Chemezov in Dispute Over Assets

Russian Technologies chief Sergei Chemezov has come into conflict with First Deputy Prime Minister Sergei Ivanov over the state corporation's plans to incorporate the government's defense-industry assets, Kommersant reported Tuesday.

In December, Chemezov asked for control over government stakes in almost 250 companies, of which 169 are in the strategic sector, the paper reported. Set up last year on the basis of state arms trader Rosoboronexport, the state corporation aims to boost the country's ailing heavy industry.

But Ivanov, who heads the government's Military-Industrial Commission, has approved another plan, to transfer defense assets to four wholly state-owned military holdings first, Kommersant reported, citing a Defense Ministry source.

Russian Technologies would then receive no more than a 75 percent stake in the four companies.

Despite repeated requests, Russian Technologies has refused to disclose the full list of state assets it is after or give an interview on the matter.

Beyond the defense industry, the state corporation is reportedly seeking assets in companies ranging from Mongolian coal-mining concerns to passenger airlines. Spokespeople for airline consortium AirUnion and Atlas, the company responsible for the EGAIS alcohol monitoring system, have confirmed that they are being targeted.

Commission officials came up with the plan in January, after hearing that Russian Technologies would control two-thirds of the firms fulfilling military orders, Kommersant reported, citing an unidentified commission source.

The commission's plan would mean it takes years to set up Russian Technologies, said Chemezov's first deputy, Boris Alyoshin, Kommersant reported.

Spokespeople for Russian Technologies and the Military-Industrial Commission refused to comment Tuesday.