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Putin signs decree setting up United Aircraft Building Corporation

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MOSCOW, February 21 (RIA Novosti) - Russian President Vladimir Putin signed a resolution Tuesday to form a consolidated aircraft-building corporation, the Kremlin press service said.

The United Aircraft-Building Corporation (UABC) "is being established to maintain the scientific-industrial potential of Russia's aircraft manufacturing complex, and to ensure the country's security and defense capabilities," the press service said.

Documents on establishing a united aircraft manufacturing company were signed February 6 by Prime Minister Mikhail Fradkov.

In signing the resolution, the president approved a government proposal stipulating that the state would own at least 75% of the corporation's equity.

The resolution also approves the government proposal to transform two state-owned majors in the field, the MiG Aircraft Corporation and the Gorbunov Kazan Aircraft Production Association, into joint-stock companies, in which 100% of shares will be held by the state, and will subsequently form the state's contribution to UABC, as payment by the government for additional stock issues made by the company to increase its equity capital.

UABC is intended to be a majority state-owned corporation consolidating aircraft-building companies and state assets engaged in the manufacture, design, and sale of military, non-military, transport and unmanned aircraft.

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