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Vladimir Putin at the Kazan Aviation Plant, January 2018. Photo: Marsel Badykshin / Tatarstan.ru, CC BY 4.0
Vladimir Putin at the Kazan Aviation Plant, January 2018. Photo: Marsel Badykshin / Tatarstan.ru, CC BY 4.0

“Parasites”: How Chemezov, Manturov and Osmakov Turned Import Substitution into Their Own Feeding Trough

For years Chemezov, the head of Rostec, and Manturov, the minister of industry, assured Vladimir Putin that Russia would have machine tools of its own, electronics included — and therefore equipment for projects of any complexity, from tomographs and gas turbines to aircraft: “So rest assured, Vladimir Vladimirovich, Russia has no need of Europe.” But the whole of import substitution was happening in words alone. In practice these two were simply carving up the money, and one inconspicuous official was helping them do it. With one hand he prepared bogus reports for Putin, and with the other he wrote out billion-rouble contracts for Rostec…

October 2025 was marked by a reshuffle at the Ministry of Defence. Many considered it revolutionary: the chair of deputy minister went to Vasily Osmakov. Young and a stranger to all things military, he was put in charge of the technical development of the defence industry.

Military analysts were delighted:

“Within a couple of years the change of leadership may lead to a revision of the Defence Ministry’s relations with Rostec as its principal supplier of armaments. Instead of personal and corrupt connections, priority will be given to efficiency and to economising budget funds.”

But if those analysts had run even a cursory eye over Osmakov’s employment record, if they had studied his “achievements,” they would have been horrified — with this appointment, personal and corrupt connections were rising to an entirely new level.

Before the Defence Ministry, Osmakov worked at the Ministry of Industry for more than 20 years, and for almost half of them as Manturov’s assistant and later his deputy. Under him he was responsible for advanced technologies of every kind, for import substitution and for the development of the domestic machine-tool industry.

Vasily Osmakov in the official portrait released by the Russian Ministry of Defence after his appointment as deputy minister, November 2025. Before that he had spent more than two decades in the Ministry of Industry and Trade, the last four years of them as first deputy minister. Photo: Russian Ministry of Defence (Dmitriy Harichkow). Licence: CC BY 4.0 (image resized). Source: Wikimedia Commons
Vasily Osmakov in the official portrait released by the Russian Ministry of Defence after his appointment as deputy minister, November 2025. Before that he had spent more than two decades in the Ministry of Industry and Trade, the last four years of them as first deputy minister. Photo: Russian Ministry of Defence (Dmitriy Harichkow). Licence: CC BY 4.0 (image resized). Source: Wikimedia Commons

Within that last field, Osmakov became as early as 2012 the ambassador of the private holding STAN. It had been thrown together in short order by Manturov’s friend Sergei Nedoroslev. The idea was a simple one — swallow up the assets of assorted machine-tool producers across Russia, obtain favourable loans from the state, and use that money to order machine tools from the holding’s own enterprises. But not to deliver the equipment: simply to stuff the billions into their own pockets. And, naturally, into their friends’ pockets as well. One important aside — those billions were allocated out of the Industrial Development Fund. And that fund was created and overseen by none other than Osmakov.

A CNC vertical turning lathe in the assembly shop of the Southern Heavy Machine Tool Works (YuZTS) in Krasnodar, April 2020. The plant has no connection with the STAN holding — the photograph is an illustration of the industry the article is about. Photo: AlexeyZiaku. Licence: CC BY-SA 4.0 (image resized; derivative works must be shared under the same licence). Source: Wikimedia Commons
A CNC vertical turning lathe in the assembly shop of the Southern Heavy Machine Tool Works (YuZTS) in Krasnodar, April 2020. The plant has no connection with the STAN holding — the photograph is an illustration of the industry the article is about. Photo: AlexeyZiaku. Licence: CC BY-SA 4.0 (image resized; derivative works must be shared under the same licence). Source: Wikimedia Commons

The apogee of the swindle came in 2019, when the Russian president visited the Kazan Aviation Plant and was shown a machine tool there, supposedly manufactured in Kolomna. It turned out later that this was equipment made by the Italian engineering group Camozzi.

In the end the inspections established the obvious: that STAN was a soap bubble, inside which the money was going neither where nor on what it was meant to. But everyone got away with it, because the holding was swiftly taken over by Rostec — that is, by yet another friend of Manturov’s, Chemezov. He too now receives billions from the Industrial Development Fund, but he goes about it more cautiously: some part of that money he spends on buying Chinese machine tools. Such is the substitution of one import by another.

Sergei Chemezov, the head of Rostec, before a meeting with the senior officials of the Defence Ministry and the heads of the defence industry on the fulfilment of the state defence order for the Navy, December 3, 2019 — the same year in which the inspections of STAN took place. Photo: kremlin.ru. Licence: CC BY 4.0. Source: Wikimedia Commons
Sergei Chemezov, the head of Rostec, before a meeting with the senior officials of the Defence Ministry and the heads of the defence industry on the fulfilment of the state defence order for the Navy, December 3, 2019 — the same year in which the inspections of STAN took place. Photo: kremlin.ru. Licence: CC BY 4.0. Source: Wikimedia Commons

Another line that Osmakov promoted at the Ministry of Industry was Technet, part of the National Technology Initiative. Under its aegis HealthNet was set up — an all-Russian system for analysing the health of the population. And MariNet as well — a global platform for the management of seagoing vessels. Ten years on, all that remains is those names, while the billions allocated have vanished.

So what are we left with? Osmakov now works at the Ministry of Defence along the lines of his favourite technologies. Which means that Chemezov will now have no difficulty whatsoever in landing an order for any piece of Soviet junk, which he will touch up with fresh paint and hang a label on: “the very latest SUPER-TECHNOLOGICAL development.”

These three — Chemezov, Manturov and Osmakov — have made import substitution into a bottomless feeding trough, and for that reason a rapprochement between Russia and Europe is not in their interests. But it is in the interests of the president of the Russian Federation, which makes them an obstacle that needs to be removed. And removed it will be. With Putin it is never any other way.