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Russians planning to merge all aircraft companies under single office

Russian Anti-Monopoly Authorities Approve Merger of Major Aircraft Makers


The press service of the Federal Anti-Monopoly Service of Russia reported on Monday, Aug. 28, that the authorities have approved the plans to create United Aircraft Building Corporation, which seeks to merge all of Russia’s major aircraft makers and to revive the domestic aircraft industry.

The United Aircraft Building Corporation will include Russia’s leading aircraft makers: the Sukhoi Aviation Holding Company (Moscow), the MiG Russian Plane Building Corporation (Moscow), the Ilyushin Aviation Company, the Tupolev Company (Moscow), the Kazan Aviation Production Association, the Komsomolsk-on-Amur Aviation Production Association, the Nizhny Novgorod Aircraft Building Plant Sokol, and the Novosibirsk Aviation Production Association.

In accordance with President Vladimir Putin’s decree “On Open Joint Stock Company United Aircraft Building Corporation,” the federal government will have a 75-percent stake in the new corporation.

All these companies were removed from the list of Russia’s strategic assets. The new company will be registered in September. It will be headed by Alexei Fedorov, General Director of the MiG Russian Plane Building Corporation.

The united corporation will have four business units, called Combat Aviation, Civil Aviation, Military Transport and Special Aviation, and Hubs and Components. The annual turnover of the corporation is expected to be between $8.2 billion and $8.5 billion.

The decision to set up such a company was made back in 1999, but words did not translate into action until 2004, when the first steps were made to implement the project. The creation of the single aircraft building corporation will allow Russia to produce up to 120 civil aircraft a year. Today, the country’s aircraft making industry makes only nine planes a year.

So does this mean the end of the OKBs?? The somewhat icon to the soviet aviation industry??

The report doesen't say how willing are the companies towards this Krelms idea but one might expect that at least Sukhoi would have change to make it on his own. Also I didn't spot the Irkuts factory on the list, so would this merge solve the proplem of two rivaling companies manufacturing the best export particle of the russian aviation industry, Su-30???


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Re: Russians planning to merge all aircraft companies under single office

Back in Feb 2006, it was reported that United aircraft corp would include Shkhoi, Mikoyan, Iluyushin, Irkut, Tupolev, and Yakovlev.

They're looking at using the merger as means of keeping Russian aviation industry viable and competitive on the world stage. The cost of developing new aircraft and the economy of scale today is very different from just a few decades ago.

Take for example the Swedish aircraft maker Saab, and French aircraft maker Dassault. Both have a glorious history of producing thousands of military aircraft. But in the future I think they'll eventually face the question of either merging into an European aircraft company to compete against the US, or end up assembling US-designed military aircraft.


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this is a nice piece of analysis that I found on the Russian defense industry and energy strategy.

RUSSIA/EAST ASIA: Growing presence?

SUBJECT: The evolution of Russia's East Asia policy.

SIGNIFICANCE: The importance of East Asia in Moscow's foreign
policy has risen along with its determination to use arms sales
and energy diplomacy to project its regional influence. This
policy reflects a more confident Russia, willing and able to
become more actively involved in a region that offers
opportunities for the realisation of Moscow's great power

ANALYSIS: Russia, in either its tsarist or its Soviet
incarnations, was rarely a full-fledged East Asian power, although
it traditionally maintained a regional presence. The internal
turmoil of the early post-Soviet years, combined with erratic and
incoherent foreign policy under former President Boris Yeltsin,
was symptomatic of Russia's 'declining power' status overall,
including in East Asia. A discernibly more East Asia-oriented
policy emerged in 1996, after Yevgeny Primakov took over as
foreign minister and later prime minister. Yet it was not until
recently that Moscow was able to add substance to its great power
rhetoric. This has been due to:

-- a growing economy buoyed by rising oil prices;

-- a growing interest on the part of some East Asian states to
diversify their political and economic relations, as well as
energy supplies;

-- a more active, coherent and pragmatic foreign policy
approach under President Vladimir Putin; and

-- the consolidation of strategic resources under state control
both for domestic and foreign policy purposes (see CISDB,
February 14, 2006, I.).

