State Corporation Rostec
Native name
Государственная корпорация «Ростех»
Gosudarstvennaya Korporatsiya "Rostekh"
TypeState corporation
IndustryConglomerate (ISIC: 6420)
Founded23 November 2007; 14 years ago (2007-11-23)
FounderVladimir Putin by signed law[1]
Area served
Key people
Denis Manturov (Chairman)
Sergey Chemezov (CEO)
RevenueIncrease$27.2 billion[2] (2017)
Increase$4 billion[3] (2016)
Increase$1.31 billion[3] (2016)
OwnerFederal Agency for State Property Management
Number of employees
453,000[4] (2016)
DivisionsAircraft, Electronics, Armament
Subsidiariessee below

Rostec (Russian: Ростех, tr. Rostekh), officially the State Corporation for Assistance to Development, Production and Export of Advanced Technology Industrial Product Rostec (Russian: Государственная корпорация по содействию разработке, производству и экспорту высокотехнологичной промышленной продукции «Ростех») and formerly Rostekhnologii (Russian: Ростехнологии, literally "Russian Technologies"), is a Russian state-owned holding conglomerate headquartered in Moscow that specializes on investing in strategically important companies, mainly in the defense and high-tech industries, by assisting in the development, production and export with the ultimate goal of capitalizing them and bringing them to an initial public offering (IPO).[5]

Established in 2007, the organization comprises about 700 enterprises, which together form 14 holding companies: eleven in the defense-industry complex and three in civil sectors. Rostec's organizations are located in 60 constituents of the Russian Federation and supply goods to over 70 countries worldwide.[6][7] The organization is headed by Sergey Chemezov.[8]


Logo of Rostekhnologii
Logo of Rostekhnologii

On 23 November 2007, Russian President Vladimir Putin signed federal law No. 270 to establish a state corporation named Rostekhnologii, which was previously passed by the State Duma on 9 November and passed by the Federation Council on 16 November.[9][10][11][12][13]

Later in 10 July 2008, newly-elected Russian President Dmitry Medvedev signed a decree that transfers 443 struggling enterprises to the ownership under Rostekhnologii. Out of these acquired assets, 30% of such enterprises were in pre-crisis and crisis condition, 28 entities in bankruptcy proceedings, 17 had no business operations, and 27 had lost part of their assets or faced a material risk of such loss, with all facing a total debt of RUB630 billion. In addition, these enterprises had worn out fixed assets, dilapidated production chains, and poor management.[11][14][15]

After the acquisition, structural reforms were made, helping the enterprises emerge from their financial struggles with a 20%–30% increase in production growth, five times the national average. Most of the profits were acquired by Rostekhnologii, which 80% of it was from 20% of Rostekhnologii's assets. The 20% included the titanium monopoly VSMPO-AVISMA, helicopter manufacturers Mil and Kamov, AvtoVAZ, and KamAZ. This in turn brought executives of some companies in conflict with each other, such as the case with Mil and Kamov in which they refuse to communicate with each other. As a result, Rostekhnologii had to work with the two companies so they can cooperate with each other.[15]

On 21 December 2012, Rostekhnologii rebranded itself as Rostec to make the corporation more open to the world. Rostec also featured a new logo, an open square symbolizing a window to the world and a focus frame, as well a new slogan "Partner in development" and implemented changes in its corporate governance structure.[11][16][17][18] The corporation spent $1.5 million for rebranding.[17] The corporate brand, which was launched in late 2012, is currently one of Russia's 15 most valuable brands and has a value similar to that of major companies such as Rosneft and Rostelecom.[19]

On 16 July 2014, as a result of Russian intervention in Ukraine and Russian annexation of Crimea, Rostec was one of the companies that was sanctioned by the Obama administration. Sergey Chemezov, current CEO of Rostec, was one of the individuals targeted by the United States (U.S.) and the European Union (E.U.), whose visa was banned and assets froze by the E.U.. Rostec's access to U.S. debt markets was also limited. Rostec was forced to rethink its strategy for its holding companies.[20][21][22][23]

In December 2015, Rostec's supervisory board approved its development strategy through 2025. According to the strategy, Rostec intends to change the Russian economic model by putting less emphasis on weaponry, aviation components, and software and more emphasis on electronics, telecommunications, robotics, and other high-tech industries. This in turn would diversify the Russian economy, increasing the share of high-tech civilian products and non-primary exports.[11][24][25]

Corporate governance

Sergey Chemezov, current General Director/CEO of Rostec since its founding
Sergey Chemezov, current General Director/CEO of Rostec since its founding

The Supervisory Board, the Management Board, and the General Director are all appointed by the President of Russia.[26]

