sales for U.S. suppliers of $10 billion. b) PRATT & WHITNEY/KLIMOV CORP./ENERGOMASH Pratt & Whitney is providing PW2337 engines for the I1-96M four-engine wide-body jet. It has established an agreement with the Russian rocket engine manufacturer NPO Energomash to market their RD-170, RD-701 and RD-180 engines. Pratt and Whitney Canada has formed a joint venture with Klimov Corp. to develop and manufacture small gas turbine engines for civil applications in Russia and the NIS. c) PRATT & WHITNEY/NPO ENERGOMASH ROCKET ENGINE PROGRAM Pratt & Whitney has an agreement with the rocket design company, NPO Energomash, granting Pratt & Whitney access to a vast array of space propulsion products and technologies developed by the Russian firm. A contract to test tri-propellant components at NASA Marshall Space Flight Test Center has been signed. d) PRATT & WHITNEY JOINT VENTURES IN RUSSIA Pratt & Whitney has invested $150 million to create joint ventures with two Russian companies—Perm Motors and Aviadvigatel— to make aircraft engines. One of the ventures would design and build commercial aircraft engines. The other venture will develop land-based turbines for gas-pumping stations. e) HAMILTON STANDARD/NAUKA SCIENCE & PRODUCTION ENTERPRISE Hamilton Standard has signed a long term collaboration agreement with the Nauka Scientific and Production Enterprise, a large manufacturer of aircraft environmental control systems in Russia, to create a joint stock company in Moscow. This company will design and build these systems for the Tupolev Tu-334 and Tu-204 aircraft. U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 14-4 0 HAMILTON STANDARD/PERM UNIT DESIGN BUREAU Hamilton Standard and the Perm Unit Design Bureau have agreed to jointly design and produce aircraft engine control systems for the new PS-90P engine being developed for the Ilyushin 11-96 and the Tupolev Tu-204. g) HAMILTON STANDARD SPACE ACTIVITIES Hamilton Standard has business agreements with three Russian enterprises: (1) Zvezda - for space suits, portable life supports, ejection seats and pressure suits; (2) Nauka - aircraft and spacecraft environmental and thermal control equipment; and (3) NIIKhimMash - spacecraft regenerable life support systems. Hamilton Standard is evaluating Russian space suits and environmental control systems/life support hardware used on the Mir station for NASA. It is also working on developing a common spacesuit for use during space walks on upcoming Shuttle to Mir missions. 11. WESTINGHOUSE ELECTRIC CORPORATION On March 30, 1994, Westinghouse Electric Corporation signed three business agreements in atomic energy, power generation, and air traffic management. These agreements entail capitalizing on joint Russian/Westinghouse technology investments to enhance key sectors of Russian infrastructure. The agreement with MINATOM, the Russian Ministry for Atomic Energy, will result in enhanced safety of operating nuclear power plants and incorporating safety technology in the nuclear plants under construction. The business agreement will lead to four partnerships in plant engineering, instrumentation and control, nuclear fuel, and low-level waste management. MINATOM operates 23 civilian nuclear power plants in Russia. The agreement with the Unified Electric Power System of Russia Of eES) , the giant power generation company with 210 megawatts of installed capacity, will concentrate on power plant efficiency and reducing air emissions. The joint ventures will modernize existing turbine generation equipment, repower older stations with state-of-the-art equipment, and develop new projects. YeES operates 51 power plants and owns stock in Prussia's 70 regional utility companies. 12. NORDEN - St. PETERSBURG On November 19, 1993, Norden Systems (now a part of Westinghouse Corp.) and the All-Russian Scientific Research Institute for Radio Equipment (VNIIRA), a Russian manufacturer of air traffic controls and navigational equipment, decided to combine their extensive experience by forming a joint venture known as "Norden-St. Petersburg." Norden-St. Petersburg initially intends to use Western-built equipment to rapidly upgrade airports in Russia, the Newly Independent States (NIS), and Eastern Europe. This joint venture eventually intends to qualify Russian sources for air traffic control equipment. Future plans include the development and upgrading of existing VNIIRA equipment and manufacture of Western equipment under license. The market for air traffic control equipment in die former Soviet Union is estimated to be $10.5 billion. This joint venture secured its first contract in die last quarter of 1993. U.S. Department of Commerce Julv I'**' RDBD 5 - St. Petersburg 14-5 13. THE BOEING COMPANY Russia's Interstate Aviation Committee (MAK) has certified the Boeing 737 family for ownership and operation by