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U.S.-BASED PRIVATIZATION TEAM SIGNS CONTRACTS TO CONVERT RUSSIAN DEFENSE COMPANIES

 U.S.-BASED PRIVATIZATION TEAM SIGNS CONTRACTS
 TO CONVERT RUSSIAN DEFENSE COMPANIES
 WASHINGTON, June 17 /PRNewswire/ -- As a result of initiatives taken by the Russian Federation Government to introduce free market reforms, a U.S.-based consortium called the "Privatization Team" has signed contracts with two major Russian military defense companies to assist in completing large-scale conversions to private enterprise.
 The privatizing efforts in Russia, more proof that the Cold War is finally over, are being undertaken with the assistance and approval of Anatoli Chubais, chairman of the Russian Committee on State Property.
 When completed, they will enable Russian companies -- VYMPEL Corporation (developer of Russia's "Star Wars" technology) and the Mil Helicopter Design Bureau -- to aggressively compete with similar businesses which have been able to diversify their interests in markets throughout the world.
 A company of more than 65,000 employees, VYMPEL is the only Russian defense firm which has been recognized as a multinational company by the Commonwealth of Independent States (CIS). Mil is an internationally recognized manufacturer of military and civilian helicopters which employs about 5,000.
 "Since 1991, we have been working closely with Anatoli Chubais to develop the concept of the Privatization Team and how it can be applied throughout the Russian Federation," said Sarah Carey, partner, Steptoe & Johnson. "Now that we have signed these first contracts with VYMPEL and Mil, we will continue working closely with Mr. Chubais to identify other Russian military defense companies with similar needs."
 "Defense companies in the former Soviet Union have world class capabilities in key technologies, because defense is where the U.S.S.R. invested," said Joyce Doria, vice president with Booz, Allen. "The Privatization Team will help these companies identify the technologies and products which will be competitive on the world market, restructure their operations to function as private corporations, and attract investment funds needed to expand their markets."
 It is estimated there are more than 43,000 companies slated for privatization within the Russian Federation. "Privatizing and diversifying many of these enterprises will bring greater prosperity to Russia, helping to stabilize its economy and making it more competitive," said James Moore, president of Ameritrade Inc.
 According to Carey, the concept behind the Privatization Team is that no single discipline or company can sufficiently meet the requirements of privatizing the massive Russian defense industry. Steptoe & Johnson is the Privatization Team leader and is responsible for legal issues of privatization.
 Other members of the Privatization Team are: Ameritrade, Inc., an international trade and investment firm based in Washington; and Booz, Allen & Hamilton Inc., the international management and technology consulting firm.
 Since its inception, the Privatization Team has taken a lead role in working with the Russian Federation Government and Russian defense firms on privatization and military conversion issues. In January 1992, the Privatization Team held a Privatization Conference in Moscow which was attended by directors of more than 50 high-level Russian defense companies. The conference was jointly sponsored with the Russian Union of Entrepreneurs and Industrialists.
 -0- 6/17/92
 /CONTACT: Sarah Carey of Steptoe & Johnson, 202-429-8114, or Jim Moore of Ameritrade, 202-682-4774, or Jeff Winbourne of Booz, Allen & Hamilton, 301-951-4553/ CO: The Privatization Team ST: District of Columbia IN: ARO SU: CON


CK-LD -- NY006 -- 0924 06/17/92 08:01 EDT
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Publication:PR Newswire
Date:Jun 17, 1992
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