Rostec State Corporation History and Development

Rostec State Corporation has a rich history that spans over two decades. Founded in 2007, Rostec was established to consolidate and restructure Russian defense industry enterprises.

The corporation's primary goal was to create a unified and efficient structure for the defense industry, which was previously fragmented and disorganized. This led to significant improvements in the industry's performance and competitiveness.

Rostec's first CEO, Sergei Chemezov, played a crucial role in shaping the corporation's strategy and direction. Under his leadership, Rostec expanded its portfolio of companies and began to invest heavily in research and development.

Today, Rostec is one of the largest state-owned corporations in Russia, with a diverse portfolio of companies across various industries, including defense, aerospace, and high-tech.

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Rostec was founded in 2007, a result of the consolidation of 680 defense industry enterprises.

The company's first chairman was Sergei Chemezov, who has been instrumental in shaping Rostec's vision and direction.

Rostec's early focus was on modernizing and restructuring the defense industry, which was largely stagnant at the time.

In 2017, Prime Minister Dmitry Medvedev approved the rules for allocating a subsidy of 7.3 billion rubles to Rostec.

This subsidy was part of the state program "Development of the pharmaceutical and medical industry" for 2013-2020.

The recipient of the subsidy was JSC "RZM-Technologies", a company that is part of the state corporation "Rostec."

The subsidy was to be transferred in the form of a property contribution, and in exchange, the company was obliged to submit two prototypes of a tomograph by 2020.

The company was also expected to provide two patents by 2022 and create 200 high-tech jobs by 2026, while also achieving exports of 6 billion rubles by that year.

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Rostec's corporate governance structure is designed to support the company's growth and efficiency. The corporation is led by Sergey Chemezov, who serves as the General Director (CEO).

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The management board plays a crucial role in overseeing the company's operations. It consists of 15 members, including First Deputy General Director Vladimir Artyakov and Deputy CEOs Nikolay Volobuev and Igor Zavyalov.

In 2015, Rostec introduced a new remuneration system for its top executives. The system aims to align executive compensation with the company's performance and market standards. The level of fixed wages for general directors was increased to the market average, and their share in total income was increased to 50%.

The new system also gives holdings more independence in regulating the remuneration of their subsidiary managers. This change is expected to improve the effectiveness of the company's management structure.

The management board is supported by various departments, including the Legal Department, headed by Alla Laletina, and the Bookkeeping and Fiscal Accounting department, headed by Natalya Borisova.

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In 2015, Rostec reformed its executive motivation scheme to better align with market practice.

The company increased the level of fixed wages for its general directors to the market average in the industrial sector.

The share of fixed wages in total income was raised from 15-30% to 50%, with the remaining amount paid as a target bonus based on key performance indicators (KPIs).

This new remuneration system is tailored to each holding's individual business tasks.

A dialogue on goals and a new structure of performance indicators was introduced to replace the directive form of setting standard financial KPIs for all holdings.

The new system takes into account both short-term tasks and projects that ensure the growth of the holding's capitalization in the medium and long term.

Holdings now have more independence in regulating the level of remuneration for their subsidiary managers.

The central office of the Corporation has only methodological support and budget control functions, transferring the authority to manage remuneration to the holding level.

This reform was a response to an audit conducted in 2014 that identified weaknesses and deviations from best practices in the current system.

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The management board plays a crucial role in the governance of Rostec Corporation. It's comprised of experienced professionals who oversee the company's operations and decision-making processes.

Sergey Chemezov serves as the General Director (CEO) of Rostec Corporation. His leadership is key to the company's success.

The management board has undergone significant changes in recent years. In 2015, Rostec Corporation reformed its executive motivation scheme, introducing a new remuneration system that's more aligned with market practice.

Here's a list of the key members of the management board:

The new remuneration system introduced in 2015 has given holdings more independence in regulating the level of remuneration for their managers. This change is expected to improve the overall performance of the company.

Rostec sold its stake in Yota Devices to a Chinese consortium led by Trinity World Management in 2018. This deal was initiated as part of an option agreement between Rostec and TWM.

The sale was completed on July 24, 2018. Rostec received cash and liquid securities worth over 3 billion rubles for its 25.1% stake in Yota Devices.

The payment was a significant sum, reflecting the value of Rostec's stake in the company.

Rostec State Corporation announced its intention to attract a private investor in the capital of the High-Precision Complexes research and production association in early November 2017.

The initiative to sell a 49% stake in the defense holding was approved by the supervisory board of the state corporation as of November 7, 2017.

The final decision on the possibility of selling the holding's shares will be made by the Government of the Russian Federation.