MS airlines. An enormous new market is opening up for Western aircraft, with potential sales of 1 ,300 jet transports over the next 10 to 12 years. The independent Russian airline, Transaero, is currently leasing two Boeing 737s and took leasing delivery of two new B-757s in 1994. Aeroflot-Russian International Airlines is also leasing two B-767s. Boeing has opened the Boeing Technical Research Center in Moscow. This will be a center for research projects jointly developed with Russian universities and technical institutes to take advantage of Russian scientific/technological expertise. Potential projects include research and development for computational fluid dynamics and research into stronger metals and alloys. BOEING DEFENSE & SPACE GROUP has agreed to team up with the Russian company NIIKhimMash in order to jointly develop life-support systems, possibly for NASA's international space station. 15. BROOKE GROUP This firm is involved in a joint venture with the Mil Design Bureau to market and produce Mil-Brooke helicopters called Mil-Brooke Helicopters, Ltd. Mil-Brooke has selected Danubian Aircraft Company of Hungary to be its official service center for Europe. The joint venture is currently looking for other possible service centers in North America, Latin American and Asia. 16. CFM INT'L (GENERAL ELECTRIC) This joint venture between General Electric Company and the French company SNECMA has been negotiating a deal to re-engine 20 Il-86s for Ilyushin Design Bureau. 17. DYNAIR TECHNOLOGIES INT'L DYNAIR was granted $250,000 by the city of St. Petersburg and the U.S. Trade and Development Agency for a feasibility study for an air cargo center at Pulkovo Airport in St. Petersburg. It has recently been awarded the contract to develop the air cargo center and free trade zone around the airport by the St. Petersburg municipal government. 18. ERNST & YOUNG The U.S. accounting and aviation consulting firm has won a tender offered by the U.S. Trade and Development Agency (TDA) to lead a group of U.S. companies in the development of a business plan for the construction of a major international airport in Novosibirsk, which will become a major transportation hub between Europe, the Far East and S.E. Asia. The project is being financed by a $200,000 grant provided by U.S. TDA. The project at Novosibirsk's Tolmachevo Airport will cost an estimated $1.1 billion and is targeted for completion in 2025. Other firms included in the group are Boeing Aerosystems Int'l., The Austin Co., Dean Witter, Gensler & Associates and P&D Technologies. U.S. Department of Commerce My 1996 RDBD 5 - St. Petersburg 14-6 19. FAIRCHILD AIRCRAFT Fairchild has entered a joint venture NORMVEST with a Russian fastener manufacturer, Normal Production Association which combines bom companies' capabilities to export quality fasteners to the worldwide aerospace market. Fairchild has been funded $400,000 by the U.S. Trade & Development Agency for a study on the development of a new small (two to five seat) aircraft by Ilyushin. 20. GULFSTREAM AEROSPACE CORP. Gulfstream is working with Saturn/Lyulka to develop business aircraft. It is also in a partnership with Sukhoi Design Bureau to develop Su-21 and Su-51 business aircraft with Rolls-Royce engines. 21. HONEYWELL, INC. Honeywell has provided inertial reference systems and other avionics for the Tu-204 airliner. 22. LEHMAN BROTHERS This firm has been selected by Russia's Ministry of Transport to head a consortium that will prepare a master plan for the modernization and development of Moscow civil airports. Along with Lehman Brothers are KPMG Peat Marwick, Texas construction firm, Brown Root, and law firm, McGuire, Woods, Battle, Booth. The study will cover the creation of a net air transportation hub in Moscow and the costs of modernizing and expanding the airports. 23. MCDONNELL DOUGLAS AEROSPACE McDonnell Douglas Aerospace has established a joint research pact with several Russian companies for the development of moon rover vehicles and hopes to benefit from Russian space technology in this project. McDonnell Douglas is investigating cooperative ties with the Russian Institute of Space Research (IK.I). the Iavochkin Association and the Mobile Vehicle Engineering Institute. 24. MENASCO AEROSYSTEMS Menasco has been negotiating with Gidromash to jointly manufacture aircraft parts. 25. MOTOROLA'S IRIDIUM CORP. Motorola has cooperated with Khrunichev and will use Russian proton launchers to help launch a commercial satellite from a Russian site. U.S. Department of Commerce Julv !**> RDBD 5 - St. Petersburg 14-7 26. NASA NASA has signed a $1 million contract with NPO Energiya for Soyuz Docking System Evaluation. In December 1993, it signed an MOU on Cooperation in Fundamental Aeronautical Sciences with the Russian State Committee for Defense Branches of Industry (GOSKOMBORONPROM). Eight project areas have been identified including high temperature composites, environmental concerns in aviation, advanced aerospace materials, hypersonic technologies and experimental test facilities. 