1. A VARIETY OF CORPORATE STRUCTURES, COLLECTIVELY LABELLED "FINANCIAL-INDUSTRIAL GROUPS" OR FIGS, HAVE EMERGED AND COME TO PLAY CONSIDERABLE ROLES IN THE RUSSIAN ECONOMY. THE MONIKER "FIG" IS EMPLOYED BROADLY, BUT DESCRIBES THREE DISTINCT STRUCTURES: FINANCIAL HOLDING COMPANIES; INDUSTRIAL CONGLOMERATES; AMD STATE HOLDING COMPANIES. RUSSIAN FINANCIAL HOLDING COMPANIES ARE REMINISCENT OF CONTINENTAL EUROPEAN STRUCTURES. HOLDING COMPANIES DOMINATED BY FIGS CONTROLLED BY UNEXIM AND MENATEP BANKS WERE HIGHLY SUCCESSFUL IN THE LOANS-FOR-SHARES PROGRAM. THE INDUSTRIAL CONGLOMERATES ARE GENERALLY EITHER STRATEGIC PARTNERSHIPS OR DEFENSIVE STRUCTURES. STATE HOLDING COMPANIES ARE INTENDED TO PROMOTE INDUSTRIAL PRODUCTION, SUSTAIN THE DEFENSE-INDUSTRIAL SECTOR AND RECREATE TIES BETWEEN CIS ENTERPRISES, AMONG OTHER GOALS. THIS IS THE IMI VERSION OF REFTEL. END SUMMARY.
FIGS: A POPULAR STRUCTURE
2. FIGS ARE POPULAR TOPIC IN RUSSIA, BOTH IN STATEMENTS BY POLITICAL FIGURES AND THE PRESS. PRESIDENTIAL ECONOMIC ADVISOR LIVSHITS SAID IN HIS RECENT TWO-YEAR FORECAST THAT FIGS WILL PLAY A FAR LARGER ROLE BY 1997 AND THAT THEY WILL BE "AGGRESSIVE ON THE WORLD STAGE." REFORM ECONOMIST, ANDREY ILLARIONOV, AGREED ON THEIR IMPORTANCE BUT ADDED THAT FIGS WILL CONCENTRATE WEALTH IN A FEW HANDS, HAMPER EFFORTS TO BUILD A MORE OPEN AMD TRANSPARENT ECONOMY AND WILL "TEAR UP THE REMAINS OF THE NATIONAL FORTUNE." ILLARIONOV ADDED THAT BY THE TURN OF THE CENTURY "ONE OR TWO DOZEN GIGANTIC FIGS" AMD A HANDFUL OF PARASTATALS WILL DOMINATE THE ECONOMY. A RECENT "IZVESTIYA" ARTICLE TITLED "FINANCIAL OLIGARCHY IN RUSSIA" LABELED FIGS THE MECHANISM BY WHICH THE ELITE IS DIVIDING THE ECONOMIC PIE.
3. MANY VIEW THE GOR AS BEING DIVIDED OVER THE QUESTION OF FIGS, WITH SOME SEEING BOTH A PRO-FIG FACTION INTERESTED IN SUPPORTING HEAVY INDUSTRY AND MAINTAINING A RELATIVELY CLOSED ECONOMY, AND AN ANTI- FIG FACTION MORE INTERESTED IN BUILDING AN OPEN ECONOMY.
