Kommersant: "Vladimir Putin switches to manual steering"
Emergency nationalisation of NPO Saturn
Andrei Kolesnikov, Rybinsk
Amid the global financial crisis, Russia nationalised its first company yesterday. Kommersant correspondent Andrei Kolesnikov thinks Vladimir Putin did this publicly to demonstrate what can be expected from the Russian Government in the future.
Vladimir Putin was wearing a black shirt and a black suit as he entered the production facility of the Russian-French joint venture VolgAero, most likely to mourn the death of Pyotr Latyshev, the presidential envoy to the Urals Federal District, reported this morning.
An employee was machining a part with a tool that resembled a dental drill. I asked, "Has the global financial crisis affected you?"
It's the Saturn crisis that has affected us, France's Snecma gives us the money to produce parts, while our company doesn't give anything, the worker said.
However, the worker wasn't very well informed. Sergei Vakhrukov, the Yaroslavl Region Governor, was able to tell us more at the meeting. He said the general situation at Rybinsk-based aircraft engine manufacturer NPO Saturn, which produces engines for civil and military aircraft, as well as for other equipment with names too hard to pronounce, was quite fair.
Some issues, however, need joint decisions, the Governor admitted.
It was soon revealed that the enterprise was bankrupt and that the governmental delegation led by Vladimir Putin, which arrived in Rybinsk the day before, was there to either close down or to rescue the business.
During the meeting, Vladimir Putin sat between Tatyana Golikova, Health and Social Development Minister, and Industry and Trade Minister Viktor Khristenko, as if he were giving away the bride, please do not misunderstand me.
Despite large credit resources, the enterprise can take on no more credit and is planning to cut 4,000 jobs, the Governor said. I am sure, however, that the possible measures we have discussed can be taken, and the enterprise therefore saved, the official added.
Vladimir Putin nodded. It looked like the meeting was to demonstrate that the Government is destined to solve any problem that it comes upon, hence the presence of Deputy Prime Ministers Sergei Sobyanin, Igor Sechin and Dmitry Kozak, and a number of Deputy Ministers.
It looked as though the entire weight of the state's authority had descended on bankrupt NPO Saturn, and if not careful, could "wipe it out" by mere recklessness.
There was more than meets the eye, however, as a brief opening speech by Vladimir Putin indicated that the state values this enterprise.
The financial crisis had reached Saturn rapidly. The Government made good use of the opportunity, which seemed to be both inexorable and cynical at first glance. Vladimir Putin announced that majority shareholders had decided to sell their shares to the minority shareholder, the state, which had previously owned as little as 37% of the stock. They will sell their shares "at market price," Vladimir Putin added.
It was not made clear however if that meant the current price, the price in effect a month ago or the price a month from now.
It is notable that the business had been pursuing a risky financial policy by taking out large loans abroad... the tests and certification of the engine for the Sukhoi Superjet 100 airliner, performed on Saturn premises, were eventually in danger. The VTB bank (its president, Andrei Kostin, was present at the meeting. - A. K.) will refinance the entire debt load, Mr Putin added. The refinancing plan has to be outlined in the shortest possible time. Additionally, the Rosnanotech corporation has already prepared a modern nanomaterial production plan for Saturn and is prepared to guarantee a 1 billion rouble-portfolio of orders.
After nationalisation, Saturn will be absorbed by Oboronprom, a subsidiary of Rosonboronexport, Russia's state-run arms exporter, and will merge with the Ufa-based Motor-Building Association (UMPO) to form a state-run engine-building corporation.
Denis Manturov, Deputy Minister of Industry and Trade, delivered a speech saying that the enterprise needs three billion roubles to perform routine engine tests. Yuri Lastochkin, CEO and co-owner of NPO Saturn (Mr Putin had guaranteed job preservation to the plant's top managers) said that in fact the necessary amount was four billion roubles.
Vladimir Putin agreed that at least 4.5 billion roubles is necessary for European-standard engine certification. Mr Khristenko was the one to "win" this "auction," saying that, according to his calculations, the figure is closer to five billion roubles instead of 4.5 billion.
No one else appeared to be willing to "raise the price" though.
Customer representatives delivered their speeches, agreeing that the enterprise's products are unique, supermodern and highly demanded by clients.
A 10 billion rouble portfolio of orders is guaranteed, another 15 billion roubles worth is possible, Mr Putin concluded.
As for the refinancing, it would be helpful to resolve this issue with plant management tomorrow, Mr Kostin noted.
So, yesterday Russia nationalised its first enterprise as the result of the global financial crisis. The Government has shown that it is switching to the "manual steering" of the economy after constantly promising to do so. It was now clear to me why the Prime Minister was walking around the shop floors with such keen interest before the meeting started. He already knew that the plant was his.