27. RUSSIAN AMERICAN FAR EASTERN TRANSPORT COMPANY (RAFETC) The recently formed U.S. -Russian joint venture has begun work on a project to install ATC systems and construct a terminal at the international airport in the Siberian city of Khabarovsk, a key link between the U.S. and Asia. The Ralph M. Parson Co. has signed an agreement with the Lhabarovsk design institute, Dalaeroproekt, to perform a joint feasibility study for the reconstruction of the airport and the construction of a new freight airport at nearby Vanino. The consortium, headed by Ralph M. Parsons Co., includes these participating U.S. companies: AMR Services Corp., Harris Corp. and Hughes Airport Systems. 28. RUSSIAN-AMERICAN SCIENCE, INC. This company is the official commercial representative in the U.S. of the Russian Academy of Sciences and offers access to all of the Academy's scientific institutes, research materials and databases. It markets Russian technologies, including the Beriev Taganrog "wing-in-ground-effect" (WIG) amphibious aircraft, in the West. 29. SPACE COMMERCE CORP. This firm markets goods and services for several Russian space companies and organizations, including Glavcosmos, Zvezda Research, Development & Production Enterprise, Lavachkin Association and Mashinostroenia Scientific & Production Enterprise. 30. TELEDYNE CONTINENTAL MOTORS Teledyne is currently working on engines for 11-103 wide transport and Yak-112 mid-range aircraft. 31. WESTINGHOUSE ELECTRIC CO. The lead U.S. company in the Raduga Consortium ("raduga" means "rainbow"), which was formed in 1993 to manage and implement a 15-year project to modernize the air traffic management system of the former Soviet republics. Westinghouse estimates the value of the work to be done for ATC modernization in the NIS range from about $10 to $12 billion. The consortium also consists of the French company Thomson-CSF, the joint venture company Buran (which includes Italy's Alenia), and a number of Russian companies. U.S. Department of Commerce July 1996 RDBD 5 - St. Petersburg 14-8 CHAPTER - 15 BUSINESS PRACTICES, SAFETY AND SECURITY AN ANONYMOUS BUSINESSMAN'S COMMENTS: While Russia's market, technologies, and available expertise offer unique opportunities, prospective business persons should go in with their eyes open. Changing tax policies, nascent banking system and fluctuating currency, combined with reports of unusual business practices including corruption/ payoffs, and personal safety considerations should all be factored into investment decisions. While Russia offers a great deal to potential investors, its emerging and sometimes challenging business environment needs to be kept in perspective. Tips on doing business in Russia 1 . Doing business in Russia is not for the timid. It is not for the shy, for the unimaginative, or for the unadventurous. It is not for the easily frazzled or frustrated. Doing business in Russia to-day is for that quintessentially American type — the pioneer. People who succeed in Russia are daring, creative, innovative, persistent, patient, and flexible. Some people succeed in a big way; others fail in a big way, many more just keep plugging along. It requires a willingness to take on greater risks than in other markets 2. Everything here can be difficult, or at least different. Russia has been cut off from the West for most of its history. Russia has little experience with capitalism or democracy. 3. Russia is not like America. You cannot make it like America, no matter how much you scream and shout. Do not waste your energy. 4. Don't expect your heat, your phone, and your electricity to work all the time. 5. Don't break Russian laws. Avoid drugs, sleazy business partners, bribery, and the mafia Drink alcoholic drinks in moderate quantities. Avoid all food or drinks offered by casual acquaintances or strangers. Avoid trying to keep up with your local partners or hosts while drinking during receptions. 6. Don't pay off the mafia. If you are worried about your safety, hire a reputable security service. Do not carry too much cash. Use credit cards or travellers checks 7. Keep a low profile. Do not wear expensive jewelry, clothing or travel in showy cars. They attract criminals like flies. Avoid casinos, they are extremely expensive 8. Develop common sense, lots of it. U.S. Department of Commerce Julv W*^ RDBD - 5 St. Petersburg 15-1 9. Learn some Russian, even if its only "Da", "Nyet", and the alphabet. 10. Don't panic. (The motto is borrowed from the "Hitchhikers Guide to the Galaxy". It applies equally well in Russia.) 