BUT FIG IS A MISNOMER FOR A VARIETY OF STRUCTURES
4. WHEN RUSSIANS DISCUSS FIGS, THEY TEND TO FOCUS ON THE DISTINCTION BETWEEN OFFICIALLY CONSTITUTED (DE JURE) FIGS AND DE FACTO FIGS, NOT REGISTERED WITH THE GOR. HOWEVER, DIFFERENCES IN ORIGIN, SECTOR, PURPOSE AND PATRON ARE PERHAPS MORE IMPORTANT. ONE WAY TO LOOK AT FIGS IS TO CLASSIFY THEM ACCORDING TO THE INSTITUTIONS BEHIND THEM. THUS, THEY CAN BE DIVIDED INTO THREE BROAD, OVERLAPPING RUBRICS: FINANCIAL HOLDING COMPANIES FOUNDED BY BANKS AMD INSURANCE COMPANIES; INDUSTRIAL CONGLOMERATES FOUNDED BY LARGE PRIVATIZED INDUSTRIAL CONCERNS (AUTO MANUFACTURERS, ET CETERA); AND STATE HOLDING COMPANIES, INITIATED BY THE FEDERAL AND REGIONAL GOVERNMENTS.
AVAILABLE IN TWO FLAVORS: DE FACTO AMD DE JURE FIGS
5. ACCORDING TO THE RUSSIAN STATE INDUSTRIAL COMMITTEE (ROSKOMPROM), RUSSIA HAS 27 DE JURE FIGS, ACCOUNTING FOR OVER TWO MILLION EMPLOYEES. ROSKOMPROM REPORTS THAT THESE 27 FIGS HAVE 446 MEMBER COMPANIES (INCLUDING 65 FINANCIAL INSTITUTIONS) AND HAD A PROJECTED TOTAL REVENUE IN 1995 OF R47 TRILLION (USD TEN BILLION). OVER 100 MORE FIGS HAVE APPLIED FOR REGISTRATION.
6. IN CONTRAST, DE FACTO FIGS, BROADLY DEFINED, CAM BE COUNTED IN THE THOUSANDS. THE MAJORITY OF SUCH DE FACTO FIGS, HOWEVER, REPRESENT ONLY A SMALL OR MEDIUM- SIZED INDUSTRIAL CONCERN AND ITS IN-HOUSE BANK. ALTHOUGH SUCH UNIONS OF OFTEN WEAK INDUSTRIAL CONCERNS WITH MINIMALLY CAPITALIZED AND IN-HOUSE BANKS AND INSURANCE COMPANIES ARE UBIQUITOUS AND COULD WEAKEN THE FINAMCIAL SYSTEM, THEY ARE NOT WHAT PROPONENTS OR OPPONENTS OF FIGS HERE ARE TALKING ABOUT. TO THE CONTRARY, IN THE DEBATE HERE FIG IMPLIES THE INTERACTION BETWEEN VERY LARGE BANKS AND VERY LARGE INDUSTRIAL ENTERPRISES.
LEGAL STATUS: FIRST BY DECREE AND NOW BY LAW
7. FIGS WERE FIRST AUTHORIZED UNDER PRESIDENT YELTSIN'S DECREE 2096 OF DECEMBER 1993. UNDER THE DECREE EACH FIG HAD TO BE APPROVED BY ROSKOMPROM, THE STATE PROPERTY COMMITTEE (GKI), THE STATE ANTIMONOPOLY COMMITTEE, THE REGIONAL ADMINISTRATION WHERE THE FIG WAS BASED, AMD THEN, FINALLY, THE INTERDEPARTMENTAL COMMISSION FOR THE PROMOTION OF FINANCIAL-INDUSTRIAL GROUPS. UNDER THE DECREE FIGS COULD RECEIVE A VARIETY OF BENEFITS, INCLUDING THE RIGHT TO RECEIVE "IN TRUST" FROM GKI STATE SHARE PACKETS IN PRIVATIZED ENTERPRISES. UNDER THE DECREE FIGS WERE ALSO ELIGIBLE FOR SPECIAL STATE INVESTMENT CREDITS AMD LOAN GUARANTEES, PREFERENTIAL RESERVE REQUIREMENTS FROM THE ENTRAL BANK OF RUSSIA, FAVORABLE ACCOUNTING TREATMENT AS TO THEIR VARIOUS HOLDINGS FOR TAX PURPOSES AND ACCELERATED AMORTIZATION.
