UPDATE: Putin’s spokesman: Government considers Renova’s aid request

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MOSCOW/SOCHI, May 3 (PRIME) -- The Russian government is considering an aid request of multi-industry holding Renova Group, President Vladimir Putin’s spokesman Dmitry Peskov told reporters on Thursday.

Kommersant business daily reported that the company had sent a letter to the government that contained a very long list of suggested support measures ranging from refinancing of loans to a ban on imports of all sodas and mineral water to help the company that was hit by the U.S. sanctions.

“This is in the competence of the government. It was created and formalized for the cabinet of ministers, so I recommend that you ask them. The government is working on this issue, but they have made no decisions yet,” Peskov said.

Saying that some companies use the sanctions to gain state support and solve internal problems is incorrect. “You think that Renova is trying to abuse the situation? Renova, which was hit by these illegal sanctions? I think that is an incorrect question,” he said.

Deputy Energy Minister Andrei Cherezov confirmed that Renova had sent an aid request to the Energy Ministry and the Industry and Trade Ministry.

“Yes, they have (sent a request to us) and to the Industry and Trade Ministry. There is a turbine plant, they have a large facility which had been recently upgraded. They produce atomic reactors, marine and thermal turbines,” he said.

Renova’s Ural Turbine Works will need support including preferences on purchases of its products, Cherezov added.

“Our problem is that foreign producers enter the local market with prices lower than the cost price of products made by our facilities. It makes us uncompetitive in terms of auctions… Russian producers (should) have preferences even if the price for their equipment is 15% higher,” he said.

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