1 1 . Invest a great deal of time trying to figure the country out. The more you understand, the better. Get out of your hotel and walk around. See what people are wearing, and buying, and selling. Walk down Old Arbat and bargain for souvenirs. Spend an evening with a Russian family, and learn all you can. 12. Don't expect to come to Russia, spend three days, and do a deal. To build a partnership that works takes a personal investment of weeks or months. 13. Do not let culture shock impair your business judgment. Sometime during your first six months, everything will seem hopeless. That does not mean it is. 14. Don't get intimidated when Russians shout at you. They are an emotional people, and a little loud. 15. Don't come to Russia to try to make a fast buck. It won't work. 16. Don't go it alone. Come to the US & FCS Business briefing, and join the American Chamber of Commerce. Make friends with other Westerners in Russia. 17. Avoid doing business with new companies. Choose established old-line enterprises or companies with stable backgrounds that manufacture or produce the product in-house. SECURITY COMPANIES OPERATING IN RUSSIA Control Risk Group 8200 Greens Pond Drive, Suite 1010 McLean VA 22102 Edward G. Grubb Phone: (703)893-0083 Fax: (703)893-8611 A large international security company with 250 employees around the world. Agents for a Lloyds of London consortium (Cassidy Davis Hiscox). U.S. Department of Commerce July 1 996 RDBD - 5 St. Petersburg 1 5-2 Corporate Risk International (CRI), 1 1250 Waples Mill Road Fairfax, VA 22030 President: Sean M. McWeeney Phone: (703)359-3901 Fax: (703) 359-3903 A full service corporate security consulting and crisis management firm Specializes in background investigation of foreign partners, travel risk reports, international extortion and v kidnap negotiations. An international response team is available on call on a 24-hours a day basis worldwide. CRI is the exclusive agent for Professional Indemnity Agency, Inc., coverholders for Lloyds of London and several Class-A rated insurance companies. Kroll & Associates 900 3rd. Avenue, 7th Floor New York, NY 10022 Norb Garett, Managing Director-International Phone: (212)833-3261 Fax: (212) 644-5794 Moscow office: Richard Pryor Phone: 011-70-95-943-9404 Fax: 011-70-95-943-9440 Washington, DC office: Phone:202-659-1177 Fax: 202-659-9546 A full service international security and investigative consulting firm with 260 employees and 1,000 contracted associates worldwide. Services offered include corporate and physical security, business partner evaluation and other due diligence, litigation support, crisis management, kidnap and hostage response, and overland investigations. The consultant of choice of the American International Group for its kidnap and ransom, malicious product tampering, and sabotage coverage. International Business Research (U.S.A.) Inc. 92 Nassau Street Princeton N.J. 08542-4519 Phone: (609)683-1100 Fax: (609)683-8917 Michael Allison, President U.S. Department of Commerce July l°°o RDBD - 5 St. Petersburg 1 5 - 3 A security consulting company offering due diligence checks (on foreign partners), product diversion investigation services and international business research. INTERPASS, Ltd. (International Protection and Security Services, Ltd.) 88 North Broadway IrvingtonNY 10533 Phone: (914)591-5200 Fax: (914) 591-5362 Dennis M. Dwyer, President A full service, corporate security firm with offices in New York and Washington, DC, operates worldwide. INTERPASS, Ltd. Provides threat assessments, executive protection, security surveys, technical security assistance and complete investigative services, including due diligence, asset searches, product diversion, financial fraud and money laundering deterrence. The Parvus Group 8403 Colesville Road, Suite 610 Silver Spring. MD 20910 (Incorporated in 1 994) Eric Bassett, Manager, Business Development Tel: (301)589-4949 Fax: (301)589-0007 Moscow ZAO Parvus-Dzheriko, a Parvus Group subsidiary based in Russia, has representive offices located throughout Central Eurasia. In all, Parvus has several hundred security and investigative associates on call in Russia, Ukraine, the Caucasus, the Baltic countries and Central Asia. ZAO is officially incorporated in Moscow. U.S. Department of Commerce July 1 996 RDBD - 5 St. Petersburg 1 5-4 CHAPTER 16 - DIRECTORY OF BUSINESS SERVICES BUSINESS CENTERS IN ST. PETERSBURG The following business centers are equipped with fax, telex, computers, photocopiers, etc and provide translators. American Business Center ™ - St. Petersburg Janna Agasiev 57 Bolshaya Morskaya, St. Petersburg Int'lTel: 011-7-812-850-1900 Int'lFax: 011-7-812-850-1901 Local Phone: 110-6042 Local Fax: 311-0794 Costa Ltd. Michael Linehan Tel/Fax: 271-4110 Grand Hotel Europe Cristof Schleissing, Manager Tel: 312-0072 Ext. 6231, 6234 Fax: 119-6002 Telex: 64121073 Hotel Astoria Larissa Zharikova, Manager