8. IN DECEMBER OF 1995 PRESIDENT YELTSIN SIGNED A NEW LAW "ON FINANCIAL-INDUSTRIAL GROUPS," PASSED BY THE DUMA ON OCTOBER 27 AND THE FEDERATION COUNCIL ON NOVEMBER 15. THE LAW GRANTS MOST OF THE SAME BENEFITS TO FIGS AS DID THE DECREE. HOWEVER, THE LAW IS RELATIVELY VAGUE, PROVIDING MOSTLY A LIST OF BENEFITS. THUS, IT IS HARD TO JUDGE THE SIGNIFICANCE OF THE LAW OR DIFFERENCES FROM THE DECREE UNTIL IMPLEMENTING RULES AND REGULATIONS ARE APPROVED, WHICH COULD TAKE MANY MONTHS.
AS STRUCTURES VARY, SO DO THE INCENTIVES
9. PROPONENTS OF FIGS FROM THE FINANCIAL, INDUSTRIAL AND GOVERNMENT SPHERES HAVE DIFFERENT INCENTIVES FOR JOINING THE TREND, BUT ALL ARGUE THAT THEIR STRUCTURES ARE NEEDED TO BRING TOGETHER DOMESTIC FINANCIAL CAPITAL AND INDUSTRIAL MIGHT. ALL ASSERT THAT RUSSIA'S SHARP DOWNTURN IN INDUSTRIAL OUTPUT OVER THE LAST FIVE YEARS (ON THE ORDER OF 4O-50 PERCENT) WAS IN LARGE PART THE RESULT OF THE COLLAPSE IN INVESTMENT. IT IS ARGUED THAT RUSSIA'S BANKS, OPERATING THROUGH FIGS, ARE HIGHLY QUALIFIED TO REMEDY THIS PROBLEM. BEYOND THIS BROAD NATIONALIST AND INDUSTRIAL POLICY ARGUMENT, HOWEVER, THERE ARE ALMOST AS MANY MOTIVES FOR FORMING FIGS AS THERE ARE FIGS.
LO. RUSSIA'S FINANCIAL HOLDING COMPANIES SEEK TO GAIN EFFECTIVE CONTROL OVER THE LARGEST POSSIBLE ASSETS FOR MINIMUM CAPITAL EXPENDITURE. THE TRAMSFER OF ASSETS IN TRUST TO FIGS FROM GKI, EITHER UNDER THE FIG LAW OR THROUGH LOANS-FOR-SHARES, ARE ATTRACTIVE MEANS TO THIS END. USE OF CROSS-HOLDINGS AND INTERLOCKING DIRECTORATES, AS ARE USED IN MUCH OF EUROPE AND ASIA, ALSO ALLOW FOR EFFECTIVE CONTROL BASED UPON RELATIVELY SMALL PERCENTAGE SHAREHOLDINGS. THESE GROUPS ALSO SEE TAX ADVANTAGES IN THE ACCOUNTING RULES AVAILABLE TO FIGS, PARTICULARLY THE RIGHT OF FIGS TO CONSOLIDATE BALANCE SHEETS. THE BANKS BEHIND THESE HOLDING COMPANIES LOOK EXPLICITLY TO CONTINENTAL EUROPEAN STRUCTURES AS MODELS. THEY OFTEN DEFEND THEMSELVES IN SUCH TERMS ARGUING THAT JUST BECAUSE THIS IS NOT PART OF THE ANGLO-AMERICAN MODEL DOES NOT MEAN IT IS EITHER INEFFICIENT OR INCOMPATIBLE WITH A MODERN MARKET. THEY ALSO CLAIM TO BE WELL PLACED TO IMPROVE MANAGEMENT OF THE FIRMS THEY CONTROL.
