State-owned stake in USC to be transferred to VTB
Russian President supported the proposal
The state-owned stake in the United Shipbuilding Corporation will be transferred to VTB. The proposal was advanced by the Government of the Russian Federation, Russian President Vladimir Putin said at the meeting with President and Chairman of VTB Bank Management Board Andrei Kostin. The transcript of the meeting is published on the official website of the Kremlin.
“After thoroughly considering the issue, the Government of the Russian Federation advanced a proposal to transfer the state-owned stake in the United Shipbuilding Corporation to VTB. I support this proposal. I know that our colleagues have discussed this with you and considered it in advance,” said Vladimir Putin.
As Andrei Kostin said at the meeting the proposal “was indeed quite unexpected”. “But I can say that we know the company well, have followed it from its incorporation. We work closely with the corporation as well as with the enterprises that are part of the corporation, so we are aware of their problems, especially those concerning financing. Therefore, I am sure that, with your support, we will cope with this task and will make every effort to resolve all the problems. There are many issues there, especially given the current situation, but I believe they are solvable,” he said.
According to the President,” here are many problems and many questions, but it is a viable business, and is generally gaining momentum”. He emphasized that there are issues that require special attention, including from the bank's specialists. “They need to do some calculations to decide on the company’s financial turnaround. I know this cannot be done without the Government’s support, so of course, the Government will provide it,” added Vladimir Putin.
The President expressed his hope that VTB specialists would cope with all the problems. “This is certainly a challenge, without exaggeration; this is serious, you will be dealing with an entire industry,” he emphasized.
According to the USC comment, trust management of shares does not change the form of ownership or obligations under the current contracts, including the implementation of state defense orders and the civil shipbuilding orders. “Shipbuilding is now in a phase of growth. That requires financial stability and investments in the modernization of USC production facilities consolidating the bulk of the domestic shipbuilding complex,” added the press center.
United Shipbuilding Corporation (USC OJSC) is the largest shipbuilding company in Russia. It was set up in 2007 with 100% federal ownership. The holding comprises about 40 companies and organizations (major shipbuilding and shiprepairing companies as well as leading design bureaus). Currently, USC consolidates the bulk of the domestic shipbuilding complex. The Russian market is the main focus of the state corporation though it also exports its products to 20 countries worldwide.
