MeduzaFri, 08 Dec 2017 00:00 UTC
© Maksim Blinov / Sputnik
The Russian government has reportedly drafted a
list of 126 companies (primarily enterprises owned or operated by the state) that will be permitted to reach state procurement deals in secret. Beginning on December 15, these companies' contracts with the government will move to Russia's platform for defense orders, where they won't need to disclose their clients.
According to
Kommersant, the measure is
most likely designed to counter future U.S. sanctions against persons and businesses with ties to the Russian government.
- In late November, Dmitry Medvedev signed a resolution allowing state companies to wait until July 1, 2018, to publish procurement data about suppliers and subcontractors. Sources close to Rosneft and Roscosmos told the newspaper Vedomosti that state companies don't want to disclose data about their contractors because it would reveal how they are circumventing Western sanctions, particularly when it comes to technologies that would be difficult to replace.
- In October 2017, the Trump administration published a list of Russian-connected entities, saying it would impose sanctions on U.S. individuals and companies that did "significant" business with them. The list includes several suppliers and contractors for Russia's Federal Security Service and Foreign Intelligence Service.
Comment: Dozens of Russian defense companies on list of potential new US sanction targets
The list includes over thirty Russian defense sector entities, starting with the state-owned Russian Technologies State Corporation, Rostec. The titan of Russia's civil and military production, Rostec incorporates roughly 700 entities which form 14 holding companies which manufacture anything from AvtoVAZ cars to Kamaz trucks.
Rostec also controls Rosoboronexport, the sole Russian state intermediary agency responsible for the import and export of defense arms which is also on the list. Some of the other companies working with Rostec, such as the world-famous AK-47 producer Kalashnikov Concern JSC, is a potential target as well.
One of the oldest and largest shipyards in Russia, Admiralty Shipyard, is also a possible target. The company, located in St. Petersburg, primarily deals with submarines design, development, and construction. Dolgoprudny Research Production JSC which manufactures products such as anti-aircraft missiles, launchers and rockets has also been added to the list.
Mytishchinski Mashinostroitelny Zavod which handles naval, aircraft, anti aircraft, tank, coast and field artillery products also shared the same fate. Russian aviation industry leaders Sukhoi Aviation, Tupolev JSC and United Aircraft Corporation were also singled out by the State Department.
Comment: Dozens of Russian defense companies on list of potential new US sanction targets