The sale of the shares is still being coordinated with all interested federal executive bodies, including special customers.

Rostec State Corporation aims to attract a private investor to the capital of the High-Precision Complexes research and production association.

The sale of a 49% stake in the defense holding is expected to bring in new investments and potentially boost the company's performance.

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Rostec companies employed about 450,000 people as of 2016, with a focus on labor responsibility among 21 dominant employers.

The corporation's labor policy was put to the test in Togliatti during the 2008-2009 economic crisis, where AvtoVAZ, a dominant employer, implemented a special employment program for dismissed workers, preventing public unrest.

Despite large-scale layoffs, the unemployment rate in Verkhnyaya Salda, Sverdlovsk Oblast, owned by VSMPO-AVISMA, remained less than 1% in 2013.

The average salary in Rostec exceeded the average salary in the country by 20.2% in 2016.

Rostec allocated 828 million rubles for the housing program and 546 million rubles for the sanatorium-resort services program in 2016.

The State Corporation also allocated 1 billion 228 million rubles for the programs of voluntary medical insurance of employees in 2016.

To develop human resources, Rostec implemented comprehensive projects to train employees, including compulsory training and additional professional development programs.

Rostec cooperates with over 200 universities and 50 vocational schools to attract human resources and provide targeted training of specialists.

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Rostec organizes its 700 enterprises into either directly controlled companies or clusters composed of holding companies, as of late 2016.

The corporations' structure is composed of 9 holding companies in the defense-industrial complex and 5 in civilian industries.

Organizations under Rostec are located in 60 subjects of the Russian Federation and supply products to over 70 countries.

The Scientific and Technical Council plays a vital role in the organization, comprising esteemed members with impressive credentials.

The Chairman of the Science and Engineering Board is Yury Koptev, a Doctor of Technical Sciences.

Some notable members include General Directors, such as Vladimir Verba and Anatoly Filachev, who lead companies like JSC Concern Vega and JSC Orion, respectively.

Valery Gheykin and Valery Kashin hold positions as Deputy General Directors at JSC ODK and JSC High-Precision Complexes, respectively, and are also Doctors of Technical Sciences.

The Council also includes experts with diverse backgrounds, like Nikolay Ivenev, an Advisor to the General Director of JSC High-Precision Complexes, and Aleksandr Komarov, Head of the Department of Coordination and R&D of JSC Russian Electronics.

Here is a list of some of the Council members:

Rostec is a Russian industrial corporation that's made up of around 700 organizations. These organizations have been grouped into 9 holding companies in the defense industry and 5 in civilian sectors.

Rostec's got a presence in 60 Russian regions and exports products to over 70 countries. They're a significant player in the global market.

Here are some of the key areas Rostec operates in:

• Automotive manufacturing

• Aeronautics

• Engine production

• Metallurgy

• Construction

• Optics

• Advanced materials

• Medical equipment

• Pharmaceuticals

• Industrial biotechnology

• Electronics

• Instrumentation

• IT and telecommunications

• Machine tool production

Rostec's main goals are to support the development and export of high-tech products, help Russian developers and manufacturers, and promote technological modernization.

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Rostec is a Russian industrial corporation that organizes its 700 enterprises into either directly controlled companies or clusters composed of holding companies.

As of late 2016, this development strategy was in place, aiming to streamline the organization of its vast network of companies.

The corporation has successfully formed 9 holding companies in the defense and industrial complex and 5 in the civilian sectors of industry.

Rostec's organizations are spread across 60 subjects of the Russian Federation and supply products to over 70 countries worldwide.

This massive network of companies is a testament to Rostec's commitment to innovative development and industrial growth.

With a focus on high-tech industries, Rostec's organization is designed to support the development, production, and export of high-tech products.

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Rostec is set to become the sole owner of several military enterprises by the end of 2017.

The state corporation Rostec will receive the military division of the Tractor Plants concern, which includes several key companies. These companies include the Kurganmashzavod, the Lipetsk plant of tracked tractors, the Volgograd machine-building company VgTZ, the Trans-Ural forge-foundry, and the Special Design Bureau of Mechanical Engineering (SKBM).

Rostec's financial performance has been impressive, with the company's revenue exceeding RUR960 billion in 2012, a significant increase from RUR817 billion the previous year. This growth can be attributed to the company's expanding export market, with revenues from exports to 70 countries globally exceeding RUR240 billion in 2012.

The company's financial indicators for 2015 show a strong performance, with consolidated revenue reaching $18.7 billion and consolidated net income totaling $1.62 billion. Total investments also increased to $2.1 billion, indicating a significant investment in the company's growth.

