Publication: Monitor Volume: 2 Issue: 27

The chairman of the Duma Security Committee has called for a reexamination of government policy vis-a-vis the privatization of defense firms and other large enterprises of strategic significance. Viktor Ilyukhin also called for formulation of a national program aimed at identifying these strategic enterprises and ensuring that they do not fall into private hands, Russian or foreign. He accused foreign firms of trying to buy up, either directly or through proxies, Russian defense enterprises. Ilyukhin also claimed to be aware of instances in which foreign or Russian firms have acquired important Russian enterprises, only to close them down in order to use the space for other purposes. (5) Ilyukhin’s remarks reflect the displeasure of many enterprise managers in the defense industrial sector over plans for privatization. They also dovetail with the efforts of Russian first deputy prime minister Oleg Soskovets and others in the government to increase state support for defense enterprises.

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