Source Pravda.Ru

Government to decide fate of Interros-Siemens joint venture

The people involved in the deal to create a joint venture between Siemens and Interros do not know what the Russian government's decision will be.

"There is no final political decision," a source close to the deal said. "The people who attended the meetings were not at all of the entire political elite."

On July 23, Interros, a Russian holding company, Siemens announced the creation of a joint venture that owned 71% of Silovye Mashiny shares. Interros will possess 50% plus one share of the future enterprise and Siemens will control 50% minus one share.

According to the source, the government was possibly against Siemens purchasing 71% of the Silovye Mashiny, so the two parities "decided on a milder form" (the creation of a joint venture).

The press service of the government told RIA Novosti that at one of its sessions the government discussed the forms of cooperation between Siemens and Interros (the main shareholder-71% - of Silovye Mashiny. "This question was discussed at a working conference," a spokesman for the press service said, "but it is too early to comment on it in detail."

The Federal Anti-Trust Service told RIA Novosti that Siemens did not send in an application to the service concerning the purchase of the new joint venture.

"The company needs to send in an application to purchase the shares of the joint venture, however, this has not been done yet," Irina Kashunina, the head of the public relations department of the Federal Anti-Trust Service, said.

At the same, according to her, Siemens had not retracted its application to purchase 71% of Silovye Mashiny. "A decision on this matter will be made before August 5," Ms. Kashunina said.

According to Alexei Grigoryev, the director of Siemens communication, the process of increasing Siemen's share in Silovye Mashiny will be done in close cooperation with the Russian authorities.

"We are conducting probing negotiations with Silovye Mashiny," he said, "and are discussing possibilities and options of closer partnership. This process will go on in close cooperation with the Russian authorities."

Mr. Grigoryev said that currently, Siemens only controlled 4.4% of the company.