Here are some key financial indicators for Rostec:

By 2021, Rostec's revenue had grown to 2.06 trillion rubles, equivalent to approximately $28 billion.

Rostec's financial performance has been impressive, with revenue exceeding RUR960 billion in 2012, a significant increase from RUR817 billion the previous year.

The company's export revenue was also substantial, reaching RUR240 billion in 2012, with exports going to 70 countries globally.

Rostec's consolidated revenue in 2015 was $18.7 billion, a notable figure that highlights the company's financial strength.

Here are the main financial indicators for Rostec in 2015:

The company's revenue continued to grow, reaching 2.06 trillion rubles (US$ 28 billion) in 2021.

The new office for Rostec is a massive project that's going to cost a whopping 90 billion rubles. This is a significant increase from the initial estimate of 30-35 billion rubles.

The complex will include over 1 million square meters of office space, as well as housing, sports, and social facilities. This is a huge undertaking, and it's interesting to note that Rostec will occupy a significant part of the office space.

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The developer, Vitaly Maschinsky's Vi Holding, owns the plot of land where the complex will be built. This is not the first time that Maschinsky and Rostec's head, Sergei Chemezov, have worked together - they've had friendly relations since childhood.

The investment fund RDIF, created with the participation of the Russian-Chinese Investment Fund and the Arab Mubadala Development, is also involved in the project. It's likely that they'll be contributing to the massive investment needed to complete the complex.

Rostec is heavily involved in the electronics industry, with a focus on developing and producing advanced equipment and systems.

The company has a significant presence in the field, with several key players including Concern Avtomatika, Concern Radio-Electronic Technologies (KRET), RosEl, and Shvabe Holding.

These companies work on a range of projects, from secrecy communication equipment and systems to optical-electronic systems for both military and civilian purposes.

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Russia has a significant presence in the electronics industry, with several major players. Concern Avtomatika is the largest enterprise in the country concerned with information security and secrecy communication equipment.

Concern Avtomatika focuses on developing and producing protected information and tele-communication systems, as well as special automated control systems.

Concern Radio-Electronic Technologies (KRET) is another major player, specializing in military-spec radio-electronic, state identification, aviation, and radio-electronic equipment.

Rostec, the state corporation, has a strategy to invest in the electronics industry, with a focus on acquiring key assets for 368 billion rubles.

Here are some of the key areas Rostec plans to focus on: Data transfer and storagePhotonicsElement-component baseSecurity systemsMedical equipmentOptics These areas are expected to drive growth and revenue for the electronic cluster, with a predicted revenue of $3 trillion by 2025.

The electronic cluster is expected to have a significant share of civilian products, with a goal of exceeding 60% by 2025, corresponding to revenues of 1.5 trillion rubles.

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The machine tool cluster in the Vladimir region is a significant investment for Russia's economy. Rostec State Corporation announced the creation of the cluster on August 17, 2018.

The cluster is designed to develop and produce modern high-precision machines and processing centers. This aims to reduce the country's technological dependence on foreign industrial equipment.

Investments in the cluster will amount to about 460 million rubles until 2024. This is a substantial investment in the region's industrial development.

The cluster will be based on the Kovrovsky Electromechanical Plant (KEMZ). This will provide a solid foundation for the development and production of advanced machine tools.

Rostec Director General Sergei Chemezov stated that the cluster will help solve the problem of technological dependence on foreign equipment. This is a crucial step towards reducing Russia's reliance on foreign technology.

The creation of the machine tool cluster is a significant step towards Russia's industrial development. It will provide opportunities for the growth and development of the region's economy.

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Rostec is at the forefront of digitalization and IT-business, with a dedicated focus on harnessing technology to drive innovation.

Digitalization and IT-Business is a key area of focus for Rostec, with a main article dedicated to exploring this aspect of the company's operations.

Rostec's efforts in digitalization and IT-business aim to drive growth and efficiency across various industries, leveraging cutting-edge technologies to create new opportunities.

Digitalization and IT-Business is a crucial aspect of the modern world. It's an area where Rostec is actively involved, as seen in their main article on the topic.

Rostec's focus on digitalization and IT-business is a strategic move to stay ahead in the market. They're not just keeping up with the times, they're setting the pace.

Digitalization and IT-business are not just about technology, they're about transforming industries and creating new opportunities. It's a mindset shift that requires companies to be agile and adaptable.

Rostec's approach to digitalization and IT-business is centered around innovation and collaboration. They're working with experts and partners to develop cutting-edge solutions.

By embracing digitalization and IT-business, companies can increase efficiency, reduce costs, and improve customer satisfaction. It's a win-win situation for everyone involved.

