Since 2014, despite repeated promises to prioritize “civilian hi-tech” development, Rostec has firmly shifted its focus to ramping up  arms production. With the launch of Russia’s  full-scale invasion of Ukraine, the corporation entered full military mobilization mode: factories now operate around the clock, schoolchildren and students are drawn into production processes, and defense orders have taken absolute priority.

Rostec State Corporation stands as a cornerstone of Russia’s military-industrial complex. Founded in 2007, it brings together  enterprises across key sectors, including armaments, aviation, electronics, medicine and mechanical engineering. Its factories span  60 regions of Russia and are consolidated into several dozen holding companies. According to Ukrainian military intelligence, the corporation is responsible  for over half of Russia’s total weapons and military equipment production. 

In 2025, the Defence Intelligence of Ukraine (DIU), through its War and Sanctions portal, launched a new section detailing  the structure of Rostec’s  three most dangerous holdings. It  highlights nearly 250 key “death producers” within the United Engine Corporation (UEC), United Aircraft Corporation (UAC), and High-Precision Complexes. The portal provides tools to trace sanctions, assess each entity’s role in military support, and map their connections with other enterprises.

Using the War & Sanctions map and YouControl’s YC World networking system , Trap Aggressor analysts uncovered the inner structure  of Russia’s industrial holdings, crafting a detailed portrait of this sprawling state-owned war machine. 

United Engine Corporation: the engine of war 

On July 14, 2022, Russian forces launched Kalibr cruise missiles at the center of Vinnytsia, killing more than 20 civilians. The turbojet engines that carried those missiles were assembled at  UEC-Saturn, a key plant within the United Engine Corporation, one of the most critical holdings under Rostec’s control. 

But the devastation isn’t limited to Kalibr. UEC consolidates 78 enterprises across Russia, controlling 85% of the country’s engine industry. These facilities produce key aircraft engines for Russian combat aircraft and helicopters that are actively used in the war against Ukraine. In Ufa, UEC-UMPO manufactures  AL-41F1 engines for modern Su-57 fighter jets, along with  components for Ka-52 attack helicopters. In St. Petersburg, UEC-Klimov produces VK-2500 engines, which power Ka-52, Mi-28, and Mi-35 helicopters. At the Rybinsk-based UEC-Saturn, turbojet engines for the Su-35 are assembled, along with power units for Russian naval vessels. Meanwhile,  the Perm cluster produces PS-90 and PD-14 engines, supporting transport aviation. Each day, UEC’s products propel dozens of military systems used in strikes on Ukraine, making it not just a cog, but a driving force in Russia’s war machine.

Unlike most companies in the Russia’s defense industry, the UEC oversees the entire production chain, from research and design to serial manufacturing, maintenance, and modernization. This vertical integration enables UEC to swiftly adapt to sanctions, import substitution policies, technological isolation, and evolving demands from the front lines. As access to foreign components became increasingly restricted in 2023–2024, the holding’s enterprises accelerated the development of domestic alternatives. Since November 2024, the corporation has been led by Alexander Grachev, who has 30 years of experience in Russia’s engine industry.

United Aircraft Corporation: keeping the war in the air

Strategic aviation plays a central role in Russia’s ongoing war against Ukraine. In July 2024, the X-101 missile that struck the Okhmatdyt children’s hospital was launched from a Tu-95MS strategic bomber. The same aircraft model was used to fire X-22 missiles at a residential building in Dnipro in January 2023 and at the Amstor shopping center in Kremenchuk in the summer of 2022. For the four consecutive years, Russian fighter jets have launched strikes on Ukrainian cities from bases in the Saratov or Murmansk regions of the Russian Federation. These aircraft are manufactured and modified by the Tupolev Aircraft Company,  part of the United Aircraft Corporation (UAC). UAC supplies the Kremlin with a range of combat, heavy transport, and strategic bomber aircraft, including the Su-34, Su-35 andMiG-29.

The UAC was established in 2006 at the direct initiative of Vladimir Putin, who sought to centralize and militarize Russia’s aviation industry.  At that time, the corporation united the full aerospace legacy of the USSR, including design bureaus, manufacturing plants, test ranges, and research institutes. After the outbreak of the Russian invasion of Ukraine, the corporation turned into a “springboard” for attack and strategic aviation.

In November 2024, the UAC came under the leadership of Vadim Badekha, the former CEO of the Russian United Engine Corporation (UEC), a key player in Russia’s military-industrial expansion. As previously uncovered by Trap Aggressor investigators, Badekha was deeply involved in the development and delivery of Russian combat drones during his tenure as the head of the Ural Civil Aviation Plant (UZGA). These included models such as the Forpost-R, Altius, and Corsair. While leading UEC, Badekha also oversaw the establishment of a facility for turbojet engine production for UAVs, in partnership with Reynolds LLC, further strengthening Russia’s drone capabilities. Despite his long-standing and active role in advancing Russia’s war industry, Badekha was only added to the EU sanctions list in February 2025. As of now, he remains untouched by US sanctions. Meanwhile, his relatives have been expanding their international business footprint. His former father-in-law, banker Vladimir Frolov, owns Copernicus Gold – the blockchain-based payment system registered in Singapore and the Netherlands. Badekha’s former brother-in-law, Andrei Frolov, resides in Europe and operates a payment system business in both India and the United States.

