OREANDA-NEWS. November 20, 2008. The European Bank for Reconstruction and Development is investing US5 million to acquire a 26.6 percent stake in Russia’s VYSO group to support its expansion within the country and allow it to develop new high-technology anti-corrosion services, reported the press-centre of EBRD.

The Urals-based group, founded in 1992, provides protection for both metal and concrete surfaces and counts Lukoil, Norilsk Nickel, Transneft, and UMMC, as well as the operators of hydroelectric power stations, among its main customers.

The EBRD is proud to make through VYSO yet another investment in the real sector of the Russian economy and contribute to its diversification, said Eric Rasmussen, the Bank’s Director for the Corporate Sector in Russia.

This project should encourage the consolidation of this highly-fragmented sector and the EBRD sees it as making an important contribution to the adoption of international corrosion protection standards by Russian companies, Mr Rasmussen added.

The market for these services is under-developed in Russia but has recently been growing fast and is worth an estimated US 600-700 million a year.

The EBRD investment will give the Bank the right to be represented on the Company’s Board of Directors.