Russian Oboronprom investment trust, know for initiating the consolidation of the country’s helicopter makers, plans to set up another defense holding that will bring together Russia’s manufacturers of electronic warfare systems. 

The trust’s head Denis Manturov told Russia/CIS Observer that the future EW holding would be based on Defense Systems company also controlled by Oboronprom. Although Defense System’s major programs are the modernization and manufacturing of components for Russian surface-to-air missiles systems, it has some EW products such as KRTZ EMI shielding set developed for one of its S-125 Pechora-2M (SA-3 Goa) medium altitude AD system.

As Manturov explained, the future holding will merge more then two dozens Russian facilities that produce air, naval and land EW products. The consolidation will be completed by 2007. The mechanism of the integration is said to be similar to the creation of the helicopter holding as the Russian government will hand over to Oboronprom the share packages of the EW companies it currently possesses.

"This task is easier than the one with the helicopters merger, as these assets and products have not been demanded on the market so far,” - said Manturov –"But since we have started with this business, the companies began to get more orders”. He believes that the future sales of the EW merger may be comparable with those of Oboronprom’s helicopter business.