Tatarstan government divests its share (240 words)

Published: 8/31/2000

According to the State Property Committee of Russia (Goskomimuschestvo, or GKI), Sukhoi Advanced Technologies, the division of Sukhoi responsible for producing high-performance aerobatic aircraft, is going to invest in OKB Sokol in Kazan. This is an entity previously owned by the Tatarstan government, which has undertaken the privatisation 'in order to use advanced technologies and create favourable conditions for investments'. OKB Sokol was established in 1959 for the design of remotely piloted aircraft and target drones, including the Dan target system and M-392 drone. The privatisation will involve the reduction of the state holding to 25% plus one share with employees holding 5% plus one share. Sukhoi, in return for their 70% of the company will invest 10m rubles, which will come from Federal funds, and vest the new company with the rights to the aerobatic aircraft, the Su-29 and Su-31, valued according to reports at 24m rubles. The new entity will also inherit the debts of the old, but according to reports, is in discussion with the regional affiliate of the Pension Fund of Russia regarding its restructuring and a deal is expected. The decision to place production in Tatarstan will come as a disappointment to Armenia, which was reported to be the possible location of the aerobatic aircraft production at Hrazdananmash, although there remains the chance that some production may still go to Armenia.

Article ID: 2044