Tel: 210-5866, 5867, 5868 Fax: 311-4212,311-7362 Neptune Business Center Tatiana Chueva, Manager Tel: 210-1728, 1707 ^ Fax: 311-2270 American Chamber of Commerce in Russia American Business Center ™, Suite 735 2 Berezhkovskaya Nab. Moscow, Russia Phone: (01 1-7-095) 941-8435 Fax: (011-7-095)941-8437 James Tilley, President Peter Charow, Executive Director U.S. Department of Commerce RDBD 5 - St. Petersburg Juh W«* 16-1 NON-PROFIT BUSINESS DEVELOPMENT SERVICES in St. Petersburg Center for Citizen Initiatives 4 Quarenghi lane, Room 4 1 8 Spb 191180 Tel: (812) 271-0467 Valentin Yemeliin Vice President Citizens' Democracy Corps, Inc. 38 Sadovaya St. Spb 190037 Tel: (812)315-7393 John Vozza General Director International Executive Service Corps Moscow Tel/Fax: (095)280-7771 Walter Ousterman Country Director for Russia Andrew Wolff, Assistant PERSONNEL SERVICES The following companies specialize in the recruitment and selection of personnel for permanent and temporary positions. BusinessLink Stanislav Yeremeyev, General Manager Tel: 315-5387 Tel/Fax: 315-4951 HILL International Bruce Zelony / Julia Troschchy 23 Bolshaya Morskaya Tel: 312-6701 Fax: 312-5368 Personnel Corps Hilary Greene/Michelle Schorr 104 Nevsky prospect Tel: 275-4586 Tel/Fax: 275-8323 U.S. Department of Commerce RDBD 5 - St. Petersburg 16-2 July 1996 LOCAL TRANSPORTATION SERVICES in St. Petersburg Avtodom (Moika Emb.56) Tel 315-9043 Mercedes-Benz cars with Russian drivers Grand Hotel Europe Tel: 113-8071 Foreign cars with Russian drivers. Hotel Astoria Tel: 210-5858 Foreign cars with Russian drivers. Interavto (Hotel Moskva) Tel: 274-2367,274-9364 Mercedes-Benz cars with Russian drivers. Lingva Tel: 312-1824 Russian cars with Russian drivers . Matralen Cars (Lyubotinsky proezd) Tel: 298-6804/3648 Ford Scorpio cars with Russian driver. COURIER SERVICES IN ST. PETERSBURG DHL 5 Giiboyedova Canal, Off. 325 Alisdair Munro Spb General Director Tel: (812) 31 1-2649, 210-7545,7654 Alexander Kiselev Federal Express 2 Mayakovskogo st. Sergei Moroshkin Spb 191025 Director Tel: (812)279-1287,1931 Mikhail Batkhin Fax: (812) 273-2139 Deputy Director U.S. Department of Commerce July l«wt« RDBD 5 - St. Petersburg 1 6-3 UPS 12 Karavannaya st. Spb Tel: (812) 312-2915 Tel/Fax: (812) 314-7037 TNT 50 Liteinyi privatized. Spb Tel: (812) 273-6007 Fax: (812) 104-3684 Margarita Kuchinskaya General Manager Alexander Sawka General Country Manager Igor Koltsov REAL ESTATE FIRMS in St. Petersburg Atlantic Investment Spb 104Nevsky pr., Tel: (812)275-5864 Fax: (812)275-4587 Susan Kersh BusinessLink Spb 199178 14, 13 th line, Vasilievsky island Tel: (812) 218-6900 Fax: (812) 218-7940 Stanislav Yeremeyev General Director DINAT'F Spb 12 Ligovsky pr., apt. 72 Tel: (812) 112-0765 Fax: (812) 112-0765 Dmitry Schiotin Manager Dom Plus Spb 191186 3 Griboyedova canal Tel: (812) 312-1132,210-7607 Fax: (812) 312-8351 Andrei Ivanov Executive Director U.S. Department of Commerce RDBD 5 - St. Petersburg 16-4 July 1996 Inpredservice Spb 191187 34 Kutuzova emb. Tel: (812) 272-1500, 273-7973 Fax: (812)279-5024 Pavel Kalinin Deputy Director Interoccidental Spb 49 Vosstaniia st. Tel: (812)273-4323,5406,272-1857 Fax: (812)272-8031 Edvard Tiktinsky Sales Manager US BUSINESSES IN ST. PETERSBURG CONSULATE DISTRICT AT&T -Dalnaya Svyaz' American Express Americar (Chrysler) Atlantic Investment Ben & Jerry's Petrozavodsk Benson & Company BIONT Corporation BusinesssLink Burrows Paper Corporation Catalog Express Caterpillar Coca-Cola Computerland Delta Airlines Delta Telecom -U.S. West DHL Dialog Invest Digital Equipment Elegant Logic Eli Lilly & Elanco Ltd. Fresh Air Gibson Musical Instruments Goodwill Games, Inc HILL International Honeywell Tel 186-7537 Fax 252-1252 Tel 119-6009 Fax 119-6011 Tel 544-0590 Fax 544-5824 Tel 275-8590 Fax 275-8590 Tel (81400)74108 Tel 311-7097 Fax 311-7097 Tel 226-4456 Fax 226-9100 Tel 218-6900 Fax 218-7940 Tel 314-5148 Fax 314-5148 P.O Box 105 Spb 196070 Tel 311-5644 Fax 311-9557 Tel 271-6189 Fax 274-2678 Tel 224-0932 Fax 224-0932 Tel 311-5819,20 Tel 275-4149 Fax 275-0130 Tel 311-2649 Fax 314-6473 Tel 164-8956 Fax 164-9392 Tel 298-2370 Fax 298-0748 Tel 311-1064 Fax 311-0452 Tel 299-7030 550-3026 Fax 299-7030 P.O Box 163 SPb 197101 Tel 298-4339 Tel 232-7364 Fax 232-7364 Tel 312-6701 Fax 312-53(1$ Tel 275-3504 Fax 275-2804 U.S. Department of Commerce RDBD 5 - St. Petersburg 16-5 Julv W* Hotel Development Corp. Tel 314-3178 Fax: 311-0471 IBM Tel 312-6017 Fax: 312-3887 mS, Inc. Tel 311-5838 Fax: 311-3193 International Group Tel 311-2483 Fax: 311-2483 InterOccidental Tel 273-4323 Fax: 272-8031 ITF Corp. (Petrozavodsk) Tel (81400)94034 Fax (from the US): 47-851-8597 Johnson SC Tel 311-8990 Fax: 315-5156 Kamennyi Ostrov Tel 234-1011 Fax: 234-1266 3 M-Lenterefonstroi Tel 101-4474 Fax: 172-7365 Madison Brands Inc. Tel 543-5462 Otis St. Petersburg