After arriving at Komsomolsk-on-Amur yesterday, Prime Minister Vladimir Putin inspected at the Sukhoi Holding Company's flagship plant, which will produce the Superjet-100 plane, and promised to provide more money to increase the authorised capital of the Russian-Italian joint venture and speed up the plane's deployment. During a conference, at which the fate of the shipbuilding industry in the Far East was discussed, he promised more money to the most underdeveloped enterprise in the sector, the Amur Shipbuilding Plant, and stunned everyone by announcing that the plant would be deprivatised, because, as he said, its current owners could not manage it properly. Our special correspondent ANDREI KOLESNIKOV reports on the details from Komsomolsk-on-Amur.
Three Superjet-100 planes, all without engines, were sitting in the final assembly workshop. Two planes with engines had recently flown to Zhukovsky. The foreman, Ilya Kostin, said it was a good plane in every way. To test the engine jointly produced with the French, workers at the Saturn plant in Rybinsk shovelled sand into its turbines. Nothing happened. "What do you mean, nothing happened?" I asked. "Did the engine stall?"
"Nothing happened. The sand was blown out."
"Did you try throwing in birds?" I asked.
"It reminds me of a joke," Ilya Kostin laughed. "Once in a similar experiment, they threw chickens into the engine and the engine was blown to smithereens. It turned out that the chickens were frozen."
"But seriously, did you use birds in the experiment," I persisted, suspecting that the joke was not really a joke, but part of the grim reality of the Russian aerospace industry.
"Of course we threw in chickens," acknowledged Ilya Kostin. "After all, it was a test. But this plane can stand anything."
The same, I understand, cannot be said of the birds.
Ninety-six planes have already been sold, according to Olga Kayukova, the plant's public relations director. The first deliveries will be to Armenian Airlines. "How did you manage to withstand the crisis?" I asked.
"The orders for the plane were placed before the crisis," Olga Kayukova replied cheerfully.
"They paid in advance, and they cannot back out now. Of course there are companies like Dalavia or AirUnion, which were happy to declare bankruptcy. But such companies are few and far between. Besides, Rosavia will buy out their orders (six and 15 planes respectively - A.K.).
Sukhoi's director-general Mikhail Pogosyan added that Armenian Airlines, like all other airlines, cannot afford to buy anything at present. Credit programmes through Vnesheconombank and Vneshtorgbank are being developed for them...
Some French nationals were sitting in the corner of the assembly shop behind an iron mesh fence. They looked timidly at what was happening around them, and did not venture outside the enclosed space or did not talk with anyone. Meanwhile, we were told that the French were there to carry out a delicate mission: when an engine of a Superjet-100 is delivered from Rybinsk, the French add the engine cover and then install the engine under the wing.
In fact, the French behind the net looked somehow exhausted. They looked as if they were hostages who could be helpful in, for example, amicably resolving the disputed custody issue concerning the three-year-old Russian-French girl, Liza Belenkaya.
Vladimir Putin arrived in Komsomolsk-on-Amur three hours late, which is exactly enough time to watch the World Hockey Championship between Russia and Canada.
When they reached one of the test benches, Mr Putin informed Mr Pogosyan that the Government was allocating 3.2 billion roubles to increase its share in the Russian-Italian joint venture that is building the Superjet-100. The Government is giving Sukhoi a further 3.6 billion roubles as direct support for the Superjet-100 project under a federal targeted programme. Airlines will receive $250 million in the form of a loan to buy the Superjet.
Mr Putin climbed aboard the new plane, in which several rows of seats had been installed, and where the journalists, exhausted after the flight from Moscow to Komsomolsk-on-Amur, were taking a nap while waiting for him. Mr Putin sat in the pilot's seat, and emerged from the Superjet apparently persuaded that the money was in good hands.
"It is an ambitious programme," the Prime Minister told the staff, "intended for..."
He looked at Mr Pogosyan, making me wonder whether the programme was intended for Mr Pogosyan.
"For 25 years," the head of Sukhoi holding replied to the Prime Minister's questioning look.
"For 25 years," the Prime Minister repeated, "you will not be without work."
"We are happy to hear it," responded the plant's employees.
"We are happy to hear it as well. This is a good product," the Prime Minister added.
Nothing remotely as cheerful could be said about the Amur Shipbuilding Plant, which was Mr Putin's next stop after inspecting the Superjet. The plant builds submarines, or rather used to build submarines. The Bars-class nuclear submarine, the plant's flagship project, sits in the main workshop. There are several holes in the roof. The submarine is rusty and there are cobwebs everywhere.
But the most harrowing impression was the sight of a single, skinny navy sailor standing guard on the deck of one of the submarines that had already been under repair for endless number of years. The submarine had to be guarded round-the-clock, and so a sailor stood there round-the-clock.