The corporation includes Sukhoi’s Sturmoviks LLC, which services and modernizes Su-25 attack aircraft, which are most often used in the combat zone. The concern also includes the S.V. Ilyushin Aviation Complex, responsible for producing military transport aircraft such as the Il-76MD-90A, Il-78 and the Il-112V. Although Yakovlev primarily operates in the civilian aviation sector, it has effectively  become part of the military-industrial complex through its active participation in military programs commissioned by the Russian Ministry of Defense.

Today, UAC oversees more than 100 subsidiaries and operates over  30 full-fledged production sites across Russia. These facilities cover the entire spectrum of aircraft development – from final assembly to the manufacture of units, avionics, or components.

“High-Precision Complexes”: the foundation of tactical weapons

The Iskander-M is Russia’s premier tactical missile system, the same ballistic weapon responsible for devastating cluster strikes on the Odesa waterfront, the city center of Sumy, and a restaurant in Kryvyi Rih. Despite its frontline use, this system is assembled deep within Russia’s military-industrial complex. 

“High-Precision Complexes” is a structural part of Rostec, responsible for equipping  the Russian armed forces with anti-tank missiles, anti-aircraft systems, and long-range precision strike weapons. Founded in 2009, the company unites more than 50 enterprises, including both design bureaus and manufacturing plants. Among its components are the Academician A.G. Shipunov Instrumentation Design Bureau, Kurgan Machine-Building Plant, and the Central Research Institute of Automation and Hydraulics.

The holding develops and produces a variety of tactical weapons that are actively used by the Russian military. Its enterprises manufacture a range of missile systems, including Pantsir-S1 air defense systems, Kornet, Khrizantema and Kontest anti-tank systems designed specifically to destroy armored vehicles. In addition, the holding is responsible for high-precision artillery systems like Krasnopol and Kitolov, as well as Berezhok and Bakhcha combat modules. It also produces protection systems, including Arena and Drozd. This wide arsenal shows that the holding’s central role in equipping the Russian armed forces with weaponry for warfare.

In November 2022, Oleg Ryazantsev was appointed as a head of the High-Precision Complexes holding. Two years later, in December 2024, he was added to the sanctions lists of both the EU and Switzerland for his role in activities that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine.

Not only weapons: the “civilian” structures of Rostec holdings

Rostec employs approximately  700,000 people, and that number has surged since 2022. In order to continually expand its labor force in support of the war effort, the corporation has built a whole system of incentives and social benefits. This effort begins with ideological indoctrination from early childhood, extending through education, employment and even leisure. Some companies of the holding recruit directly from youth programs, others organize recreation and medical treatment for current employees and their families. Many also manage the infrastructure and social environment surrounding military-industrial zones.

Among these “civilian” entities is UAC-Zdorovye, the UAC subsidiary officially registered in the occupied Crimea. It offers vacation vouchers to Rostec’s employees for stays at corporate recreation centers located in the Moscow region, on Lake Baikal and along the Black Sea coast, including two resorts in Crimea.

Other facilities within Rostec’s “civilian” ecosystem serve dual purposes, supporting both industry workers and the military apparatus. One example is  the Samara sanatorium, owned by an enterprise that produces engines for Russian strategic bombers. The sanatorium promotes the “prolongation of active professional longevity”, offering rest and recovery to employees involved in the defense sector.

Another example is the Kedr Medical Center, owned by UAC and located in Komsomolsk-on-Amur. Founded in 1945 to support the health of employees at the Gagarin Aviation Plant, originally, designed to maintain the health of those who “forged ‘victory’ on the labor front for 12 hours without leaving the machine.“ In addition to the plant’s employees, Kedr continues it legacy, providing medical treatment and recovery programs for Russian soldiers wounded in Ukraine during the so-called “special military operation”. The center also offers holiday camps for their children. 

The tradition of combining adult and children’s recreation continues at Ilyushin Aircraft Company, a UAC enterprise responsible for manufacturing Il-76MD-90A aircraft. The company operates the Druzhba children’s in the Moscow region, where some of its current employees once spent their childhood as Soviet pioneers. Even during the off-season, when the camp is empty of children, it remains active.  Druzhba transforms into a “Personnel Training Center”, functioning as a formal  branch of Ilyushin Aircraft Company.

These so-called “incentives” are also used to recruit young people. At Druzhba camp, youth gatherings are held to discuss projects in aircraft construction, promote sports and entertainment events, and develop the initiatives of young workers. In this way, the Russian Federation implements the youth policy of the Personnel Training Center.