11. RUSSIA'S INDUSTRIAL CONGLOMERATES RELY HEAVILY ON THE ARGUMENT THAT THEY WILL SAVE THE NATIONAL INDUSTRIAL BASE AND OFTEN CLAIM TO BE MODELED ON JAPANESE KEIRETSU OR THEIR KOREAN COUNTERPARTS. WHEREAS FINANCIAL HOLDING COMPANIES LOOK TO GAIN CONTROL OVER A DIVERSE SET OF ASSETS, INDUSTRIAL GROUPS TEND TO BE BASED IN ONE INDUSTRY OR EVEN ONE COMPANY. IN SOME CASES THEY FORM FIGS WITH OTHERS IN THEIR INDUSTRY IN ARRANGEMENTS AKIN TO STRATEGIC ALLIANCES, TO IMPROVE ECONOMIES OF SCALE AND SHARE RESEARCH AND DEVELOPMENT COSTS. IN OTHERS THEY USE THE PARENT COMPANY AND ITS LARGE CAPTIVE BANK AS VEHICLES TO CONTROL SUPPLIERS AND OTHER ATTRACTIVE COMPANIES. THE ARGUMENT THAT SUCH STRUCTURES CAN FURTHER INDUSTRIAL RESTRUCTURING MAY HAVE SOME MERIT. AN ADDITIONAL MOTIVE FOR FORMING DE JURE FIGS IN SUCH CASES IS AS A DEFENSIVE MEASURE AGAINST SALE TO OUTSIDERS BY GKI OF THE GOR'S RETAINED SHARE BLOCS IN THEIR OWN COMPANY. POTENTIAL TAX AND TARIFF BREAKS ARE ALSO ATTRACTIVE.
12. STATE HOLDING COMPANIES ARE THE LOUDEST IN ARGUING THAT THEY WILL SAVE RUSSIA'S INDUSTRIAL BASE, OFTEN ADDING THAT IN THE NAME OF NATIONAL SECURITY THEY WILL PROTECT RUSSIA'S DEFENSE-INDUSTRIAL SECTOR AMD ITS CLOSELY-LINKED SCIENCE AND TECHNOLOGY POTENTIAL. THESE ARE THE FIGS GOR PROPONENTS OF THE FIG MOVEMENT MOST VOCIFEROUSLY CHAMPION. AT THIS POINT TAX ADVANTAGES ARE PROBABLY LESS IMPORTANT TO THESE ENTERPRISES. TARIFF AND OTHER INCENTIVES TO REESTABLISHING LINKS WITH FORMER PARTNERS AND DIVISIONS IN OTHER COUNTRIES OF THE CIS ARE OFTEN HELD OUT AS THEIR BEST HOPE. THESE GROUPINGS SEE MULTIPLE APPEALS IN THE RIGHT OF FIGS TO RECEIVE STATE SHARE PACKETS IN TRUST. FIRST, GAINING CONTROL OVER VALUABLE ASSETS FREE OF CHARGE IS INHERENTLY APPEALING. AND SECOND, THIS ALLOWS SUCH ENTERPRISES TO AVOID HAVING OUTSIDE SHARE HOLDERS AND TO EFFECTIVELY PUT OFF FURTHER PRIVATIZATION. FURTHER, PROFITABLE MEMBERS OF SUCH FIGS CAN BE GRANTED INCENTIVES THROUGH FIGS TO SUPPORT LOSS-MAKERS, ALLOWING THEM TO AVOID DOWN-SIZING OR CLOSURE.
