Official: Russia should privatize some Rostec companies

MOSCOW, Mar 10 (PRIME) -- Some subsidiaries of Russian state-run industrial corporation Rostec have to be privatized, President of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin told reporters on Thursday.

“I would privatize Rostec a bit,” he said, adding that it would be sensible to sell some assets, owned by the corporation.

Rostec owns a range of industrial holdings, including Concern Radio-Electronic Technologies (KRET) and Russian Helicopters.

CEO of Russian Helicopters Alexander Mikheyev said in December 2015 that that the company planned to start consultations to find an investor in January–March 2016. Russian Helicopters attempted an IPO but there were no satisfactory bids.

In January, Industry and Trade Minister Denis Manturov said that the ministry planned to sell a 25% stake in Russian Helicopters in 2016 already.

Founded in 2007, Russian Helicopters is one of the world’s leading producers of civil and military helicopters. State defense holding Oboronprom, part of Rostec, holds 98.5% in the producer.

Earlier in March, Rostec announced plans to find an investor for its affiliate bank Novikombank.

Novikombank, which is now in the U.S. blacklist over the Ukrainian crisis, said in January that it was investigated by the central bank, and the regulator said that the quality of the bank’s assets was unsatisfactory.

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