The Control Systems Agency combines the functions of three former ministries: the Ministry of Radio Engineering, the Ministry of the Electronic Industry and the Ministry for the Manufacture of Communications Equipment, with a total of more than 700 enterprises. The task of the Agency is to create the technological base for the output of radioelectronic products. The quality of the output in recent years was subjected to severe criticism. It is actually impossible to buy a normal transistor in Russia except at the Mitinsky Market. The agency is based on the reality that without microelectronics there can be no development of the national economy. The Commission for Industry will discuss, in particular, the question of recreating the microelectronic and technological base of the country. It has already been reported that it will be launch a silicon plant this year.
Restructuring is a formidable task, requiring that enterprised are capable both of fulfilling government defense contracts and exporting their output. It is not easy to create integrated industrial structures, and the forms of creating integrated structures are various. There are examples of structures that perform well, for instance, Fazotron, a 100-percent privately owned enterprise. Concern of the type of Antei are also working well. State participation in them is greater and they get large defense contracts.
On 22 October 1999 the formation of the Federal Control Systems Agency was concluded. All the Agency's structural departments had been established and started working. Among them there are departments of the state defence order, economy, finances, promotion of military and technical cooperation and also of state of prices, marketing and property, the Agency General Director Vladimir Simonov reported. The first session of the Agency's board attended by Russian Vice Premier Ilya Klebanov defined the redemption of debt to defence enterprises, first of all to those providing arms and military equipment for bodies as the most important task.On 28 December 1999 the Russian Government passed the provision on Russian Control Systems Agency. The appropriate regulation #1430 was signed by Russian Prime Minister Vladimir Putin. Under that provision, Russian Control System[s] Agency is a federal body of executive power branch implementing control, permissive, regulating and other responsibilities in the field of radio electronics and control systems, including researches, development, manufacture, updating and utilisation of special control systems and electronic complexes, the systems of missile defence, the warning on missile attack and control over space. The Agency conducts the state enterprises of radio electronic industry.