FIG SNAPSHOTS: THE BIG BOYS
13. IN THE AFTERMATH OF ITS SUCCESS IN TAKING EFFECTIVE CONTROL OF ASSETS WORTH BILLIONS OF DOLLARS THROUGH LOANS-FOR-SHARES, UNEXIMBANK AND IT8 ITERROS FIG IS A VERY LARGE CORPORATE PLAYER HERE. EVEN PRIOR TO THE ACQUISITION OF CONTROLLING INTERESTS IN NORILSK NIKEL AND SIDANKO OIL COMPANY, VIA LOANS-FOR-SHARES, AND ITS MERGER WITH THE MIKRODIN RETAIL-BASED FIG, ITERROS HAD 24 MEMBER COMPANIES EMPLOYING OVER 300,000, ACCORDING TO ROSKOMPROM. INTERROS BRINGS TOGETHER TWO OF RUSSIA'S LARGEST AND MOST SOPHISTICATED FINANCIAL INSTITUTIONS (UNEXIMBANK AND ITS SISTER INTERNATIONAL FINANCE COMPANY), THE WORLD'S LARGEST NICKEL MINE, A LARGE OIL COMPANY, CHEMICAL AND ALUMINUM PRODUCTION, CONTROL OF THE TROUBLED ZIL AUTO COMPANY, RETAIL OPERATIONS AND OTHER ASSETS. UNEXIM IS LOCKED IN A PUBLIC FIGHT WITH NORILSK OVER UNEXIM'S AUTHORITY TO CALL AN EXTRAORDINARY SHAREHOLDERS MEETING OF NORILSK, WITH THE APPARENT GOAL OF REPLACING CURRENT MANAGEMENT.
14. MENATEP AMD ITS EKSOKHIM FIG HAD 22 MEMBER FIRMS EMPLOYING 55,0O0 PRIOR TO ITS SUCCESS IN LOANS-FOR- SHARES IN TAKING CONTROL OF YUKOS AND SIBNEFT OIL COMPANIES, ACCORDING TO ROSKOMPROM. IN ADDITION TO THESE HOLDINGS, IT IS FOCUSED IN CHEMICALS AND CONSUMER GOODS.
15. THE LOSERS IN LOANS-FOR-SHARES WERE ALSO MOSTLY EITHER DE FACTO OR DE JURE FIGS. IN PARTICULAR, ROSSIYSKIY KREDIT (RUSKHIM FIG), INKOMBANK (NOSTA-TRUB- GAZ FIG) AND ALFA BAN K (A DE FACTO FIG) WERE THE REPEAT LOSERS. ACCORDING TO ROSKOMPROM, EACH OF THESE GROUPS CONTROLS 15 OR MORE ENTERPRISES EMPLOYING 50,000- LOO,00O. ANOTHER FINANCIAL HOLDING COMPANY OF NOTE IS VLADIMIR GUZINSKIY'S MOST-BANK GROUP.
FIG SNAPSHOTS: THE INDUSTRIALISTS
16. PROMINENT INDUSTRIAL CONGLOMERATE FIGS ARE BASED IN THE GAZ AUTO COMPANY AMD A JOINT PROJECT BETWEEN VAZ AUTO AND KAMAZ TRUCK COMPANY. THERE ARE ALSO INDUSTRIAL FIGS IN OTHER SECTORS. THE GAZ FIG IN NIZHNIY NOVGOROROD BRINGS TOGETHER GAZ AND ITS AVTO- BANK AND SEVERAL INSURANCE COMPANIES (KONTINET-POLIS, ROSGOSTRAS-POLIS AND KALLISTO-POLIS). TOGETHER THEY CONTROL 40 COMPANIES EMPLOYING 240,000, ACCORDING TO ROSKOMPROM. A NEAR-MAJORITY, HOWEVER, ARE AT GAZ, WHICH HAS 110,0OO WORKERS. THE CORE OF THE BUSINESS IS AUTOS AND LIGHT TRUCKS AND INCLUDES NOT ONLY GAZ, BUT MANY OF ITS SUPPLIERS, GIVING IT MORE RELIABLE SOURCES OF INPUTS. AMONG ITS OTHER PRODUCTS ARE REFRIGERATOR COMPONENTS, OIL AND GAS DRILLING AND TRANSPORT EQUIPMENT, GLASS AND CONSUMER PRODUCTS.
