New construction company created by Russian Defense Ministry

RUSSIA / FSU POLITICS - In Brief 24 Oct 2019 by Alex Teddy
On October 18 President Putin signed a decree establishing a construction corporation as part of the Ministry of Defense. The aim of this is to allow military construction to be conducted on a not for profit basis. Businesses might overcharge and in this and other ways undermine national security. This company will be the only one of its kind in the country. The corporation shall not be divided into a subsidiary company for each of the military districts plus one for the Northern Fleet. There will be three companies specializing in building roads, ports and nuclear weapons establishments and two design institutes. The company will be tasked with acquiring the land needed for a site designing and executing construction projects. The budget for this corporation from now until 2027 is USD 15.7 billion. There is a serious possibility that the president will establish another state owned enterprise which the Ministry of Energy is lobbying for. Such a company would be a co-investor in major LNG projects. This partly depends on how the military construction corporation pans out.

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