Kalashnikov to become Private Company
Ami Rojkes Dombe
| 15/11/2017
https://kalashnikov.com/en
Rostec has received government approval to sell a 26 percent stake in Kalashnikov, Sergei V. Chemezov, the director of holding company, said on Monday in Dubai.
According to the New York Times, Rostec first suggested the idea of the privatization in February, but it had not received an endorsement from the government until now. At the time, Kalashnikov said that a Russian industrialist named Aleksei Krivoruchko would be a buyer. After the sale, Mr. Krivoruchko will have a 75 percent stake in the company.
It will be interesting to see if the privatization process will have any effect on the sales to the United States. Until the crisis in Ukraine prompted the imposition of American sanctions, the Times reports, Kalashnikov was selling more rifles to the US civilian market than to the Russian military. The company has since tried to sell guns elsewhere to compensate for the lost business. Last month, Kalashnikov signed a licensing agreement to produce one variant of the rifle, the AK-103, in Saudi Arabia.
https://kalashnikov.com/en
Rostec has received government approval to sell a 26 percent stake in Kalashnikov, Sergei V. Chemezov, the director of holding company, said on Monday in Dubai.
According to the New York Times, Rostec first suggested the idea of the privatization in February, but it had not received an endorsement from the government until now. At the time, Kalashnikov said that a Russian industrialist named Aleksei Krivoruchko would be a buyer. After the sale, Mr. Krivoruchko will have a 75 percent stake in the company.
It will be interesting to see if the privatization process will have any effect on the sales to the United States. Until the crisis in Ukraine prompted the imposition of American sanctions, the Times reports, Kalashnikov was selling more rifles to the US civilian market than to the Russian military. The company has since tried to sell guns elsewhere to compensate for the lost business. Last month, Kalashnikov signed a licensing agreement to produce one variant of the rifle, the AK-103, in Saudi Arabia.
