EURASIA INSIGHT
1/28/09
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Russia will cancel Kyrgyzstan’s debt of $180 million in return for a 48 percent slice of Dastan manufacturing plant. Dastan produces medical equipment and heaters for commercial use, and torpedoes for the Russian navy.
The Kyrgyz State Property Committee currently holds 38 percent stake in the company, the rest is owned by private shareholders. Dastan recorded a profit of $2.85 million in 2007, according to its most recent financial filings.
The debt-for-assets agreement was announced following a meeting in Moscow involving Kyrgyz President Kurmanbek Bakiyev and Prime Minister Igor Chudinov and Russian Deputy Prime Minister Igor Sechinym and Sergei Shmatko, Russia’s energy minister, the 24.kg news agency reported January 28.
Kyrgyz and Russian leaders also discussed a Russian aid package worth $450 million, two-thirds of which would consist of soft loans with low interest payments, according to the news agency report.
Posted January 28, 2009 © Eurasianet
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