Eurasian identity. Policy statements towards East Asia emphasise
Russia's unique Eurasian identity, its geographical position and
geopolitical role. However, the Eurasian identity is frequently
used instrumentally, to secure recognition as a great power with a
right to participate in East Asian affairs. Moscow expects to be
admitted to regional structures, such as the Asia-Pacific Economic
Cooperation forum, the Association of South-east Asian Nations
(ASEAN) Regional Forum and the 'ASEAN plus three' East Asian
summits. Yet Russia's dual identity has hampered its
participation in EU Asia-Europe meetings, whose member states have
tended to regard Russia as neither European nor Asian.

Balanced policy. Russia's official policy calls for a balanced
approach to relations with both the East and the West, with equal
weight accorded to each. For much of the Yeltsin period,
relations with East Asia remained reactive, subject to relations
with the West. Overtures towards China, for example, were in part
based on Russia's dissatisfaction with the United States. NATO's
bombing of Yugoslavia in 1999, and Washington's plans to abrogate
the 1972 anti-ballistic missile treaty and build national and
theatre missile defence systems prompted concerted opposition from
Moscow and Beijing.

The outlook of much of the country's foreign policy elite remains
Western-centric, and relations with East Asia are still calculated
on the basis of progress made in Russia's relations with the West.
Nonetheless, growing segments of the elite now perceive East Asia
as significant in and of itself:

-- The military-industrial complex regards East Asia as an
important source of revenue.

-- Energy firms seek to establish themselves in the booming
East Asian market.

The Kremlin has encouraged the projection of Russia's influence
through arms and energy sales (see OADB, July 6, 2006, III.),
adding to the notion that the political elite is increasingly
willing to play an active role in East Asia. At the same time,
Moscow has occasionally used its energy policy towards East Asia
as a warning to Europe that it will acquire 'security of demand'
by supplying other regions.

Economic integration. Russia aspires to become part of East
Asia's dynamic economic growth. Economic integration is seen as
particularly important for the development of the Russian Far East
(RFE). In one initiative, Putin has advocated the use of Russia
as a 'land bridge' between Europe and Asia for the transit of
goods. This would help develop the RFE and strengthen Russia's
territorial integrity. Linking up the Trans-Siberian and
Trans-Korean railways could promote intra-Korean reconciliation
and enhance Russian influence on the peninsula. However, North
Korean suspicion and the underlying instability on the peninsula
have so far hampered implementation of the project.

Russia often understands economic integration with East Asia on
its own terms: reaping economic benefits without making sacrifices
in return:

-- Fortress mentality. The 'fortress mentality', still
prevalent among the federal and regional authorities, has
delayed the country's opening to foreign economic
activities. Russia's difficult investment climate has
undermined potentially significant investments from Japan
and South Korea, while fears of Chinese demographic
expansion have hampered the use of Asian labour for the
development of the depopulated RFE. Putin and other senior
officials have acknowledged the RFE's demographic problem,
but have until now failed to formulate a more inclusive
immigration policy, preferring instead to try to attract
ethnic Russians from the CIS (see CISDB, March 3, 2006, I.).

-- Projecting influence. Growing arms sales and energy
supplies will enhance Russia's economic role and influence
in East Asia, providing Moscow with some levers of influence
at the bilateral and regional level. Arms sales to China,
in particular, have been highly lucrative, though some
officials remain wary of a potential Chinese threat.
Moscow's drawn-out indecisiveness regarding the route of the
'Eastern pipeline' is in part an attempt to play off China
and Japan against each other, aimed at extracting maximum
political and economic benefits (see OADB, May 12, 2006,

Multipolarity. Russia's advocacy of a multipolar world order has
become an element of its foreign policy. The implicit aim of this
policy is to act in concert with other powers to oppose a
US-dominated 'unipolar' world order. In this, it converges with
China, which has similar aims. However, Russia's strategic
calculations of maintaining multipolarity in East Asia are
complicated by:

-- the rise of China;

-- the possibility of Japan's remilitarisation;

-- the ASEAN factor; and

-- potential conflicts on the Korean peninsula and over Taiwan.

Maintaining status quo. Although the regional balance of power
may be precarious, Moscow has an interest in preserving it.
Maintaining status quo would help Russia pursue its own internal
development and play the role of a regional balancer, mobilising
whatever influence it still has in East Asia. Moscow recognises
that it cannot guarantee regional security alone, but opposes
actions that could destabilise the existing regional balance and
prompt an arms race. For instance, it fears that the
strengthening of the US-Japanese alliance and plans to deploy
theatre missile defence systems could provoke China to build up
nuclear arms to the extent that would place Russia at a strategic

Strategic diversity. Russia's East Asia policy has been
predominantly Sino-centric, given China's long border with Russia,
its immense size and growing power. The Putin government
recognises the need to diversify Russia's strategic relations with
East Asian (and South-east Asian) states; and Japan (and India in
broader Asia) is seen as Russia's main partner to balance out
Russia's East Asia policy. However, the Kurils territorial
dispute will continue to mar relations, as demonstrated by the
flaring of tensions last month following the shooting of a
Japanese fisherman by Russian border guards.

