Rostec

Rostec

Type	non-profit organization (Russian state corporation)
Founded	2007
Founder	Russian Federation (by a federal law)
Headquarters	Moscow, Russia
Key people	Sergey Chemezov (CEO)
Revenue	US$ 16.5 billion  (2012)
Owner	wholly owned by the Russian Federation as "State corporation"
Number of employees	900,000 (consolidated)
Divisions	Kalashnikov Concern (51%)
Subsidiaries	see below
Website	rostec.ru

Rostec (Russian: Ростех - Rostekh), formerly Rostekhnologii (Russian: Ростехнологии) is a Russian state holding company that can be characterized as a National Wealth Fund established in late 2007 to promote development, production and export of hi-tech industrial products for civil and defense sectors. It brings together 663 entities which form 13 holding companies. Eight holding companies operate in the defense-industry complex and five of them are involved in civil sectors. Rostec’s organizations are located in 60 constituents of the Russian Federation and supply goods to over 70 countries worldwide.

Rostekhnologii was founded in 2007 as so called "state corporation", a very special type of legal entity in Russia. The state corporation is established by equity contribution made by the Russian Federation. The organization is headed by Sergey Chemezov. Its headquarters are located in Moscow.

Full name in the Russian language is Государственная корпорация по содействию разработке, производству и экспорту высокотехнологичной промышленной продукции «Ростехнологии». Short name in the Russian language is Госкорпорация Ростех. Full name in the English language is State Corporation for Assistance to Development, Production and Export of Advanced Technology Industrial Product «Russian Technologies» (Rostec). Short name in the English language is State Corporation Rostec. Rostec was known as Rostekhnologii until December 2012.

On November 23, 2007, President Vladimir Putin endorsed the federal law to establish Rostekhnologii, a state corporation, passed by the State Duma on November 9. The state contributed 437 entities to the corporation’s capital. Their total loss was RUR630 billion; 30% of such enterprises were in pre-crisis and crisis condition, 28 entities in bankruptcy proceedings, 17 had no business operations, and 27 had lost part of their assets or faced a material risk of such loss. Executives of some companies included in Rostec were in conflict with each other. At the time Rosoboronprom, a company eventually merged with Rostechnologii, acquired the controlling interest in VSMPO-AVISMA in 2006, the on-going conflict between the shareholders exposed it to crisis. In October 2005, the Federal Financial Market Service (FFMS) suspended trades in common shares on the RTS Exchange and MICEX.