Putin backs Sechin proposal to hand Zvezda shipyards to client consortium
VLADIVOSTOK. Aug 30 (Interfax) - Russian President Vladimir Putin has given his general backing to a proposal by Rosneft President Igor Sechin transfer responsibility for the construction of the Zvezda shipbuilding complex to a consortium of customers.
"If everybody's in favor we'll do it. The question is not to overburden the potential future consortium with complicated elements which would sink the whole construction but at the same time to give them certain obligations regarding cooperation and capacity utilization," Putin said at a conference devoted to civilian ship building.
Putin gave until September 30 to draft the paperwork concerning the transfer.
"We're prepared to do this in three days," Sechin Sechin said at the meeting. He said, though, that he needed a decision by United Shipbuilding Corporation on the sale and valuation of Zvezda so that process did not drag on.
"Fine, do it in three days then. If you don't manage in three days then I should have this on my desk within a month," Putin said.
Sechin made the proposal earlier at the conference. "We've expressed the proposal and we ask that you support the transfer of responsibility for the center's construction to a consortium of customers, financial and technological partners. We're asking you to give the order," Sechin said.
"That proposal is not unreasonable," Putin responded.
The Russian president urged the parties involved to focus on making the shipyard modern, high-quality, and competitive.
"If this consortium consists of potential clients, it needs to be done with maximum efficiency so we get an actually functioning, modern shipbuilding center of a global level and class in the Far East," Putin said.
Possible consortium members, Sechin said, included Rosneft, General Electric, Parker Drilling and Gazprombank .
"Rosneft will put the orders together, Gazprombank will organize the consortium's work in general, and accompany this with funding, and there will be technological partners which would transfer there competencies - General Electric, Parker Drilling and Korean Shipyards," Sechin said.
He said the complex might be transferred to the consortium in its entirety or sold with the state preserving a golden share or option to buy it back.
The Russian president said the consortium members needed to be decided on and that he thought United Shipbuilding Corporation ought to stay in the consortium. "We need to think about it, in what capacity, to what extent - a golden share or blocking stake. That's for you to decide in dialog with possible concession holders Rosbank , Rosneft, with Sovcomflot," Putin said.
It is also necessary to think about the nature of relations with other shipyards in the region, Putin said.
"It has to be clear from the outset that these enterprises will be working in production cooperation, and as military orders decrease they will be filled more and more by orders of a different nature," he said.
Russian Industry and Trade Minister Denis Manturov said his ministry generally backed this initiative on the condition the consortium would be Zvezda's main client.
