Germany's engineering group Siemens may sell its minority stake in Russian firm Power Machines and build a new turbines plant in Russia or India.
SOCHI: Germany's engineering group Siemens may sell its minority stake in Russian firm Power Machines and build a new turbines plant in Russia or India, an executive said on Thursday.
Siemens has been looking to buy control in turbine maker Power Machines but Russian authorities have blocked the deal on grounds of strategic importance and allowed the German firm to buy only a blocking stake of 25 per cent.
"If this tragedy with Power Machines continues and the value of our stake keeps falling, then we could sell our share in Power Machines and build a new great plant," said Siemens' Russian head Dietrich Mueller.
"We are now discussing a question whether to build a big turbines plant in India or in Russia," he told a railway industry conference in the Black Sea resort of Sochi.
Russia has sweetened the pill for Siemens since blocking its goal with Power Machines by clearing a 600 million euro ($806.8 million) deal between the German firm and Russia's state railways to deliver and service trains.
Russia's former power monopoly RAO UES also has a blocking stake in Power Machines and has said it would sell it only to a Russian investor. The sale is expected in the first half of 2008.
"If I were RAO UES I would have sold the stake to the one who offered the highest price," said Mueller.
Russia has drastically limited foreign involvement in many sectors of its economy in recent years, including oil, gas and metals, as part of President Vladimir Putin's drive to create state-controlled champions, which would be able to compete on global markets.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}