Now I’m no knowledgable business guru, but Jane’s is reporting that the state owned company that had a stake in Izhevsk, Rostec (which by the way, did you know Kalashnikov Concern also makes boats?) has now sold 51% to a company called Ural Mining and Metallurgical Company. The report states that UMMC previously bought up to 49% of Kalashnikov Concern, in addition the report specifically mentions Alexei Krivoruchko, who is the CEO of Kalashnikov Concern, and who seems to be also connected to the UMMC company. Something that could be happening is that with the sanctions, Kalashnikov Concern could be diversifying its ownership and interests into separate sectors in order to prepare for any financial disaster. Similar to how H&K has a civilian side, and a Defense/LE side with H&K Defense. So if one part of the company suffered a lawsuit or financial disaster, it wouldn’t affect the other part.
Russian state-owned industrial group Rostec is to sell a 51% stake in its civilian firearms manufacturer Izhevsk Mechanical Plant (Izhmeh), it was announced on 9 July.
The shares, which will be newly issued to facilitate the sale, will be purchased by the owners of Ural Mining and Metallurgical Company and railway company Transmashholding: Andrey Bokarev, Iskander Makhmudov, and Alexei Krivoruchko. The price of the purchase is to be determined in an “independent assessment” in the first quarter of 2016.
A similar deal announced in September 2013 saw the same group of investors take control of a 49% stake in Kalashnikov Concern, in a transaction aimed at raising funds to aid the company’s development.