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MOSCOW, February 07. /ITAR-TASS/. Kalashnikov Concern predicts an operating loss of 1.7 billion rubles ($49 million) as of the end of 2013, enterprise’s CEO Alexei Krivoruchko, said on Friday.
“It’s not a secret that Kalashnikov Concern is facing a crisis. The situation is very complex. We’ll work to reduce costs,” Krivoruchko said.
According to earlier reports, in February 2014, one of the new shareholders Alexei Krivoruchko was appointed the enterprise’s CEO. He was a member of the board of directors in September 2013 when the Rostec leadership decided to give 49% of shares to private investors. Under the agreement, Krivoruchko jointly with Transmashholding President and co-owner Andrei Bokarev will invest 2.5 billion rubles ($72 million) from their own and borrowed funds, which will be used to pay debts, loans and develop enterprises.
Rostec will have the major stake after the deal is closed. In compliance with the strategy for developing small arms, Kalashnikov Concern will be the major Russian arms supplier to the global market by 2020. The concern will conduct research and development works to create promising arms systems.