The first stage of privatisation of Russian military industry

Measuring defense conversion in Russian industry

“…Cooper (1991a) estimated that about 400 companies within the USSR MIC in the late 1980s were "strictly civilian" (with zero military production), 1,000-1,100 were "strictly military" (with military production greater or equal to half of their output), and 500-600 companies had "mixed production" (with less than half of output being military). Those numbers correspond fairly closely to those reported by Sanchez-Andres (1995) and also, as we shall show, to those enterprises subordinated to the GKOP in our sample. Strictly military are 48 percent of the MIC companies as reported by SanchezAndres (in our sample this figure is 47.3), 27 percent (29.3 in our sample) are strictly civilian, and 25 percent (23.3 in our sample) have mixed production.…”

“…Estimates of the numbers employed in the Soviet MIC range from 6 million to as many as 12 million (Cooper, 1991b), if those in research establishments and services related to military production are taken into account. Other estimates of the total number of employees are 7.6 million (Despres, 1995), 7.5 million (Chapman and Wittneben, 1992), and 9 million (Ponomarev et al, 1993;Sanchez-Andres, 1995; who appear to be relying upon the same source, although they do not cite one another). If one considers only manufacturing of military products, the only estimate found gives a number of 4.7 to 5 million employees in the USSR (Cooper, 1991b).…”

“…Analysts of the Russian military-industrial complex (MIC) 1 have either combined the bits of information derivable from official reports to try to form an overall picture (e.g. Brunat and Malakhov, 1998;Cooper, 1991aCooper, , 1991bDespres, 1995;Gaddy, 1994;Sapir, 1994;Sanchez-Andres, 1995); most of the published literature in Russian language), or they have been limited to detailed case studies of just a few firms, eschewing any attempt to measure the sector as a whole (e.g. Bernstein, 1994;McFaul and Perlmutter, 1995;Brunat and Malakhov, 1998).…”

Arms exports and restructuring in the Russian defence industry

“…During this period, however, economic policy on weapons exports changed. From 1992 to 1997 the Russian defence industry was run by an administrative structure that was directly inherited from Soviet institutions, 18 and during these years its administrative status was steadily raised until it became a ministry (Minoboronprom) in 1996. In March 1997, however, this ministry was wound up and its responsibilities taken over by the Ministry of Economic Affairs.…”