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VLADIMIR PUTIN

Media Review

30 june, 2011 13:03

Izvestia: “Front” line reaches the private sector"

Magnitogorsk Iron and Steel Works announced on June 29 its intentions to join the Russian Popular Front. Viktor Rashnikov, who is worth $11 billion according to Forbes, owns an 86% stake in the company.

Rashnikov's enterprise is the first private business to join the Front. MTS, VimpelCom, and UTair have declined to do so. VimpelCom cited its own corporate ethics code to explain why it can't joint. For MTS joining the Front would mean a violation of the rules of the New York Stock Exchange where its shares are traded. The NYSE prohibits listed companies from supporting political organisations. UTair said it wants to respect its clients, who might oppose the Front.

The state-owned companies Russian Post and Russian Railways have agreed to join the Front but are not officially registered as members. Russian Post told Izvestia that it is still deliberating how exactly it will join the movement.

Magnitogorsk Iron and Steel Works (MMK) joined the Front on the initiative of the public organization The Union of Young Steel Workers whose activists distributed leaflets among workers. The Union's Chairman Alexei Bobrakov told Izvestia that the 240 delegates from MMK's manning units represent the plant's 20,000 workers. "We suggested joining the Front, as every worker wants their country's economy to be stable," Bobrakov explained. The aim of the Front is to unite healthy elements of society and promote youth initiatives.

Some of these initiatives will be probably discussed with Vladimir Putin if he comes to Magnitogorsk in the middle of July to attend the commissioning of the new Mill 2000 cold rolling complex. "We plan to discuss some of our numerous suggestions with the prime minister," Bobrakov said.

The government has paid considerable attention to the enterprise. Putin visited Magnitogorsk in 2009 for the launch of the Mill 5000 cold rolling complex. Several months ago, President Dmitry Medvedev held a meeting of the Commission for the Modernisation and Technological Development of Russia's Economy there. Now, MMK has openly displayed its loyalty.

The question is whether the plant and its head are ready to make a financial contribution to the Front. This is important, as the Front does not receive government funding but is sponsored by organisations like the Strategy-2020 Foundation, as well as by individual members. An MMK spokesperson told Izvestia that "the financial question has not been raised yet. So far we have just supported the initiative of the Union of Young Steel Workers to add MMK to the Russian Popular Front." Bobrakov was more forthcoming: "It is only natural for a new member to pay affiliation fees after joining."

Dmitry Ivanov