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Russia’s Rostec may sell another 25% stake in Kalashnikov to private investors

December 27, 2016, 13:33 UTC+3 MOSCOW

In the fall of 2013, Rostec’s senior officials decided to transfer 49% of the shares in the Kalashnikov Concern to private investors

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MOSCOW, December 27. /TASS/. Russia’s Rostec State Corporation hopes to sell 25% more stakes in the Kalashnikov Concern, Russia’s largest arms manufacturer, to private investors next year, Rostec CEO, Sergei Chemezov, said.

"Kalashnikov is operating successfully, too. We hope that next year we will sell another 25% stake to the same investors - Andrei Bokarev and Alexei Krivoruchko," he stated.

In the fall of 2013, Rostec’s senior officials decided to transfer 49% of the shares in the Kalashnikov Concern to private investors, Alexei Krivoruchko, who took over as Kalashnikov CEO and Andrei Bokarev, President and co-owner of Transmashholding, one of Russia’s biggest machine building companies. Under this deal, Krivoruchko and Bokarev will invest 2.6 bln rubles ($47 mln) in the company’s development. Rostec will retain the controlling stake in Kalashnikov after the deal is inked.

The Kalashnikov Concern was registered in August 2013, formed through a merger of two enterprises located in the city of Izhevsk (in the Urals) - Izhmash and the Izhevsk Mechanical Plant, which are part of the Rostec corporation. Products manufactured by Kalashnikov are exported to 27 countries, including the US, the UK, Germany, Norway, Italy, Canada and Thailand.

Refinery in Uganda

Chemizov also said Rostec had dropped its plans to construct a refinery in Uganda.

"We’ve closed down the topic. First, the oil price is not very high, and the refinery planned to be constructed will not pay off. Regarding the terms that were initially offered, the Ugandans renege on them. The project has turned out unprofitable, that’s why we abandon it," he said.

On July 1, Rostec said it suspended its participation in the refinery construction project in Uganda.

In February 2015, Rostec entered a consortium to construct the first oil refinery in Uganda. The project was estimated at $4.7 bln. The launch of the first stage with a daily projected capacity of 30,000 barrels per day was slated for 2021, and by 2026 the capacity was expected to be boosted to 60,000 barrels per day (more than 3 mln tonnes of oil per year).

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