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Summary

The Russian companies operating in the sector of heavy-machinery construction for agriculture, railways, industrial needs and others have the following common features (in terms of historical background, state ownership and involvement into the operations, internationalization processes):

  1. Almost all of them have been founded on the basis of plants and manufactures existed in the Soviet period. At that time all these enterprises were obviously fully state-owned and got a sound governmental support; their policy was dictated by the State as well.

  2. Almost all of them nowadays actively trade and cooperate with the CIS countries, which is also explained by their Soviet past. Some of the companies examined export their production to Asian and Latin American countries due to the political connections established years ago.

  3. The majority of these companies operate in the strategically important fields for the Russian state. Consequently, they get a support from the Russian government. The purpose of these measures is to prevent import production raise on the Russian market:

    1. Subsidies of the credit percentage rates (light industry, automobile construction, transport machinery construction, agricultural machinery construction, oil and gas equipment engineering and construction, aircraft manufactury);

    2. Budgetary financing for the promising R&D projects;

    3. Local market protection from the import production pressure (special taxation policy and high customs tariffs for the foreign producers);

    4. Provision of state warrantee for credits for system-formative and strategically important enterprises67

  4. Many of the companies are now privately controlled holdings, unifying many production facilities.

  5. The most widespread entry mode in this companies’ category – export; joint ventures exist but are much less represented.

1JSC Information Satellite Systems - Reshetnev Company http://www.iss-reshetnev.com/?cid=international_cooperation

2 2011 Annual Report / JSC “Academician M.F. Reshetnev “Information Satellite Systems“. – Zheleznogorsk, 2012

3 Barabanov M. 2011. On guard of the whole sky. Odnako, August 16. http://www.odnako.org/magazine/material/show_12373/

4 Defense News Top 100 for 2012

http://special.defensenews.com/top-100/charts/rank_2011.php

5 2011 Annual Report / JSC Almaz Antey. – Moscow, 2012

6 2008 Annual Report / Atomenergomash – Moscow, 2009

7 2011 Annual Report / Atomenergomash – Moscow, 2012

8 2011 Annual Report / Atomenergomash – Moscow, 2012

9 Center for ground-based space infrastructure facilities operation / http://www.tsenki.com

10 MIC NPO Mashinostroyeniya http://www.npomash.ru

11 2011 Annual Report / Oboronprom – Moscow, 2012

12 Oboronprom. http://www.oboronprom.ru/en/

13 RSC Energia http://www.energia.ru/

14 2011 Annual Report / JSC Tactical Missiles Corporation – Moscow, 2012

15 JSC Tactical Missiles Corporation http://eng.ktrv.ru

16 TsSKB-Progress. http://www.samspace.ru

17 Oboronprom. http://www.oboronprom.ru/en/

18Renault corporate site, http://www.renault.ru/about-renault/legal.jsp

19 Avtotor corporate site, http://www.avtotor.ru/index.php?option=com_content&view=article&id=269&Itemid=646

20 Avtovaz corporate site, http://www.avtovaz.ru/index.php?id=141

21 News portal “Voditel’ Peterburga”, http://spbvoditel.ru/2012/04/09/016/

22 Ford corporate site, http://www.ford.ru/AboutFord/FordCompany

23 Ford corporate site, http://www.ford.ru/AboutFord/FordCompany

24 GAZ Group corporate site, http://gazgroup.ru/data/files/Presentation_GAZ_Group%281%29.pdf

25 GAZ Group corporate site, http://eng.gazgroup.ru/structure/history/

26 GM-avtovaz corporate site, http://www.gm-avtovaz.ru/en/company/chevrolet_niva/

27 Hyundai corporate site, http://www.hyundai.com/ru/ru/AboutUs/Factory/AboutHMMR/HMMR/index.html

28 KAMAZ corporate site, http://www.kamaz.ru/en/company/about/

29 ibid

30 KAMAZ corporate site, http://www.kamaz.ru/en/company/about/

31 Nissan corporate site, http://www.nissan.ru/RU/ru/inside-nissan/corporate/in-russia.html

32 PCMA Rus corporate site, http://pcmarus.ru/

33 Sollers Group corporate site, http://www.sollers-auto.com/en/about/

34 Sollers Group corporate site, http://www.sollers-auto.com/en/about/strategy/

35 Volkswagen Financial Service Rus corporate site, http://vwfs.ru/pub.html?docid=630&sort=1

36 Volkswagen Financial Service Rus corporate site, http://vwfs.ru/pub.html?docid=627

37 http://www.altaivagon.ru/

38 http://expert.ru/ratings/table_381256/

39 Company’s financial statement

40 http://www.altairegion22.ru/region_news/49962.html

41 http://www.borets-compressor.ru/

42 Company’s financial statement

43 http://www.electroshield.ru/company/

44 http://vninform.ru/article/53095.html; http://www.vkonline.ru/news/152787/20120125/v-sovet-direktorov-elektroshita-mogut-vojti-4-predstavitelya-rosimushestva.html

45 Type of contracts in the construction industry: under this condition the contractor has to provide with Engineering, Procurement and Construction services.

46 http://grouphms.com/about_company/strategy.php

47 http://www.grouphms.ru/about_company/history.php

48 Company’s financial statement

49 http://www.vsluh.ru/news/economics/235444

50 http://www.irkut.com/en/

51 http://www.skrin.ru/issuers/irkt/all_data/manage/directors

52 http://www.kommersant.ru/doc/1782130/print

53 http://kamkabel.ru/

54 http://kzgroup.ru/rus/s/162/nowosti.html?page=1

55 http://kzgroup.ru/rus/s/79/o_kompanii.html

56 Supportive measures are listed in the conclusive part below

57 http://mergers.ru/news/

58 http://www.tplants.com/en/company/

59 http://mergers.ru/news/

60 http://www.i-mash.ru/news/nov_otrasl/31777-koncern-traktornye-zavody-bez-podderzhki.html

61 http://www.omz.ru/eng/overview/profile/

62 http://www.power-m.ru/company/

63 http://www.interros.ru/invest/

64 http://www.sukhoi.org/company/history/okb/

65 http://www.tmholding.ru/en/

66 http://www.forbes.ru/profile/transmashholding

67 http://www.economy.gov.ru/minec/references/faq/doc20100201_1

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