The Kalashnikov Group plans to sell a 49 percent share to private investors. The Russian largest weapons producer, whose products are popular all over the world, will sell a stake of its assets. State shareholder Rostec, which controls the company, has started preparing for the deal, the cost of which is about 1.3 billion rubles. The major condition of the sale requires the buyers to be local investors. To complete the purchase, Kalashnikov Corp. is going to issue additional shares worth 1.3 billion rubles, which will be acquired by a joint venture set up by Andrei Bochkarev and Alexei Krivoruchko, who have agreed to use this money to pay off debts of the arms producer to employees and partners as well as to repay its loans. In accordance with the ratified modernization project, the defense constractor will raise 2.4 billion rubles in additional investments within two years. The Ministry of Industry and Trade has approved the sale as well as President Putin blessed it. The Kalashnikov Group includes Izhevski Mekhanicheski Zavod, Vyatskie Polyany Machine Building Plant Molot, NITI Progress, and some other small-arms and ammunition manufacturers.
