Rostec to attract Asian funding for big projects in Pakistan and Uganda

Russia’s hi-tech state corporation plans to sell stakes in Russian Helicopters and KRET (Concern Radio-Electronic Technologies) in 2016, company's CEO said.

Russia’s state hi-tech corporation Rostec may attract Asian funding for such big projects as Udokan, a gas pipeline in Pakistan and a refinery in Uganda, Chief Executive Officer Sergey Chemezov told TASS.

"So far we don’t need big funds, we’ve got sufficient local (funds), which we receive by using local capital market and raising the money flow generated by Rostec holdings. Besides, Russian investors are interested in our enterprises. If we speak about global projects we’ll turn to Chinese or Indian partners. This concerns massive projects, such as Udokan, or the construction of a gas pipeline in Pakistan, or a refinery in Uganda where foreign investments will be used," he said, adding that "there’ve already been some preliminary contacts."

Rostec plans to sell stakes in Russian Helicopters and KRET (Concern Radio-Electronic Technologies) in 2016, Chemezov also said.

"A decision has already been made to sell stakes in Russian Helicopters and KRET. Since those are defense companies Rostec will clearly keep controlling stakes. We’ve been allowed to sell 49% stakes in both holdings to any investors by the leadership of the country," he said.

According to Chemezov, Rostec will not sell a 49% stake in Russian Helicopters all at once now amidst a complicated market situation. However, he added, "we can sell a 49% stake in KRET."

Russia’s state hi-tech corporation plans an annual revenue growth of 17%, Rostec CEO said. 

Rostec plans to set up a bank as a successor of Novikombank (part of the corporation) for financing industrial projects, company's CEO said.

"According to preliminary data, revenue growth against 2014 will amount to over 20%. At the same time, growth of 17% was planned. We are currently using the "low base" effect, when holdings have significant internal resources to improve operational efficiency and reduce costs. Nevertheless, I understand that it will get more difficult, because we will need to enter new highly competitive markets with appropriate production. I am not sure that we can achieve the same growth in the future. However, we set this task ourselves - to increase revenue by 17% each year. If we grow at such pace, we expect to enter the five largest engineering holdings in the world," he said.

"A decision has been made to recapitalize Novikombank. We plan to merge with a number of other banks over the long term in order to form a large industrial bank," Chemezov  added.

First published by TASS.

All rights reserved by Rossiyskaya Gazeta.

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