8 Feb 2024 09:35

Russia to give Rostec 25.5% stake in Astrakhan Port to develop exports to India, Iran

ASTRAKHAN. Feb 8 (Interfax) - Russia will transfer a 25.5% stake in PJSC Astrakhan Port to state corporation Rostec in order to increase exports to India and Iran, according to a draft presidential decree posted on the regulation.gov.ru federal website on February 7.

The document gives instructions to adopt the "proposal of the government of the RF to transfer 25.5% of federally owned shares in PJSC Astrakhan Port to State Corporation for Promotion of the Development, Manufacture and Export of High-Tech Products Rostec as an asset contribution of the Russian Federation," and orders the government "to ensure the implementation of measures prescribed by Point 1 of the current decree within six months."

A memo attached to the draft decree said that Rostec's tentative proposal is supported by the Industry and Trade Ministry and intended to carry out a project to export agricultural and other Russian products to friendly countries (Iran and India).

Rostec will be given an equity stake in port infrastructure "with the goal of increasing cargo traffic between Russia and Iran and developing the strategically important North-South international transport corridor," the document said.

"The most effective port for the project in Russia's Caspian basin is Astrakhan Port. Given that the majority shareholder of the company is a subsidiary of Iranian state company IRISL, it makes sense to also bring in a state company (corporation) on the side of the Russian Federation to develop the asset and expand its capacity," the document said.

These goals are consistent with the corporation's role in strengthening the economic and transport interconnectedness of Eurasia, including through the rapid launch of the North-South international transport corridor, the document said.

Astrakhan Port, one of the largest enterprises of its kind in Astrakhan Region, has 14 terminals and capacity to handle about 12 million tonnes of cargo annually. The port handles all types of general, bulk and container cargo, and also has passenger terminals.

Iran's Nasim Bahr Kish owns a 53.0% stake in Astrakhan Port and Russia's Federal Property Agency holds 25.5%, according to a list of affiliates as of December 31, 2023.