CONCLUSION: Russia aspires to play a great power role in East
Asia, based not so much on its military might but on its growing
political and economic weight. Energy will become an increasingly
important foreign policy tool in the region, but its effective use
will depend on Russia's ability to unlock its vast East Siberian


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I saw this on numerous news off the wire. Not sure which sub this is though. Maybe others can provide updates.
By Sebastian Alison
Sept. 7 (Bloomberg) -- A fire on a Russian nuclear
submarine killed two members of the crew, Interfax said, citing
the information department of the country's Northern Fleet.
The fire, which broke out at about midnight last night,
posed no threat of nuclear pollution, Interfax said. The
emergency system to protect the ship's nuclear reactor had
worked and the submarine is returning to base, Interfax said.

bd popeye

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US and Canada scramble fighters to ward off Russian bombers:p

Thought the "Cold War" was over? Not to these guys! Please read!

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American, Canadian fighter jets launched to intercept Russian bombers near Alaska

By Mary Pemberton

4:24 p.m. September 29, 2006

ANCHORAGE, Alaska – American and Canadian fighter planes were launched to intercept a pair of Russian bombers after the bombers came close to Alaska while conducting an exercise, military officials said Friday.
The Russian aircraft on Thursday penetrated a 12-mile buffer zone near American airspace, according to the North American Aerospace Defense Command, or NORAD.

The bombers never violated U.S. or Canadian airspace, said Maj. Gen. Brett Cairns, NORAD director of operations.
Elmendorf Air Force Base in Anchorage sent four F-15s to meet the Russian aircraft, said Master Sgt. Tim Hoffman, a base information officer. Two F-15s intercepted the planes by making visual contact and verifying their identity.

The Russian planes then left the buffer zone, he said.

“We just carried out our typical mission,” Hoffman said. “They were in international airspace the whole time.”

CF-18 fighters also were launched from Canada, but did not intercept the Russian planes.

Lt. Gen. Igor Khvorov, commander of Russian long-range aviation, said the exercise involved 70 bombers, which test-fired 18 cruise missiles, the Russian news agency RIA Novosti reported.

“All the aircraft involved flew over neutral waters, and none of them came closer than 12 nautical miles to the maritime borders of any country,” Khvorov said.

What made the event somewhat unusual was that the Russian military had told the United States about the maneuvers ahead of time, Hoffman said, a sharp contrast to Cold War practices.

“They have become more open with the exercises,” he said.

Now the Russian version of the same story

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Russian Bombers Penetrate N. American Buffer Zone, Intercepted by U.S., Canadian Jet Fighters
Created: 30.09.2006 13:32 MSK (GMT +3), Updated: 14:53 MSK


A new U.S. push for greater Russian military openness collided with Cold War habits last week as Russian long-range bombers flew within 15 miles of U.S. airspace off Alaska, Denver Post website reported.

Fully-armed U.S. fighter jets responded, intercepting the two bombers.

The Russian Tu-95 bombers on a training exercise Thursday penetrated a North American buffer zone, said a statement Friday from Maj. Gen. Brett Cairns, operations chief for Colorado Springs-based North American Aerospace Defense Command.

But the bombers stayed within international airspace.

The U.S. response “was appropriate,” said Adm. Timothy Keating, commander of NORAD and U.S. Northern Command.

“We have a near-sacred responsibility to protect and defend the United States and Canada against any and all threats. We will not waver in this responsibility,” Keating said.

Four U.S. F-15 fighters, supported by two Canadian CF-18 fighters, found and intercepted the bombers. A U.S. pilot snapped a photo of the silvery Russian craft with a red star on its tail.

U.S forces, too, have been conducting training exercises over Alaska and Canada.

Russian authorities confirm that pilots of the bombers made visual contact with the U.S. pilots during recent test flights, but they claim there were also regions where the bombers flew unnoticed.

“During the flights, part of a test of long-range aircraft, the bombers’ crews saw NATO fighters, which were flying parallel to them in their airspace,” Russian Air Force spokesman Alexander Drobyshevsky told Interfax news agency.

