Putin orders govt to study situation around Bashkir Soda Company

MOSCOW, Aug 26 (PRIME) -- Russian President Vladimir Putin on Wednesday ordered the federal government and the government of the republic of Bashkortostan to tackle out the situation around Bashkir Soda Company.

“It does not seem that the goal of shareholders today is the long-term development of this company, it looks like something else – pumping out funds at any cost and in as large volume as possible. I ask the Russian government, together with the leadership of the republic, to study the situation in detail, to propose a solution,” Putin said at a meeting with government members.

In mid-August, local residents and environmental activists protested near the Kushtau shihan against Bashkir Soda Company mining in the area. The head of the republic, Radiy Khabirov, promised that all the work on the mountain would be suspended until a compromise is found.

Putin also ordered the Prosecutor General’s Office to check the legitimacy of the reduction of the state stake in the company.

He said that in early 2013, “in an absolutely miraculous way,” through the company’s merger, the state stake in Bashkir Soda Company had been diluted and reduced below controlling one.

“The government had 62%, and suddenly it became 38%. And as a result, priorities of the company’s work have sharply changed,” Putin said.

The company is now private, and its revenue does not remain in the region, but goes to offshore firms, Putin said.

“The controlling stake of Bashkir Soda Company belongs to individuals. The money earned by the company is practically not invested in development, it does not remain in the region. With a total revenue of 45 billion rubles in 2019, only 2.5 billion rubles went to investment purposes. Where is the money? It is known where – offshore,” Putin said.

The company’s profit goes to accounts in France and Switzerland or to Cypriot offshores, the president said.

“The money goes to where the shareholders partially live – or to Cypriot accounts, to France, to Switzerland. Of course, you can live anywhere, we are a free country. But if you work here, in Russia, make money here, then you need to think about people who work at your enterprises, need to think about future jobs, about the social sphere, about infrastructure,” Putin said.

(74.5126 rubles – U.S. $1)

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