In a bid  to attract new talent to their enterprises or even to shape specialists from the ground up, Rostec holdings are developing special programs for students, forging partnerships with secondary and higher education institutions. For example, they create career guidance and certification centers that participate in the development of curricula, organize  competitions for students’ professional self-determination. Moreover, Rostec is also a formal partner of Russian schools, where children as early as the 1st grade are invited to join a large military family.  And in 2025, the corporation’s enterprises are set to invest over 1 billion rubles in the development of so-called “advanced engineering schools” based on technical higher education institutions across the country. 

Graduates of school and college  are offered what appears to be a dream opportunity – enrollment in Wings of Rostec, the corporation’s training course for future aircraft engineers. The program promises generous  scholarships, free housing, and a direct pathway to internships and employment within one of the UIC’s enterprises.

The “Wings of Rostec” project  directly partners  at least 15 technical universities across Russia, including institutions in Moscow, St. Petersburg, Ufa, Samara, Rybinsk, Kazan, Ulan-Ude, Perm, Irkutsk, Novosibirsk, Ulyanovsk, Komsomolsk-on-Amur, Nizhny Novgorod, and Omsk. The most dedicated  students are even given the opportunity to study artificial intelligence in China. 

Today, more than 1,500 students are enrolled in the “Wings of Rostec” project. The corporation is actively training a new generation of specialists who are future employees of the Russian military industry.

While students are funneled into the workforce, the leaders of Russia’s arms industry  are rewarded with real estate. In the Russian city of Kurgan, the management of the Kurganmashzavod plant, which produces armored vehicles (BMPs, BMDs, and APCs), has announced plans to construct four ten-story residential buildings with 780 apartments. Slated for completion by 2027, these homes are part of the Russian Dream project, with employees promised housing subsidies.

Villas, yachts and millions: the rear of the Kremlin’s chief weapons maker

While low- and mid-level workers save money for a privileged one-bedroom apartment far from Russia’s urban centers, or dream about a subsidized vacation to the occupied Crimea, the architect of this war machine lives in unrestrained luxury. Sergei Chemezov, known as “the man after Putin” and the chief engineer of the Rostec empire, lives far removed from the wartime conditions his enterprise enforces on others. In 2021, Russian Forbes reported that Chemezov’s family earned 783 million rubles in a single year, ranking him 18th among Russian highest-paid public officials. Since then, amid 3 years of the full-scale invasion, that figure has likely increased dramatically. Meanwhile, the revenue of Rostec for 2024 was estimated at  4 trillion Russian rubles. 

Investigations by Pandora Papers and OCCRP have exposed the massive wealth of the Chemezov family. Among the highlights of their holdings is the 85-meter yacht Valerie, valued at $140 million and registered under the name of Chemezov’s stepdaughter via a network of offshore companies. In Moscow, the family owns apartments of more than 800 m², officially registered in the name of his wife, Katerina Chemezova. Altogether, the family controls at least 48 properties, including commercial premises in Russia and abroad. In 2019, the couple’s official income exceeded $30 million, and through their offshore entities Sightview Consultants Limited and Penimar Holdings, they control companies in the IT, real estate development, and telecommunications sectors. Despite the sanctions imposed by the US, EU, and other countries, the Chemezov retain control over the critical segments of the Russian military economy through flexible forms of ownership and disguise as “civilian” projects. 

Rostec in the crosshairs of sanctions 

Rostec companies are regularly included in international sanctions lists. According to data from the War & Sanctions portal, the companies of the three holdings have been  sanctioned by Ukraine, the United States, Switzerland, Japan, and the EU while sanctions from Canada, New Zealand and Australia cover a smaller share of these enterprises. 

However, it is often  difficult for foreign partners to apply sanctions to Rostec enterprises. Information about these companies is frequently not publicly available, and the companies are dispersed throughout the corporation’s structure, with ownership or operational control regularly shifted between subsidiaries. Data in Russian state registries and procurement systems is often concealed, and articles or news related to these enterprises’ involvement in military production are systematically removed from the corporation’s official platforms.

More public company executives are also on the sanctions lists. For example, Oleg Ryazantsev, head of High-Precision Complexes, and Vadim Badekha, CEO of UAC, are under international sanctions, while Alexander Grachev, CEO of UEC, is not.

Rostec is not just a network of factories producing Russian weapons. It is an entire  web that draws in people of all ages and backgrounds. Children are recruited into “patriotic” clubs, students are given scholarships, employees are rewarded with housing discounts and seaside resort vouchers. And for what purpose? To keep every cog of this machine spinning at full speed, leaving no time or space for unnecessary questions. This includes thousands of companies that pose as civilian enterprises, but, in reality, serve the interests of the Russian regime. The symbol of this hybrid system is Sergei Chemezov, the architect of Russia’s  war economy — a man who stands to gain nothing from ceasefire, let alone peace. And to stop this evil empire, it is not enough to sanction only the enterprises of the military-industrial complex. What is required is the deconstruction of the entire support infrastructure — from production lines to the incentive systems that sustain the loyalty of Russian enablers.

The material was prepared with the support of the International Renaissance Foundation. The material represents the position of the authors and does not necessarily reflect the position of the International Renaissance Foundation.