VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon.
We have already met, the three of us, to discuss the purchase of Opel, the European arm of General Motors. General Motors is in a very difficult situation, and its fate will be decided within a few days. The company is popular in Russia, and we hope its industrial affiliates in this country will stay afloat.
As for purchasing Opel stock, I want to make it understood from the start that the Russian Government is not directly involved but approves Sberbank's participation in the transaction. This is primarily because Sberbank is one of the largest creditors of the Russian automotive industry and has long-established contacts with it.
Opel's is, possibly, the largest engineering centre in Europe. It is one of our largest trade and economic partners in the context of the dynamic development of Russian relations with European partners in the preceding years. Germany leads the list of Russia's partners in Europe.
The present situation is complicated due to the economic crisis. However, it provides conditions to diversify our contacts with the leading European countries. We have done a great deal recently to promote energy partnership. Now we have an opportunity to make further steps in industry - in particular, engineering.
It is certainly important how this transaction will affect Russian consumers and manufacturers if it achieves a successful end. By Russian manufacturers, I mean also companies with foreign participation and 100% foreign capital.
The Russian Government has elaborated its own developmental strategy for the automotive industry. The transaction we are discussing should comply with that strategy. Magna is well known in Russia as parts supplier, and I hope it will continue and expand its direct participation in Russian industry.
The troubleshooting plan proposed by such an influential company as Magna has been recognised as the best possible option for investors and, even more so, for Opel employees in Germany and other countries. That is essential. I am interested in it, to an extent, because Opel has two plants in Russia.
As I have said, I am pinning great hopes on the expansion of Magna's presence - in particular, on sharing a part of its knowhow with Russia. I hope it will tell on Russian industrial production.
Let us discuss it in greater detail. I would like to hear the opinion of our Industry Minister first.
Viktor Khristenko: Mr Putin, as you have said, the developmental strategy of the Russian automotive industry is under an essential test of stability and the ability to make progress even during a crisis.
Our foreign partners have certainly made generous investments in Russia -close on $5 billion, and their production is increasing. General Motors is one of such assets, as you have said. This is a difficult time when we might need to restructure some Russian-based assets and the Russian automotive industry might need to acquire new quality. So it is of principled importance to us to see Sberbank as the creditor of our basic car manufacturers coping with these hard times.
In this sense, we think that the prospective Magna-Sberbank transaction will help to restructure particular assets of the Russian automotive industry in the most rational and effective way even at this problem-laden time.
You are absolutely right that Magna is one of the most competent car parts manufacturers in the world. So we think that if the deal is successful, Magna will be interested not only in Russian-based General Motors assets, and in manufacturing some car makes in Russia, but also in broadening its capacity as a car manufacturer in the Russian market for other companies.
This will improve car parts manufacture, which is our weak point. That is why we are actively discussing all aspects of the job with our colleagues. We are sure that we will make the deal when we see that it really satisfies every party's interests in full.
German Gref: Sberbank has been for many years the largest creditor of such companies as Russkie Mashiny, GAZ Group, TaGAZ, and IzhAvto. Sberbank and VTB are the largest creditors of AVTOVAZ and KAMAZ. The entire Russian automotive industry is our debtor, and I think Sberbank accounts for more than half of total loans.
It is vitally important to us now to be sure that the Russian automotive industry is able to become more competitive even in these hard times and, even more importantly, retain stability of production development. It means that we will have our money back, so we are eager to help our clients in the Russian automotive industry to improve their production, become more competitive and so, in the final analysis, pay their debts.
In this instance, we are something of an agent to help company proprietors and the Government to restructure the industry.
We have not yet discussed all aspects of the transaction, but we have several weeks to do it.
We have spent the weekend in dynamic consultations. Magna, Sberbank and General Motors will sign the first protocol of intent within a few days. US and German Government representatives will also initial it. This protocol takes into account all interests which we have formulated and which the Industry Ministry has enlisted for us as desirable.
Vladimir Putin (to Siegfried Wolf, in German): Would you like to add anything?
Siegfried Wolf (as translated): I am glad that the transaction will help us to modernise the Russian automotive industry. It is our ambitious goal and major challenge to do everything possible within the next two or three weeks to promote its signing. For that, we have certain details to coordinate before its final signing in September.
Parts suppliers and car manufacturers have had their talks under the supervision of the Industry Minister and his team. I am sure we have a unique chance to ensure substantial progress of the Russian automotive industry.
