Barrick Gold increases its share in the development of Fyodorova Tundra
Opening yesterday's meeting of the Commission for Monitoring Foreign Investment in Russia, Prime Minister Vladimir Putin said: "We are to consider several applications for the acquisition of shares in enterprises that develop space and rocket technology and operate in the spheres of transport and the use of subsoil resources." He said that the Commission has recently received about 45 applications from foreign investors seeking to participate in strategic sectors. "In spite of all the consequences of the world economic crisis our partners are still showing a high interest in the Russian economy," Mr Putin said.
Gazeta has learned that the Government yesterday approved a deal to increase the share of the Canadian gold mining company Barrick Gold in the project to develop the Fyodorova Tundra field on the Kola Peninsula. Barrick Gold, which previously held a 50% stake, has availed itself of its option to increase it to 79%. The proven reserves in the field are about 100,000 tons of platinum, palladium and gold ores.
The Commission also approved a deal to buy a share in the Taganrog Ship Repair Plant. In addition to the plant it has a terminal that can handle 1 million tonnes of grain and petroleum products. What is known about the deal is that it involves a company registered in an offshore zone but representing Russian business. In April 2008, the plant's owner, one of the largest grain traders called Yugtranzitservis, announced that it was going to sell its stake. That asset could have been acquired by Rosneft or LUKoil, which have oil refineries nearby, a source in the oil industry told our correspondent.
Gazeta's source did not reveal the details of the deal that would bring foreign capital into a Russian aerospace enterprise on the grounds that the information was confidential. The source merely added that the meeting had issued instructions to the Federal Antimonopoly Service to prepare amendments to the law On Foreign Investment in Economic Entities of Strategic Significance for the Defence and Security of the State within two months. According to the source, the amendments "detailed the procedure of filing investment applications and their consideration".
The law on strategic sectors, which sets restrictions for foreign investors striking deals with the shares of strategic enterprises, has been in force in Russia since May 2008. Such deals need the approval of a government commission.
Apart from the defence industry complex the strategic sectors include aviation, telecommunications, mining in federal areas and others, a total of 43 sectors. According to Mr Putin, the aim of the approval procedure is gain assurance that the potential investor is reliable and in good repute, and that the deal involving strategic assets does not threaten the defence capability and security of the state.
In early October 2008, the Commission approved two transactions with foreign interests: De Beers will acquire 49.99% of Arkhangelsk Geologodobycha and the Swiss World's Wing SA (a branch of the Italian Alenia Aeronautica) is buying 25%+ one share of Sukhoi Civilian Aircraft.
Andrei Biryukov; Maxim Tovkailo