MOSCOW, April 1 (RIA Novosti)
Russia to transit U.S. military cargo to Afghanistan / Russia not set to join OPEC / France's Alstom to share technology with Russian engineers / Electrolux leaves Russia over cutthroat competition /
Kommersant
Russia to transit U.S. military cargo to Afghanistan
Russian President Dmitry Medvedev and U.S. President Barack Obama are expected to hold talks today ahead of a G20 summit in London aimed at finding ways to tackle the global financial crisis.
The summit officially begins on Wednesday evening at a reception at Buckingham Palace.
The United States earlier used the Manas Air Force base in Kyrgyzstan to support NATO operations in nearby Afghanistan, but in February the former Soviet republic announced its plans to close the base.
Russia, which had been prodding the Kyrgyz authorities towards closing the base for the past few years, has offered the U.S. assistance in organizing cargo transit.
According to the business daily, President Medvedev may put the idea to President Obama today.
"We are not set against the issue of U.S. cargo transit. We are ready to sign a separate agreement on it," said a source in Medvedev's administration. He said Russia could allow the transit of U.S. troops and cargo across its territory and has even prepared a security plan for it. The source said the troops and cargo could be delivered by air and rail.
If Washington accepts the proposal, Russia will handle nearly all of the Afghan transit, which will make U.S. attempts to find alternative partners in Central Asia senseless, and will at the same time make Washington dependent on Moscow for its operation in Afghanistan.
Gazeta.ru, Nezavisimaya Gazeta
Russia not set to join OPEC
Russia, the largest oil producer outside OPEC, is not ready to accept membership in the group. , "It would be irresponsible for Russia to join OPEC because we can't directly regulate the activity of our companies, nearly all of which are privately owned", said Deputy Prime Minister Igor Sechin. Russia's earlier promises to consider OPEC membership were a political move it no longer needs, analysts suggest.
Until recently, Russian officials had not shown so many scruples about taking the "irresponsible" step: a number of top government members, including President Dmitry Medvedev, said in late 2008 they "did not rule out" full membership of the cartel.
However, no one in the Kremlin seems to have been serious about joining up, analysts say.
"No one has made any commitment," said Natalia Milchakova, a chief analyst at the Otkritie financial corporation. "Political factors can not be underestimated either. It would be extremely unwise to talk about joining OPEC in the run-up to the Russian president's meeting with U.S. President Barack Obama and the G-20 summit in London."
"Russia would have to comply with OPEC's decisions, and the group is led by Saudi Arabia, known as the key ally of the United States," said Dmitry Abzalov, an analyst at the Center for Current Politics think tank.
Statements concerning Russia's possible accession to the group were part of bargaining as Moscow was trying to win over potential partners in the planned "gas OPEC," as well as to lobby for certain joint projects in the oil sector, the analyst added.
Having failed to push the projects through in the end, Russia must have decided to drop the "OPEC accession game," at least at this stage.
In addition, Sechin's statement contains signals to major Russian market players. "The deputy prime minister has thus indicated that the government is not planning to pressure oil producers or control their operations, let alone nationalize them," said Dmitry Alexandrov, an analyst with the Financial Bridge brokerage. It is also a signal to investors - "Please come and bring your money, the government is tame and complacent," he added.
Vedomosti, RBC Daily
France's Alstom to share technology with Russian engineers
Russian rail equipment maker TransmashHolding (TMH) has finally found a strategic partner willing to share its expertise - French company Alstom, which has agreed to buy 25% plus one share in the Russian producer.
TMH's founders and key shareholders, Iskander Makhmudov and Andrei Bokarev, are even ready to lose control of the company for the sake of an alliance with Alstom.
Alstom is buying 25% plus one share in Dutch-registered Breakers Investments B. V., the only beneficiary of TMH, the Russian equipment manufacturer said in a statement Tuesday.
Rail monopoly Russian Railways (RZD) currently holds a blocking stake in Breakers, while 75% minus one share is jointly held by Makhmudov and Bokarev, owners of Kuzbassrazrezugol, through their investment vehicles, and shareholders of railway operator Transgroup AS.
RZD is not planning to sell its stake, representatives of the monopoly and of TMH confirmed. Therefore, this means it is Makhmudov and partners who are selling the shares. As a result of the deal, their stake will shrink to 50% minus two shares.
Bokarev said Alstom will only take control of TMH in three years' time. The French have made an upfront payment of $75 million after signing an option and will pay the remaining amount at a price that will take into account the Russian company's EBITDA over the 2008-2011 period. The shareholders are mainly interested in Alstom's new technologies, he added.
A source close to TMH said that Alstom, after it has made the upfront payment, would be able to put two representatives on the TMH board. The company will have to pay as much as RZD (9.3 billion rubles in December 2007) for the blocking stake, he added. Mikhail Pak from Metropol agreed, estimating a 25% stake in TMH at $250-$300 million.
TMH has been looking for a strategic partner for more than a year, negotiating with German Siemens and Canadian Bombardier. But both companies eventually withdrew from the deal.
Pak said Alstom recently encountered falling demand on its traditional markets, while the wear and tear rate of Russian rail rolling stock has reached 65%-70%. Mikhail Lyamin from the Bank of Moscow said Alstom's investment would reap dividends in about five years.
RBC Daily, Vedomosti
Electrolux leaves Russia over cutthroat competition
The Swiss producer of home appliances, Electrolux, announced yesterday that it would close its plant in Russia in the second quarter of 2010 over intense competition on the market.
Commissioned in the summer of 2005, the plant has an annual capacity of 300,000 Electrolux and Zanussi washing machines. Its construction cost the company 9 million euros.
Electrolux is a global leader in home appliances and appliances for professional use.
Enderson Guimaraes, head of Major Appliances Europe and Executive Vice President of AB Electrolux, said: "The competition is tough in the Russian market of household electric appliances. Unfortunately, our St. Petersburg plant cannot make products at competitive prices."
According to the Association of Trading Companies and Manufacturers of Consumer Electronic and Computer Equipment (RATEK), Electrolux is one of Russia's top five producers of home appliances.
RATEK's Anton Guskov said the decision by the Swedish company was "first reaction to the crisis. We must now do our best to prevent other companies from emulating its example."
Guskov said production in Russia could be profitable if the duty on imported components were cut to zero from the current 5%-15%. Otherwise, assembling equipment in Russia will cost as much as importing it from China.
The rivals of Electrolux who also have plants in Russia are so far not leaving the country.
Mikhail Platonov, commercial director at LG Electronics Rus, said: "We are working to capacity, and it would be unwise to reduce output now since some players are losing their positions in Russia."
Natalia Bobrova, advertisement and PR manager at Bosch und Siemens Hausgerate GmbH, said: "BSH plans to commission a second line for the production of fridges and to increase the floor space of its logistic center, with investment of 40 million euros."
Neil Tunstall, head of Indesit Company in Russia, CIS and Baltic States, said they were not planning to close their Russian plants. Moreover, Indesit is planning to renew and increase the line of products made at its Lipetsk plants, he said.
RIA Novosti is not responsible for the content of outside sources.
