Source Pravda.Ru

Government explains situation with MiG corporation

The state is not going to sell shares of the future joint-stock company of the Russian aircraft-building corporation MiG, head of the government information department Alexei Gorshkov told journalists on Friday.

"The sale of the stocks of the future company is not at issue, he said. The MiG group of companies will be created by securing 100 per cent of its shares in the federal property approximately in 2005, Gorshkov explained.

The day before this defence enterprise was excluded from the list of federal state unitary enterprises of the defence industry whose privatization was prohibited. On Thursday Russian Prime Minister Mikhail Kasyanov signed a decree that approved the programme of privatizing federal property in 2004 and major directions of privatization till 2006.

In compliance with the federal programme of reforming the defence industry in 2002-2006, large integrated structures will be created, Gorshkov said.

"Consequently, by the end of the year the joint-stock group of companies Sukhoi will be created, and similarly, in compliance with the federal programme, the MiG corporation will be set up", he pointed out.

The corporation will comprise the aircraft-building company MiG and some other enterprises of the industry.

"To create a holding we need to fund MiG, and this was the reason for including the company in the next year's privatization programme," Gorshkov concluded.

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