Tel 252-3694 Fax: 252-5315 Personnel Corps Tel 275-4586 Fax: 275-8323 Petroff Motors (General Motors) Tel 235-2386 Procter & Gamble Tel 113-8066 Ext. 455 Fax: Ext. 459 Petersburg Product Intl (Gillette) Tel 106-3821 Fax: 106-3479 Rank Xerox Tel 315-7670 Fax: 315-7773 PJR Nabisco (RJR Petro) Tel 213-1700 Fax: Fax: 213-1955 213-1835 Ryland Homes Tel 314-6515 Fax: 314-7536 Russki Market Tel 112-6864 Fax: RusTex International Tel 109-6914 Fax: 109-6914 Sara Lee Tel 114-5660 Fax: 114-0740 SPASISS (SatCom) Tel 218-6313 Fax: 218-6313 Sovan Teleport (JV) Tel 311-8412 Fax: 311-7129 Tambrands St. Petersburg Tel 560-1319 Fax: 560-9714 Telinfo Tel 315-6412 Fax: 312-7341 Teleport Spb Tel 567-3731 Fax: 265-0102 The Source Tel 274-3080 Fax: TDV Ford Motor Dealership Tel 521-4613 Fax: 521-8547 UPS Tel 312-2915 Fax: 314-7037 Wal-Rus Ltd Tel 273-6746 Fax: 273-5192 CONSULTING/REAL ESTATE/LAW FIRMS Arthur Andersen Baker & McKenzie Tel: 350-4813 Fax: 213-7874 Tel: 310-5446 310-5941 310-5544 Fax: 310-5944 U.S. Department of Commerce RDBD 5 - St. Petersburg 16-6 July 1996 Costa Coopers & Lybrand Sharon Deeney, Attorney Ernst & Young Hotel Development Corp IBSInc IMID InterOccidental McKinsey & Co Pepper, Hamilton and Scheets Russian- American Law Firm RusTex International Sam Stern Law Office, (Pillsbury, Madison and Sutro) Transworld Communications World Business Relations Tel 271-4110 Fax 271-4110 Tel 210-5528 Fax 210-5528 Tel 356-6990 Tel 116-0157 Fax 312-5320 Tel 314-3178 Fax 311-0471 Tel 311-5838 Tel 264-6614 Fax 264-6614 Tel 273-4323 Fax 272-8031 Tel 119-6050 Fax 119-6049 Tel 273-2377 Fax 273-2377 Tel 114-5660 Fax 114-0740 Tel 109-6914 273-4440 Fax 109-6914 Tel 275-3497 Fax 275-4587 Tel 112-4787 Tel 246-4001 St. Petersburg Stock Exchange Dr. Grigori A. Rozhkov, Director of Public Affairs 103, V.O. Bolshoy Prospect Exhibition complex, pav. 6, St. Petersburg, Russia 199106 Tel: (812)355-59-62 Fax: (812)355-59-88 Investments International Business Journal Georgievskiy per. 1 103009 Moscow Tel: (095) 292 3812, 292-1869 Fax: (095)292 3812 U.S. Department of Commerce RDBD 5 - St. Petersburg 16-7 Julv WOo THE SABIT DEFENSE CONVERSION PROGRAM Fostering U.S.-NIS Business Contacts and Opportunities WHAT IS THE SABIT DEFENSE CONVERSION PROGRAM? The U.S. Department of Commerce's Special American Business Internship Training Program (SABIT; is collaborating with the Bureau of Export Administration (BXA) to implement a $1 .2 million specialized training program for over 100 defense experts from Belarus, Kazakstan, Russia, and Ukraine. This Initiative is designed to facilitate the conversion of defense enterprises in the New Independent States fNISj while developing long-term U.S.-NIS business relations and enhancing U.S. trade opportunities in the region. HOW CAN THE SABIT DEFENSE CONVERSION PROGRAM ASSIST U.S. FIRMS? The SABIT Defense Conversion Program provides a unique marketing tool for U.S. companies interested in doing business in the NIS. The Defense Conversion Program interns are influential mid- to senior-level NIS business managers in the same or similar sectors as their U.S. host firms. Upon returning home after their internships, they should be in a position to facilitate contacts between U.S. firms and NIS businesses, generating a receptive climate for future exports. Already successful U.S. /NIS partnerships resulting from the Defense Conversion program include Dresser/Mashzavod (Kazakstan), Raytheon/Ukrainian Ministry of Defense, R.G. Hansen/Kommunar (Ukraine), Senco/Soyuz/Electronprylad/Lance Marketing (Ukraine). General Electric/Viam/Rybinsk Motors (Russia), Pepe/Zenit (Kazakstan),, and Alliant Tech/Pavlograd Chemical Plant (Ukraine). HOW DOES THE SABIT DEFENSE CONVERSION PROGRAM ASSIST NIS TRAINEES? The Defense Conversion Program provides interns with two months of comprehensive training, consisting of two weeks of management training in D.C., followed by six weeks of hands-on exposure to U.S. companies currently converting their product mix to consumer goods. This training will enable the interns to further the conversion of their NIS defense enterprises from weapons production toward production of much-needed industrial and consumer goods. It will also help to improve their global competitiveness by gaining access to technologies, expertise, and contacts in the U.S. WHAT COSTS ARE COVERED BY THE PROGRAM? The SABIT Defense Conversion Program covers the majority of the costs involved in providing the training, including all airfare, housing insurance, and per diem. The Department of Commerce also screens all intern applications, referring only the top candidates to the U.S. host firms, and arranges all logistics of intern travel and training. WHAT IS EXPECTED OF U.S. HOST FIRMS? U.S. host firms commit to providing six weeks of management or appropriate commercially-oriented