Excerpt from the transcript:
Igor Artemyev: Prime Minister Dmitry Medvedev chaired the meeting of the Government Commission on Monitoring Foreign Investment in Strategic Sectors of the Russian Economy.
The commission approved several interesting deals. The renowned General Electric is completing a global deal to acquire the French holding Alstom, which was deeply involved in the Russian nuclear complex. Today the Government commission endorsed this merger in the Russian Federation with the preservation of the relevant types of work, technology and conditions, and transfer of this technology to Russia. This is a case when technology is remaining in Russia, notably in Rosatom, as a result of a global deal’s endorsement.
The next transaction concerns the well-known Indian company Lupin Limited that is owned by the Gupta family of India. They are going to acquire the famous Russian pharmaceutical producer Biocom that manufactures many generics, medicines for treating cardiovascular, gastrointestinal, nervous system and musculoskeletal disorders, and a large number of anti-microbial and dermatological drugs and medicines for the blood-forming system.
The Indian family is buying 100 percent of Biocom and will develop relevant technology on Russian territory.
The next interesting project involves Japanese investors in Russia’sFar East. The Japanese constructionholding Iida Group is purchasing the company SlavyanskyLesnoi Terminal – the port in Posyet Bay in the south of the Primorye Territory – to develop infrastructure fortimber transhipment.They will export board lumber and produce it for our Far East.
Russia will set certain terms forIida Group in this deal to protect its interests to the utmost, in particular the deliveries of beams and other materials for housing construction in Russia.
Our President met with the Prime Minister of Japan recently and I believe the deal was endorsed at their meeting.
The next deal involves China. Various companies of the People’s Republic of China will acquire 13 percent of the shares of our geological prospecting company Bystrinskoye. The company-controlled depositis among the world’s ten largest copper deposits: 292 mln tonnes of ore containing 2 mln tonnes of copper, 213 tonnes of gold, 960 tonnes of silver and 67 tonnes of magnesium. We expect investment in this project, which will help speed up the deposit’s development.
Question:You mentioned Lupin and Biocom. You spoke about this deal in December.
Igor Artemyev: This deal was planned before and was approved by the Government commission but the Indian side decided to change its business plan – it somewhat reduced the investment because of the economic crisis and had to re-apply to the Government commission to endorse the deal. Nonetheless, the commission approved it.
Question: The Government commission has already approved the purchase of 15 percent of the Vankorneft shares by the Indian ONGC. Rosneft announced recently that it is selling 49.9 percent of its shares to ONGC. Will the purchase of the remaining package of shares be reviewed in addition to this?
Igor Artemyev: The second deal on the purchase of additional shares by the Indian side will also be considered since the Vankor deposit is of strategic importance. The Government has a positive attitude to this deal.
