OREANDA-NEWSDeputy Prime Minister Dmitry Kozak, who oversees the government’s fuel and energy complex, endorsed a proposal by the owner of Power Machines Alexei Mordashov to toughen foreign companies with conditions for entering powerful gas turbines onto the Russian market. The decision was made at a meeting last Thursday, July 11th. Two sources close to the participants of this meeting told the Russian media.

In April 2019, Mordashov suggested that the government set a requirement for joint ventures with foreign participation that want to localize gas turbines: 75% + one share should be from a Russian partner, Kommersant wrote, citing sources. “The task of the state is to control this critical technology (gas turbine production) and not to depend on the sanctions legislation of other countries, so control in these enterprises should belong to either the state or a citizen of Russia”, explained the essence of the proposal of Mordashov in an interview with the media general director "Power Machines" Timur Lipatov.

But Power Machines is not planning to leave the joint venture. "We aren't in a hurry", said Lipatov in an interview with the media. According to him, a possible government decision to limit the presence of foreign companies in the gas turbine market for Siemens is a country risk, “no one warned us that this market will grow”.

In 2018, Power Machines came under sanctions due to the fact that the company supplied the Rostec turbines, which then sent them to the Crimea. Then the relationship of old partners went wrong, Mordashov said that the Russian company would most likely have to leave the founders of the joint venture. Now these plans have been postponed, but Lipatov emphasized that Power Machines aren't going to solve issues on the distribution of shares in a joint venture through government restrictions.