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Sep. 17, 2008
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Defense Ministry Withdraws Assets to Rear
President Dmitry Medvedev inked yesterday the decree on establishment of Oboronservis that will consolidate all business enterprises of the RF Defense Ministry. This move of the president is in line with the policy of Defense Minister Anatoly Serdyukov that endeavors to get rid of all non-core assets.
By yesterday’s decree, President Dmitry Medvedev ordered to set up Oboronservis that will unite enterprises of the RF Defense Ministry “which business activities may be additionally executed in the interests of wider circle of customers.” Indeed, the spectrum of their business is very wide, ranging from maintenance of aircraft and armaments to construction, hotel services, agriculture and publishing activities.

The total worth of the assets to be transferred to Oboronservis is “the military secret,” the assets will be evaluated not by the balance but rather by the market cost, said a representative of Defense Ministry.

Creation of Oboronservis matches the policy of Defense Minister Anatoly Serdyukov, whose target is the ministry’s restructuring and disposal of non-core assets. In March of 2008, the minister ordered to elaborate proposals for making civilians nearly 200,000 medical doctors, journalists, lawyers and base area servicemen. In April, Defense Ministry held the first auction for disposal of military assets and earned 3.745 billion ruble through it.

It is known that the civil manager from Serdyukov’s team will head the new venture. Once incorporated, Oboronservis will be added to the list of strategic enterprises and strategic joint stock companies.
www.kommersant.com

All the Article in Russian as of Sep. 17, 2008

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