“But there were also segments of flights, including close to Alaska, where our planes were flying unaccompanied,” he added.

The encounter happened despite a new initiative led by Keating to get Russian commanders to notify U.S. officials more fully about training missions.

Better communications are necessary “to develop better ways to understand each other’s concerns and common issues and to ensure safety of flight for aviators from both countries,” Keating said.

He hosted Russian Lt. Gen. Igor Khvorov, commander of Russia’s long-range bombers, in Colorado in December. Keating planned to visit Russia this fall to pursue this initiative, but that trip was postponed, NORAD spokesman Mike Kucharek said.

It was unclear whether Russian military officials notified U.S. officials directly of Thursday’s bomber flights. But U.S. officials knew about Russia’s training exercises from scanning media reports from Russia, Kucharek said.

Russian commanders had announced an exercise in Atlantic, Pacific and Arctic regions Sept. 26-30 involving 70 bombers and the test-firing of 18 cruise missiles.

NORAD forces charged with deterring, preventing and defeating threats to North America planned to practice maneuvers at the same time. Since Sept. 11, 2001, all NORAD patrols have been conducted using fully armed fighters.

During the Cold War, U.S.- Soviet confrontation led to close encounters of this sort, with fighters scrambled to intercept and eye opposing forces. But that’s been uncommon in recent years.

“They were flying a route. Obviously we were monitoring those flight routes,” Kucharek said. “We had to watch to see what they were doing.”

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Russian troops in Georgia ordered to shoot to kill

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Russia Orders Troops in Georgia “Shoot to Kill” if Provoked
Created: 01.10.2006 16:10 MSK (GMT +3), Updated: 16:10 MSK, 12 hours 41 minutes ago

Russia’s military bases in Georgia are on high alert, and troops have been ordered to “shoot to kill” if provoked, the forces commander quoted by RIA Novosti said Sunday.

The crisis in relations between the ex-Soviet neighbors erupted Wednesday when Georgian authorities arrested several Russian officers they accused of spying. Russia retains two bases in the country.

Major General Andrei Popov said, “in the case of a contingency situation or a provocation, troops are ready to counter them by any means necessary, including shooting to kill.”

Russia had agreed to withdraw its troops from the Akhalkalaki and Batumi bases in the South Caucasus country by 2008, but after the arrests, Popov warned that these plans may be put on hold.

The commander said that according to Russian law, military bases abroad are treated as Russian territory, and any attack on them by a foreign state is considered an act of aggression against Russia, which must be countered by any means necessary.

Russia has withdrawn most of its diplomats from the South Caucasus country’s capital following Georgian authorities’ arrests of five Russian servicemen on Wednesday on spying charges, which has sparked the worst diplomatic row between the countries in recent years.

Finn McCool

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Popeye, I would not be suprised if that situation turned into a real conflict in coming months or years. Georgia-Russia realtions have been deteriorating for a long time.

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Popeye, I would not be suprised if that situation turned into a real conflict in coming months or years. Georgia-Russia realtions have been deteriorating for a long time.

Yes Finn you are correct. I've been reading quite a bit on MOSNEWS about the confrontation between the two countries. Russia has gone so far as to seize Georgian property in Russia. Russians are protesting Georgian presence in Russia. And alligations of spying. It has been and is getting nasty.

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Finn McCool

Registered Member
Russians are protesting Georgian presence in Russia.

Sure its not the other way around? I didn't think there was a Georgian presence in Russia. But there is a Russian military presence in Georgia, obviously protecting the seperatist enclaves of Abkhazia and South Ossetia.


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Sure its not the other way around? I didn't think there was a Georgian presence in Russia. But there is a Russian military presence in Georgia, obviously protecting the seperatist enclaves of Abkhazia and South Ossetia.
The Russians resent all Caucasians peoples, Christian & Muslim alike, not just Georgians- Azerbaidzanis, Chechens, Dagestanis, Circassians, etc.- they were living better even in the Soviet times, many by selling flowers in the dead of winter in Moscow & other cities. Now there are many organized crime groups all across Russia contolling a lot of businesses.
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The reason all this going on is geopolitical: there is a lot of oil & pipelines in the area, plus the region is between the Black & Caspian Seas - the only 2 warm seas that are close to the European Russia. Should this area be lost, Russia itself may disintegrate sooner along regional/ethnic/religious lines.
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