Page 122 - RusRPTApr19

Gazprom EnergoHolding (GEH), the utility subsidiary of Russian state- controlled natural gas giant Gazprom, could replace Power Machines of Alexei Mordashov in the joint venture with Siemens - Siemens Technology of Gas Turbines (STGT), Kommersant daily reported on March 11 citing unnamed sources. Power Machines (Silovii Machini) has been under US sanctions since 2018 for being embroiled in supplying four Siemens gas turbines to the annexed Crimea peninsula. In 2018 Mordashov leveraged the events in Crimea to challenge Siemens' role in Russia and asking for state support to launch the production of industrial-scale gas turbines at Power Machines without Siemens' help. Now, the state-controlled GEH will reportedly get 50% in the STGT JV after Siemens will buy out the 35% Power Machines' stake. The JV would work on full localisation of the turbines produced by Siemens. Analysts and industry sources told Kommersant that JV with sanctioned Power Machines was "uncomfortable for Siemens." The demand for the turbines will be boosted by the upcoming state-financed generation capacity modernisation drive of RUB1.35 trillion ($213bn) by 2035. Despite the Crimea embarrassment, Siemens has reiterated its readiness to participate in the modernisation programme and even localise 90% of the production of the turbines, as required by the Kremlin.
Medsi, the medical subsidiary of multi-industry investment holding AFK Sistema, with RUB17.7bn ($276mn) revenues jumping by 52% in 2018, became the market leader in private healthcare in Russia, beating the MD Medical Group (Matj i Detya, MDMG), according to a report by Vedomosti daily. The competition in this private segment is heating up on a declining market, with the birth rate in Russia down by 5% in 2018. MDMG Group posted RUB14.9bn revenues in 2018 under IFRS, seeing revenue growth decline for the third year in a row to 9% (from 28% in 2016 and 13% in 2017). In 2017 another top three clinic European Medical Center (EMC) posted RUB10.7bn revenues, but has not yet published its results for 2018.
122 RUSSIA Country Report April 2019 www.intellinews.com