Mr Putin, though aware of the sorry state of the Amur Shipbuilding Plant, was still shaken by what he saw. He invited one of the plant's worker, Alexander Astrakhantsev, into the conference room after the worker told the Prime Minister about how it would be good if the enterprise were returned to the state. (At present it is owned by a group of private shareholders). When Alexander Astrakhantsev's nameplate was placed next to that of the Prime Minister, there was considerable animation among the other participants of the conference.
"Who the hell is that?" Primorye Governor Mr Darkin inquired jealously.
Upon hearing the answer, one of the conference participants said in a quiet voice, "yes, like the story of Lenin and the stove repairman."
As it happened, the "stove repairman" was to play a historic role at the conference.
At the start of the meeting Mr Putin severely criticised Russian companies that have tried to have Russian vessels built in South Korea.
"I am not going to point any fingers," the Prime Minister said, but it was clear that he was referring to Sovkomflot.
Denis Manturov, Deputy Minister of Industrial Trade, reminded those present that the plant owed Sberbank 14 billion roubles.
"It is impossible to complete this sophisticated project (finishing a Bars class submarine - A.K.). We reported to you yesterday, and we look forward to a concrete decision today," Mr Manturov added.
The head of Rosrybolovstvo, Andrei Krainy, had no illusions about the Amur Shipbuilding Plant.
"You can't build fishing ships at this plant," he said. Modern fishing vessels won't fit through the 12 metre gate."
Mr Krainy said that 562 fishing vessels had to be built before 2020, in order to tap the resources in Russian waters.
"If this country does not use them, by an international convention, neighbouring countries will come in and help," he added.
Andrei Krainy reported two pieces of news, one good and one bad. The good news was that "by 2015 we will have about 1 million tonnes of herring and sardines". The bad news was that "there is no equipment. We have only one vessel, which uses a pump to suck in fish along with water."
Mr Krainy proposed setting up consortiums with the Norwegians, who are "the best fishermen in the world", and building vessels at Russian shipyards with their technology.
"Rosrybolovstvo," he said, "is ready to order the proposed vessels."
Another idea proposed by Mr Krainy was to use fishing quotas owned by Russian companies as collateral for loans, instead of outdated fishing vessels that banks are not interested in.
"The companies which offer their part of the quota as collateral will be careful to pay interest, because for them losing their quota means losing their business," said Mr Krainy.
"What do you think about quotas?" Vladimir Putin asked Deputy Finance Minister Anton Siluanov.
"It is an option for banks," he replied.
"What is missing then?"
"A managerial decision, the political will," Andrei Krainy exclaimed. An amendment is needed to the Law On Fishing".
"Why an amendment?" the Prime Minister asked. Can't it be done without an amendment?"
"The bank won't be able to return the collateral because it is intangible", Mr Krainy explained.
"We will introduce an amendment if necessary," the Prime Minister added, "but we must look into the matter more carefully."
The head of Sovkomflot, Sergei Frank, reported in passing that the Russian vessel Novoship Spirit had beaten off a pirate attack by itself, before the warship Admiral Panteleyev came to the rescue and sent a helicopter with six marines. But it was left to Mr Putin to reveal the main news of the day. He said that the plant's problems were closely linked with the issue of its ownership.
"The present owners have proved to be inefficient managers," he said.
The mechanic Astrakhantsev's time to contribute had come.
"When I met with the workers," said Mr Putin, "they said, on behalf of all the workers in the factory, that they wanted the plant to be back in government hands. You have the floor, Mr Astrakhantsev."
"If you deprivatise the plant," said Alexander Astrakhantsev as if he was speaking on behalf of the workforce, "the plant will gradually recover. We will train new workers... Yes, we want to be back in state hands."
He should not have used the word "deprivatisation". Mr Putin for one did not like it. He had said on many occasions that the results of privatisation would not be reconsidered.
"Deprivatisation is not our goal in the literal sense," the Prime Minister corrected the worker. "But if the ownership is ineffective, we try to change the situation, especially at enterprises that fulfil defence contracts".
Mr Putin explained that 59% of the plant's shares were in private hands.
"However, the day before yesterday Sberbank and a group of shareholders signed an agreement under which the shareholders sold their shares to the bank," Mr Putin paused, "at a nominal price. Sberbank is selling them on to the United Shipbuilding Company, which already owns a 19% stake in the plant. Thus the government ends up with a 77% stake in the Amur Shipbuilding Plant".
It then became apparent that Alexander Astrakhantsev's speech was just for show, because the decision had been made the day before yesterday.
In addition, Sberbank would issue a $430 million, ten-year loan to rehabilitate the plant.
"The source for repaying the loan is certain," the Prime Minister added. "Besides, the bank will no longer write off the plant's accounts without the owner's consent. Is that so?"
"Yes," Sberbank deputy chairman Yevgeny Korolyov confirmed.
"In addition, we should raise 1.9 billion roubles to finish and test Project 518 (the unfinished submarine). Will you be able to find funds?" He need not have asked the question.
After the conference, the mechanic Astrakhantsev admitted to me this had been one of the most important days in his life.
"Can you remember any more important days in your life?" I asked.
He thought a while and said, "Yes. When my daughters were born".