Supervisory board

Management board

Scientific and Technical Council

Social policy


The companies controlled by Rostec employ about 450,000 people.[27] A special focus of the corporation's responsibility on labor involves 21 dominant employers that are part of Rostec.[28] As an example of corporate activity aimed at stabilization of social environment in one-company towns, mass media covered Rostec's labor policy in relation to AvtoVAZ, a dominant employer in Togliatti during the 2008-2009 economic crisis. Despite large-scale layoffs, public unrest was prevented by a special employment program for dismissed workers.[29] The unemployment rate in the company town of Verkhnyaya Salda, Sverdlovsk Oblast, which is owned by VSMPO-AVISMA, is less than 1%.[30]


In order to implement its Health National Program, the corporation has set up nine centers for high medical technologies.[31] Five centers for cardiovascular surgery (Khabarovsk, Krasnoyarsk, Chelyabinsk, Perm and Kaliningrad), two centers for neurosurgery (Tyumen and Novosibirsk) and to centers for traumatic surgery, orthopedics and endoprosthesis replacement (Smolensk and Barnaul).[32]

Rostec is a participant in the Perinatal center development program along with Russia's Ministry of Health, the Federal Compulsory Medical Insurance Fund and federal member state authorities.[33][34]

As of March 2017, Rostec had built and equipped perinatal centers in 15 federal subjects of Russia:


Rostec cooperates with 312 leading higher educational institutions, including, among others, Bauman Moscow State Technical University, and the Plekhanov Russian University of Economics, through targeted training of specialists, development of cooperation in the framework of scientific and technological areas, joint research, design and technological work. There are 294 departments belonging to holding companies and enterprises under Rostec in these institutions.[36][37]

In 2015, Rostec started 165 projects in collaboration with these institutions at a cost amounted to 2.8 billion rubles.[38]


On November 27, 2007, Rostec became general sponsor of FC Krylia Sovetov Samara; however, in 2011 the corporation decided to suspend its support of the team.[39]

In 2010 and 2011, Rostec sponsored Vitaly Petrov, Formula One racing driver. In 2012, Russian Helicopters partnered with Caterham F1Team for which Petrov drives.[40]

Improving professional training of the employees, Rostec cooperates with the WorldSkills movement.[41] In 2015 the Corporation and WorldSkills Russia concluded a cooperation agreement which is aimed mainly at the joint work on training specialists for high-tech industries. State Corporation Rostec is a general partner of WorldSkills Russia in accordance with a three-year agreement.[42]


The construction of the new corporate headquarters complex of Rostec in Moscow.

As of late 2016, going by its development strategy, Rostec organizes its 700 enterprises into either directly controlled companies or clusters composed of holding companies.[43][44][45]




Directly controlled companies

Financial performance

The preliminary financial performance for 2012 show that the overall revenue of Rostec exceeded RUR960 billion compared with RUR817 billion a year earlier.[46] Revenues from export to 70 countries globally exceeded RUR240 billion.[47] Rostec's net profit in 2012 was almost RUR40 billion. Corporation's companies paid over RUR120 billion in 2012 tax. Investments in modernization and production growth exceeded RUR112 billion. The average monthly payroll went up to RUR26,200 from RUR23,700 a year earlier.

Main financial indicators,[48] 2015 ($1 = 60,96 RUB):

See also


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  5. ^ Belton, Catherine (21 November 2012). "Russian industrial group prepares for IPOs". Financial Times. Archived from the original on 18 August 2017. Retrieved 18 August 2017.
  6. ^ 4-traders. "Kazanskiy vertoletnyi zavod OAO : Russian Helicopters names Rostec Deputy CEO Vladimir Artyakov as Chairman of the Board of Directors | 4-Traders". Archived from the original on 2016-11-23. Retrieved 2017-03-14.
  7. ^ Уральский оптико-механический завод оснастит медучреждения Еревана неонатальным оборудованием. Регионы России (in Russian). Retrieved 2018-07-02.
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  13. ^ "Rostec Corporation: Private Company Information". Archived from the original on 2013-09-28. Retrieved 2017-08-18.
  14. ^ "Prime Minister of the Russian Federation". 2009-12-04. Archived from the original on 2017-08-19. Retrieved 2017-08-18.
  15. ^ a b "Нанпнмйю Он Онякедмеи Лнде √ Демэцх √ Йнллепяюмрз". 2012-12-24. Archived from the original on 2017-08-19. Retrieved 2017-08-18.
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  27. ^ "A Defensive Rebranding Exercise". Archived from the original on 2016-10-24.
  28. ^ "ДВАДЦАТКА "РОСТЕХНОЛОГИЙ"". Archived from the original on 2013-09-27.
  29. ^ "Содействие трудоустройству работников дочерних обществ ОАО "АВТОВАЗ"". Archived from the original on 2013-09-27.
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  32. ^ Надеемся, что очередей в высокотехнологичные медцентры не будет – зам. гендиректора «Ростехнологий» Николай ВОЛОБУЕВ
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