New State Corporation Likely To Be One Among Many
Russian President Vladimir Putin has introduced legislation before the Russian parliament that would nationalize key sectors of the Russian economy.
The legislation calls for the creation of a state-owned corporation, Rostechnologii.
The corporation will own its own assets and its managers will be appointed by the president of the Russian Federation.
The new state-owned giant will control the Russian military-industrial sector.
It will also absorb the largest Russian car manufacturer, OAO Avtovaz and the titanium-maker VSMPO-Avisma.
VSMPO-Avisma is a key supplier to the American company Boeing.
The Russian parliament is dominated by President Putin's party and it is all but certain that the legislation will pass.
Plans are also being drafted in high Kremlin circles to nationalize the arms-trading, shipbuilding, and atomic energy sectors, among others.
Russia Concentrates Political and Economic Power
Putin's move comes on the heels of what analysts considered an attempt by the Russian gas giant GazProm to complicate the formation of the new Ukrainian government.
Experts believe GazProm threatened to cut off Ukrainian gas supplies on the basis of invented debts in hopes the public spectacle might bolster the strength of the outgoing (Pro-Russian) parliamentary bloc.
The Putin government has continually operated far outside of American and European standards for the separation of state power and the market economy.
Government pressure in August led the last remaining independent oil entrepreneur in Russia, Mikhail Gutseriev, to surrender his 100% stake in the $6 billion company Russneft and flee the country.