Nikolai Nikiforov, ex-Minister of Communications, played a key role in establishing a drone traffic control center.

In July 2019, Rostec and Nikolai Nikiforov created a joint venture called the Center for the Organization of Movement of Unmanned Vehicles (DPC BTS).

This center was registered in Innopolis, a city known for its focus on innovation and technology.

Rostec State Corporation announced a partnership with the Singapore Institute of Technical Education (ITE) to create a Center for Vocational Training and Certification of Personnel for Innovative Industries.

The ITE specialists will contribute their expertise to the project over the next three years.

This collaboration aims to create a special institution in Russia that will provide vocational training and certification for personnel in innovative industries.

MegaFon, Rostelecom, and Rostec are teaming up to create a single infrastructure operator for 5G networks in Russia.

The joint project aims to reduce the cost of deploying the fifth generation network.

This move may limit competition in the market.

On November 20, 2018, the creation of the single infrastructure operator was announced.

The project is expected to make 5G networks more affordable for Russian consumers and businesses.

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Rostec State Corporation invested 3 billion rubles in the creation of a center for additive technologies in 2018.

The funds were allocated for the development of industrial 3D printing in Russia, a move that's expected to bring in significant revenue and profit.

According to Rostec estimates, the Center for Additive Technologies (CAT) could generate 13.2 billion rubles in revenue by 2027, with profit from sales exceeding 3.6 billion rubles.

The CAT will be based on the Moscow Machine-Building Enterprise named after V.V. Chernyshev, a part of the UEC, which is one of Rostec's holdings.

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The Government of the Russian Federation has ordered the transfer of 92.31% of the federally owned shares of the United Aircraft Corporation (UAC) to Rostec state corporation.

The decree was signed by Russian President Vladimir Putin on October 24, 2018, and the transfer is expected to be completed within 18 months. This consolidation of assets is expected to contribute to the development of domestic scientific and production potential in the field of aircraft production.

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Rostec has also signed an agreement with the Skolkovo Foundation to create a partner center on the territory of the Skolkovo innovation center, with a planned allocation of 300 million rubles by 2020 to finance the operations of the center.

The partner center is based on the Informhimmash enterprise, which is part of the Rostec Armament cluster, and is working on pilot projects of products in the civil sector in collaboration with Skolkovo.

The Russian government ordered the transfer of shares of seven joint-stock companies to Rostec state corporation in March 2016. This transfer was part of a broader effort to consolidate assets and ensure control over key technologies.

The companies involved in the transfer were Research Institute of Aviation Equipment, Kazan Instrument-Making Design Bureau, Russian Electronics, Krasnozavodsky Chemical Plant, Federal Research and Production Center "Nizhny Novgorod Scientific Research Instrument-Making Institute" Quartz, TsNII "CYCLONE", and Stavropol Radio Plant "Signal."

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The government aimed to prevent the erosion of Rostec's share in the authorized capital of these companies and maintain control over their activities. This decision was made in accordance with the presidential decree of July 10, 2008, which outlined the basic principles of Rostec's functioning.

The transfer of shares was expected to be completed within 12 months, as stated in the government's order. The goal of this consolidation was to ensure that Rostec had control over the key technologies and development programs of these organizations.

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Rostec State Corporation created a partner center in Skolkovo in 2017.

The agreement was signed on October 17, 2017, between Rostec and the Skolkovo Foundation.

The state corporation allocated 300 million rubles by 2020 to finance the operations of the center.

The partner center is based on the Informhimmash enterprise, which is part of the Rostec Armament cluster.

The cluster is already working on pilot projects of products in the civil sector with Skolkovo.

The POZIS strategy includes restructuring industrial capacities and developing high-tech civilian products through production diversification.

Rostec has taken significant steps to combat corruption within its ranks. The company's anti-corruption work is led by General Director Sergei Chemezov, who oversees efforts based on federal laws and presidential decrees.

In 2016, Rostec reported that its anti-corruption efforts prevented crimes worth approximately 1.8 billion rubles. This was achieved through collaboration with law enforcement agencies, including the FSB, Ministry of Internal Affairs, and Investigative Committee of Russia.

Rostec's Deputy General Director, Nikolai Volobuev, is responsible for organizing anti-corruption work. Under his leadership, 15 criminal cases were initiated against corrupt practices within the corporation and its organizations.

A hotline was launched in August 2016 to facilitate reporting of corruption, theft, and fraud. This tool has been effective in processing information and preventing offenses, with over 700 messages processed during its operation.

The hotline covers around 400 organizations and allows employees and third parties to report suspicious activity.