17. VOLZHKO-KAMSKAYA GROUP IS A STRATEGIC PARTNERSHIP OF VAZ AUTO (HEADED UNTIL LAST WEEK BY NEW FIRST DEPUTY PRIME MINISTER KADAMNIKOV) IN TOGLIATTI AMD KAMAZ TRUCK COMPANY IN NABEREZHNIYE CHELNY. THE FINANCIAL PARTNER IS THE SEMI-INDEPENDENT AVTO-VAZ BANK. ACCORDING TO ROSKOMPROM, THE COMBINED ENTITY HAS ONLY THESE THREE MEMBER FIRMS, BUT OVER 23O,00O EMPLOYEES. THE APPARENT PURPOSE OF THIS VENTURE IS TO GAIN ECONOMIES OF SCALE IN COMPONENTS PRODUCTION AND RESEARCH AND DEVELOPMENT. KAMAZ AND VAZ CONTINUE TO BE RUN AS ENTIRELY INDEPENDENT COMPANIES, BUT BOTH OWN SHARES IN AVTO-VAZ BANK.
FIG SNAPSHOTS: STATE HOLDING COMPANIES
18. STATE HOLDING COMPANIES ARE PROMOTED AS A MEANS TO BOOST INDUSTRIAL PRODUCTION, PROTECT EMPLOYMENT LEVELS, RE-ESTABLISH CIS TIES AND NURTURE THE DEFENSE AND SCIENCE AND TECHNOLOGY BASE. THEY RECEIVE ATTENTION FROM FIRST DEPUTY PM SOSKOVETS, GOSKOMOBORONPROM AND OTHER SUPPORTERS. SUCH ADVOCATES ARE PARTICULARLY INCLINED TO STRESS THE 80 PERCENT DECLINE IN PRODUCTION OVER THE LAST FIVE YEARS IN MANY DEFENSE BRANCHES AS REQUIRING REMEDIAL ACTION. MANY OF THESE GOR-DRIVEN FIGS OVERLAP IN ORIGIN AND FUNCTION WITH FINANCIAL HOLDING COMPANIES AMD INDUSTRIAL CONGLOMERATES. WHAT DISTINGUISHES THEM IS GOVERNMENT'S ROLE IN THEIR CREATION AND SUPPORT. IN TURN, THESE STRUCTURES CAN BE FURTHER DIVIDED INTO AT LEAST THREE OVERLAPPING SUB- GROUPS: INDUSTRY OR REGION-WIDE STATE HOLDING COMPANIES; DEFENSE SECTOR FIGS; AMD INTER-CIS FIGS.
GOVERNMENT-SPONSORED INDUSTRIAL GROUPS
19. ROSKOMPROM REPORTS THAT VOSTOCHNO-SIBIRSKAYA GROUP IN IRKUTSK HAS 25 ENTERPRISE HOLDINGS EMPLOYING ALMOST LLO,O00 IN OIL AND GAS EXTRACTION, HYDRO-ELECTRIC PRODUCTION, CHEMICALS, PACKING MATERIALS AND CONSUMER GOODS. THE FINANCIAL PARTICIPANTS IN THE GROUP ARE THE EAST-SIBERIAN COMMERCIAL BANK AND THE IRKUTSK FINANCIAL-INDUSTRIAL COMPANY (FINPROM). ANOTHER VERSION OF THIS MODEL IS TATNEFTKHIM INVESTMENT HOLDING COMPANY, OWNED BY THE TATARSTAN GOVERNMENT, WHICH IN TURN OWNS A SUBSTANTIAL PERCENTAGE OF EACH OF TATARSTAN'S PETROCHEMICAL PLANTS.