scientific training to the interns. Participating companies are also required to provide local transportation and interpreters while the interns are training with them. WHERE CAN I GET MORE INFORMATION? To receive a brochure and application kit for the SABIT Defense Conversion Program, please contact Sabit Coordinator; phone (202)482-3984. or tax (202) 482-5650. U.S. Department of Commerce July w^t. RDBD 5 - St. Petersburg DIRECTORY ENTERPRISE PROFILE AHKETA flflfl nPEflnPI/lflTHfl flnfl Toro, MTo6bi BK/iioMMTb Bauie npeflnpMATue b 6y,qyineM H3flam/M CnpaeoMHUKa Poccmmckom 06opohhom ripoMbiLUfieHHocTn, 3anonHi/iTe, noxa/iyi/icTa, HMxecneflyiOLMyio aHKeTy n HanpaBbTe ee b nocoribCTBo CLUA b MocKBe nnn b flenapTaMeHT KoMMepcnn CLUA: dpaKc: 230-21-01 Hobmhckmm 6y/ibBap, aom 15 nocoribCTBo CLUA ToproBoe ripeflCTaBHTenbCTBO dpaKc: 230-21-01 Department of Commerce Bureau of Export Administration Room 3878 14th & Constitution Ave. NW Washington, DC 20230 USA fax: 202-482-5650 HA3BAHME nPEflllPHflTI/lfl: ATlbTEPHATMBHblE HA3BAHl/1fl: AflPEC: HOMEP TEHEOOHA: SnEKTPOHHAfl nOHTA: OBLIGEE OE03PEHME: OCHOBHOE nPOM3BOflCTBO: KAKOMY BblBLUEMY MMHMCTEPCTBY nOflHHH^nOCb: HMCHO PABOHMX: PYKOBOflCTBO: COBCTBEHHOCTb: U.S. Department of Commerce RDBD 5 - St. Petersburg Jul\ l°°o OCHOBAHO: BOEHHBIE nPOHYKTM: TOBAPbl HAPOflHOrO IIOTPEEJIEHHfl: HIABHAH TEXHOJIOrPW, TJIABHOE OEOPyflOBAHHE. KOHBEPCHOHHBIE HPOrPAMMbL JIBrOTBI: ftOIIOJlHHTEJIbHAH BA2KHAH HH^OPMAUHE: U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg U.S. DEPARTMENT OF COMMERCE ORDER FORM SHIP TO ADDRESS CUSTOMER MASTER NUMBER (IF KNOWN) DATE ATTENTION/NAME ORGANIZATION DIVISION / ROOM NUMBER STREET ADDRESS CITY STATE ZIP CODE PROVINCE /TERRITORY INTERNATIONAL POSTAL CODE COUNTRY PHONE NUMBER ( ) CONTACT NAME FAX NUMBER INTERNET E-MAIL ADDRESS :tmod of payment □ VISA □ MasterCard □ American Express CREDIT CARD NUMBER EXPIRATION DATE CARDHOLDER'S NAME □ NTIS Deposit Account Number: □ Check / Money Order enclosed for $ (PAYABLE IN U.S. DOLLARS) SIGNATURE (REQUIRED TO VALIDATE ALL ORDERS) ORDER BY PHONE (euu*ate mm. t*c) 8:30 a.m. - 5:00 p.m. Eastern Time, M - F. Sales Desk: (703) 487-4650 TDD (hearing impaired only): (703) 487-4639 ORDER BY FAX 24 hours/7 days a week: (703) 321-8547 To verify receipt of fax: call (703) 487-4679 7:00 a.m. - 5:00 p.m., Eastern Time, M - F. ORDER BY MAIL National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 RUSH SERVICE (DO NOT UAL RUSH ORDERS) 1-800-553-NTIS. RUSH service available for additional fee. ONLINE ORDERING Order through the Internet 24 hours a day: orrJers@rteJed*orlc.gov If concerned about Internet security, you may regsler your credit card at NTIS. Simply call (703) 487-4682. FEDWORLD* Please call for connect information: (703) 487-4223. BILL ME (U.S., Canada, and Mexico only.) DO NOT USE THIS FORM. NTIS will gladly bill your order, for an additional fee of $750. A request to be billed must be on a purchase order or company letterhead. An authorizing signature, contact name. and telephone number should be included with the request Requests may be mailed or faxed. REFUND POLICY Although NTIS cannot accept returns for credit or refund, we wl gladly replace any item you requested if we made an error r filling your order, if the item was defective, or ff you received < n damaged condition. Just call our Customer Service Department at (703) 487-4660. NTIS HANDLING FEE Value of Order Handling Fee $10.00 or less ....$2.00 $10.01 -$50.00 $4.00 $50.01 -$100.00 $6.00 Over $100.00 $8 00 Add $2.00 to handling fee for orders sent outside the United States. Canada, and Mexico. PRODUCT SELECTION NTIS PRODUCT NUMBER INTERNAL CUSTOMER ROUTING (OPTIONAL) UP TO 8 CHARACTERS UNIT PRICE QUANTITY NTERNATONAi. AKMAK.FEE | SEE BELOW! TOTAL PRICE (ORDERING BY TITLE ALONE WILL DELAY YOUR ORDER) PAPER COPY MICRO- FICHE MAGNETIC TAPE* DISKETTE CD-ROM OTHER $ s $ $ $ $ $ $ $ $ $ $ $ $ 5 * CIRCLE REQUIREMENTS 3480 1600 6250 CARTRIDGE BPI BPI LABELING FORMAT STANDARD NONLABELED EBCDIC ASCII TOTAL A_ PLEASE NOTE Unless microfiche or other is specified, paper copy will be sent. HI S G iNDUNG fee PER ORDER $ Please call the Sales Desk at (703) 487-4650 for information on multiple copy discounts available for certain documents and price verification. Out-Of-Print Surcharae RAND TOTAL $ Effective 4/17/95, an out-of-print surcharge may apply to certain titles acquired by NTIS more than three years pnor to the current calendar year; please call to.verify price. International Airmail Fees Canada and Mexico add $4 per paper copy report; $1 per microfiche copy. Other countnes add $8 per paper copy report. $1 .25 per microfiche copy. (Paper copy reports and microfiche copies are shipped surface mail unless airmail is specified ) Prices arc subject to clunge M pm a > mniora BISNIS U.S. Department of Commerce International