DEFENSE SECTOR TO INCREASE CIVILIAN PRODUCTION IN 1996.

Experts at the Russian Ministry of Economics project that converted Russian defense enterprises will increase their output of civilian goods in 1996. Civilian defense production fell by 38.5 percent in 1994 and 22 percent in 1995, largely due to low budget financing and buyer insolvency, the ministry reported. It projected an 11 percent increase in defense production for the fuel, energy, and electronic industry complex and a 2 percent increase in output for agro-industrial complex processing facilities. Significant increases in civilian aircraft production, as well as a slight improvement in helicopter production were also foreseen. The ministry claimed demand has already risen for Tupolev-204 planes, Ilyushin-96 -300 aircraft, and Mi-26 helicopters. (3)

Far East to Import Grain Directly.