20. ROSMETAL, A FERROUS METALS GROUP, WHICH IS 51 PERCENT GOR OWNED, WAS SET UP RECENTLY BY THE STATE METALLURGY COMMITTEE. ROSMETAL HAS RECEIVED ALL OR MOST OF ITS HOLDINGS FROM THE GOR, SOME OF WHICH IT HAS BEGUN TO SELL OFF TO RAISE INVESTMENT CAPITAL. ALTHOUGH NOT YET REGISTERED WITH ROSKOMPROM, IT WAS DECLARED A FIG BY PRESIDENTIAL DECREE LAST NOVEMBER WITH THE GOAL OF INCREASING PRODUCTION AND PROVIDING COORDINATION IN THE IRON AND STEEL SECTOR. FIRST DEPUTY PM SOSKOVETS SAID ROSMETAL WAS CREATED "BECAUSE IT IS ESSENTIAL FOR THE STATE TO SUPPORT KEY INDUSTRIES IN THE TRANSITION ECONOMY."
GOVERNMENT-SPONSORED DEFENSE AND INTER-CIS SECTOR FIGS
21. ONE OF THE MORE PROMINENT DEFENSE SECTOR STATE HOLDING COMPANIES IS THE RUSSIAN AVIATION CONSORTIUM (ROSAVIACONSORTIUM), CREATED BY PRESIDENTIAL DECREE IN MAY OF 1995. ACCORDING TO PRESS REPORTS, THIS FIG, WHICH HAS NOT YET BEEN REGISTERED WITH ROSKOMPROM, BRINGS TOGETHER HOLDINGS IN TUPOLEV AIRCRAFT COMPANY, PERM MOTORS AND AVIADVIGATEL AIRCRAFT ENGINE COMPANIES, PROMSTROYBANK, AND LESSER HOLDINGS IN AEROFLOT AND OTHER AVIATION INDUSTRY FIRMS. IT HAS BEEN LAUDED BY PRIME MINISTER CHERNOMYRDIN AND FIRST DEPUTY PM SOSKOVETS. SOME OF THE PARTNERS HAVE SAID PUBLICLY THAT TO SALVAGE THE RUSSIAN AVIATION INDUSTRY IT WAS NECESSARY TO USE THE FIG STRUCTURE TO AVOID "OVER-HASTY PRIVATIZATION" OF RUSSIA'S AVIATION FIRMS AT DEPRESSED SHARE PRICES. OTHER AVIATION INDUSTRY ENTERPRISES, SUCH AS ILYUSHIN AND MAPO-MIG ARE ALSO LOOKING TO ENTER THE FIG SWEEPSTAKES, ALTHOUGH NEITHER HAS YET WON ROSKOMPROM APPROVAL. ANOTHER EXAMPLE OF A DEFENSE SECTOR FIG IS THE SKOROSTNOY FLOT, WHICH BRINGS TOGETHER 18 ENTERPRISES EMPLOYING 25,0OO IN THE SHIP- BUILDING AND DRY DOCK BUSINESS WITH GERMES FINANCIAL GROUP.
22. UNTIL RECENTLY INTER-CIS FIGS HAVE BEEN FEW IN NUMBER, BUT THAT COULD CHANGE. FIRST DEPUTY PM SOSKOVETS AND THE JUST-TRANSFERRED GOSKOMOBORONPROM CHAIRMAN GLUKIKH HAVE BEEN PARTICULARLY ACTIVE IN THIS AREA, MEETING REGULARLY WITH THEIR COUNTERPARTS IN KIEV, MINSK AND ALMATY. ALTHOUGH IT IS NOT CLEAR IT IS UP AND RUNNING, RUSSIA AND UKRAINE HAVE AGREED TO ESTABLISH A DEFENSE SECTOR FIG NAMED INTERNATIONAL AIRCRAFT ENGINES. SUBSTANTIAL PRESS ATTENTION HAS ALSO BEEN PAID TO BILATERAL AND MULTILATERAL DISCUSSION OF CREATING FIGS IN FERROUS AND NON-FERROUS METALLURGY AND OTHER SECTORS. MILES