Trade Administration Room 7413 Washington, D.C. 20230 Telephone (202) 482-3100 • Facsimile (202) 482-2293 INTERNET: [email protected] MHHHCTepCTBO ToproBJiH CDIA Cjryat6a KoMMep^ecKOH HHtpopMaHHH no CHT hhjem IIAPTHEPOB Search for Partners MHHHCTepCTBO ToproBJiH CIIIA npHTJiamaeT Bac npHHflTL yiacTHe b nporpaMMe noHCKa napTHepoB. IIpefflnpHflTHfl h opraHH3an,HH, 3aHHTepecoBaHHLie b coTpyflHHHecTBe C aMepHKaHCKHMH (pHpMaMH (nMHOpT TOBapOB/o6opyflOBaHHfl, C03flaHHe COBMeCTHLDC npeflnpHHTHH, npeflCTaBHTejiBCKHe, flHCTpH6BK>TepcKHe ycjiyrn h «p), Moiyr npncjiaTb 3anojiHeHHyio amceTy no a^pecy: MocKBa 121099, Hobhhckhh 6yjiBBap 15, KoMMepnecKoe Biopo CIIIA, hjih ho tpaxcy (095) 230-21-01. Bu6opo*maji HHtpopMaijHfl 6yfleT ony6jiHKOHaHa b H3«aHHflx MnHHCTepcTBa ToproBJiH CDIA h pacnpocTpaHeHa cpe^H aMepKHcaHCKHX (pnpM. Ejich cpHpMM CIIIA npoflBJiT HHTepec k BameMy npefljioacemno, ohh CBaacyrcfl c BaMH HanpflMyio. I. 06maji HHtpopMaHHH o Banien opraHH3anHH. Ha3BaHHe Aflpec , TejietpoH (icon h HOMep) <I>aKc (koa, h HOMep) TejieKc U.S. Department of Commerce Julv 1*^ RDBD 5 - St. Petersburg 3jieKTpoHHafl noHTa PyKOBOflHTejit (hma H flOJIXHOCTt) CoTpyfflHHK flJIfl CBH3H C aMepHKaHCKHMH (pHpMaMH (hMH, flOJIXHOCTB HOMep TejietpoHa) KoJIHHeCTBO COTpyflHHKOB Ton o6pa30BaHH£ Bh^bi fleflTejibHocTH. Ha npoTflxeHHH KaKoro BpeMeHH Bbi hmh 3aHHMaeTecB? OnucaHHe BHeniHe3K0H0MHHecK0H flejrrejiBHOCTH. KaK flojiro oHa ocymecTBJraeTCH? C KaKHMH (pHpMaMH Bbi coTpyflHHHaeTe? <I>opMa co6cTBeHHocra (rocyflapcTBeHHaa, MyHHn;HnajiBHafl, aicnHOHepHaji, nacTHaa, TOO, flpyroe YHpeflHTejiH BaHKOBCKHe peKBH3HTBI (no B03MOXHOCTH, HOMep BaJIIOTHOrO CHeTa) ToflOBOH o6i>eM npoflaac U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg -3- II. Ecjih Bac HHTepecyeT HMnopT aMepmtaHCKHX TOBapoB, o6opyjj;oBaHELH TexHOJiorHH hjih ycjiyr, noacajiyHCTa, 3anojiHHTe btot pa3^eji amcera. IIoflpo6Ho omnimTe npojjyKn,HK>, KOTopyio Bbi xoTejra 6bi 3aKynHTb KojfflHecTBO. <I>HHaHCOBBie B03M02CH0CTH H tpOpMa OHJiaTbL. JJo Kaxoro ^HCJia moxho CHHTaTb jjeHCTBHTejibHMM Bam 3anpoc' III. Ecjih Bbi xothtc co3Jj;aTb coBMecTHoe npejjnpmrrae, cTaTb jj;HJiepoM/flHCTpH6i>ioTepoM hjih npejjJiaraeTe fflpyrne tpopMBi coTpyjjHHHecTBa c aMepaxaHCKHMH (pHpMaMH, noacajiyHCTa, 3anojiHHTe 3tot pa3Jj;eji amceTbi OnHnnrre nojj;po6Hee jjeirrejibHOCTb Bamen opraHH3an;HH h BbmycKaeMyio npoflyiujHio 06T>eM BLmycKaeMOH npojjyKH,HH_ Kto HBJLaeTCfl ochobhbimh noKynaTejMMH TosapoB hjih ycjiyr Bamero npejmpHH~nm YKaacHTe iuiomajj,b noMemeHHHH hjih 3eMJiH kotopmmh pacnojiaraeT Baraa cpupMa Hx Ha3Ha*ieHHe (npoH3Bojj;cTBeHHbie, ToproBbie, cmiajjcKHe h tjj .), MecTonojiojKcmie h cnoco6 BJiajj;eHHfl (co6cTBeHHocTb/apeim,a Ha KaxoH cpoK.') U.S. Department of Commerce July 1***H> RDBD 5 - St. Petersburg KaKHMH TexHOJiorHflMH h o6opyflOBaHHeM Bbi pacnojiaraeTe: OnHnnrre acejiaTejiBHBie (popMBi coTpyflHHHecTBa c aMepHKaHCKHMH (pnpMaMH (no B03M03CH0CTH, MaKCHMaJIBHO KOHKpeTHo) B neM 6y#eT 3aKJiK>*iaTBCJi Bame ynacTHe b 6ynymeM npoeKTe': Kaxoro yiacTHfl Bbi agjeTe ot HHOCTpaHHoro napTHepa (TexHOJiorafl, o6opyn;oBaHHe, (pHHaHcoBBie HHBecTHHHH, flpyroe)? Ecjih BaM Heo6xoflHMO aMepmcaHCKoe o6opyn;oBaHHe hjih TexHOJiorHH, onmnHTe hx noflpo6Hee Bbi MoaceTe npnjioacHTB k amceTe Banm peKJiaMHBie MaTepnajiBi, npe,n;nojiaraeMyio nporpaMMy coTpyjjHHHecTBa hjih flpyrne csefleHHfl, KOTOpBie Moiyr BBi3BaTB HHTepec y aMepHKaHCKHX 4>HpM. Cnacn6o 3a coTpyflHHHecTBo! U.S. Department of Commerce July 1 996 RDBD 5 - St. Petersburg ft U.S. GOVERNMENT PRINTING OFFICE:1996-415-149 TO RECEIVE FUTURE EDITIONS OF THE DIRECTORY. COMPLETE THE FOLLOWING: NAME: TITLE: COMPANY: ADDRESS: CITY, STATE, ZIP: TO MAKE CHANGES, SUGGESTIONS, OR CORRECTIONS, PLEASE MAIL TO THE ADDRESS ON THE BACK OF THIS FORM. ADVISE AND CONSENT: The Defense Conversion Subcommittee (DCS) needs your advice on an important issue. Please take the time to read the following, answer the question and mail back to us. Release of the Russian Defense Business Directory (RDBD) Mailing List: From time-to-time the DCS receives formal inquiries for copies of the RDBD mailing list. If your name is included on the mailing list, please let us know whether your name may be disclose to FOIA requesters. The only basis for withholding your name is that \ou would not customarily disclose to the public that you may be working with the Department of Commerce on business development or outreach involving business development in Russia and are on the mailing list. _ I would customarily make this information public and authorize the release of my name and address; or _ I would not customarily make this information public. U.S. Department of Commerce .Uilv W^ RDBD 5 - St. Petersburg FROM: Franklin J. Carvalho Economic Analysis Division Room 1089, HCHB U.S. Department of Commerce 14th & Constitution Ave, N.W. Washington, D.C. 20230 ADDDDBlDBS^^t. J
