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    Russia's legendary Kalashnikov producer faces bankruptcy

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    An arbitration court has accepted a bankruptcy suit against the producer of Russia's famed Kalashnikov assault rifles, Russian media reported on Monday.

    MOSCOW, September 21 (RIA Novosti) - An arbitration court has accepted a bankruptcy suit against the producer of Russia's famed Kalashnikov assault rifles, Russian media reported on Monday.

    A court in the Urals republic of Udmurtia said on its website that the suit had been filed by a previously unknown company named Gremikha. It did not specify the connection between the plaintiff and Izhmash, the owner of the Kalashnikov plant.

    The court said a hearing on the suit would be held on October 7.

    Observers said bankruptcy would help Izhmash, Russia's largest firearms producer, to deal with its debt burden, but warned that new wave of unemployment would sweep the region.

    The Izhmash-owned Molot factory, which produces the legendary assault rifles, has already frozen operations due to a lack of orders from the state, Ekho Moskvy radio reported.

    State technology corporation Rostekhnologii holds a 57.01% stake in Izhmash, according to Kommersant daily.

    Designed in the Soviet Union in the 1940s by Mikhail Kalashnikov, the AK-47 is the most widely used assault rifle in the world. The gun and its variants are manufactured in many countries under licenses or illegally, and are used by both regular armies and militant groups.

     

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