Bankruptcy of Miass Machine-Building Plant: Roscosmos' Strategic Enterprise to Be Sold for 2.6 Billion Rubles

Only defense industry enterprises with a license for space activities will be able to participate in the closed tender

The Arbitration Court of the Chelyabinsk Region has approved the procedure for the sale of the bankrupt Miass Machine-Building Plant (JSC "MMZ"), which is part of the Roscosmos State Corporation. The enterprise, which produces missile systems and provides heat to the northern part of Miass, is estimated at 2.6 billion rubles. The sale will be carried out through a closed tender with special conditions for potential buyers.

A unified production site is being prepared for sale, which includes a thermal power plant, building No. 46, and equipment involved in the implementation of the state defense order. However, only companies from the register of defense industry enterprises that have licenses for the production of weapons and military equipment, work with state secrets, and – which caused controversy – space activities will be able to participate in the auction. The participation of firms with foreign capital is completely excluded.

At the request of Roscosmos, the future owner is obliged to maintain the profile of the enterprise, continue to fulfill the state defense order, and provide residents with thermal energy. These restrictions, as the court emphasized, are necessary to protect the interests of the state and preserve the country's defense capability.

The bankruptcy trustee and a number of creditors, including NOVATEK-Chelyabinsk and Uralenergosbyt, opposed such stringent requirements. In their opinion, the condition of having a space license is "extraordinary" and artificially narrows the circle of applicants. They recalled that the plant had never been involved in space projects and did not have the appropriate equipment. Nevertheless, the court found the arguments untenable, noting that more than 500 organizations with a license for space activities are registered in Russia, which means that competition remains.

The decision was supported by Roscosmos, the Makeyev State Rocket Center, the regional FSB Directorate, and the prosecutor's office. The "GRC Makeyev" stated that they consider MMZ as a potential site for the future production of the reusable vertical take-off and landing rocket "Korona", and therefore the presence of a license from the investor is fundamentally important.

JSC "Miass Machine-Building Plant" is included in the register of strategic organizations in Russia. In addition to defense orders, the enterprise produces civilian products and performs the functions of a heat supply organization in Miass. The plant ended up in bankruptcy proceedings in 2021 due to debts of over 2 billion rubles – mainly to Rosselkhozbank and energy companies.

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