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Russian manufacturer of heavy-duty trucks sells Ukrainian segment of business to partner

April 29, 2014, 0:10 UTC+3 MOSCOW
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MOSCOW, April 28. /ITAR-TASS/. Russia’s leading manufacturer of heavy-duty trucks, KAMAZ Group sold its Ukrainian segment of distribution and customer service business to a foreign partner, materials released by the company say.

Uncertainties of the economic and political situation in Ukraine and the slide of the hrivna’s exchange rate against the major international currencies have depressed liquidity and toughened the terms for borrowings, KAMAZ says.

“In March 2014, the group sold its business related to the sales and customer servicing in Ukraine to a foreign partner,” the report says.

At the end of 2013, the assets of the group vulnerable to the risks arising from the situation in Ukraine stood at around 760 million rubles (USD 1 is equivalent of 36.0 rubles at the current exchange rate).

As a result, the group posted revenue of 58 million rubles.

In December 2013, KAMAZ purchased 42.07% in the company KAMAZ Vectra Motors Ltd., thus building up its package to 100%. It paid 68 million rubles for the transaction.

The joint-venture and sells cars and does customer support belonged to an Indian company then. In the aftermath of the purchase, KAMAZ has nineteen joint-ventures at the moment.

In February 2014, KAMAZ paid off the second tranche of bonds in the amount of 3 billion rubles and it opened a range of new loan facilities to the tune of 3.7 billion rubles.

An average interest rate under these facilities totals 9% annual and the debts mature in the period of 2019 through to 2022.

“The groups’ liabilities on these loans stood at 36 million rubles on the reporting date,” the report says.

KAMAZ occupies the 16th position in the world among the leading manufacturers of heavy-duty and the eighth position as regards the manufacturing of diesel-powered engines.

The group’s technological chain embraces eleven automobile factories and subsidiary enterprises.

The list of its shareholders includes the Cyprus-registered Avtoinvest Ltd. (20.61%) and Decodelement Services Limited (2.73%), the German car manufacturer Daimler (11%), the U.S.-based KAMAZ International Managememt (4.25%), and a number of others.

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