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fourth largest in the country. It operates over 1,300 pharmacies in under brands 36.6, Gorzdrav, A5, and others. In September 2018 the pharmacy chain said it would be preparing an SPO. Altus Capital acquired almost half of the 4.4bn shares worth RUB22.1bn issued in May 2019 for about RUB10.2bn. The funds raised would be used to investment projects and operational activities. Altus Capital is a former investment branch of UFG Capital, which was sold in the beginning of 2017 and is reportedly controlled by one of the UFG partners Dmitry Klenov. The shareholder structure of the pharmacy chain has not been disclosed. Vedomosti daily reports on June 13 that Altus has reportedly bought more shares in 36.6 from other shareholders. 36.6 has been consolidating its share of the market for the last couple of years. In June 2015, it took over pharmacy chain A.V.E. Group. In August 2016, 36.6 acquired the Russian division of major pharmaceutical distributor Walgreens Boots Alliance RUB2.4bn ($37mn). 36.6 and A5 announced their merger in January 2016.
German pharma giant Buyer put the production of anti-inflammation medicine Neksavar with Saint Petersburg-based Polisan on hold due to an alleged breach of its patent by a Russian competitor, Kommersant daily reported the sources in the company. Reportedly, Russian company Nativa produces an analogous generic drug, which also profits from being on the state medicine procurement list. Bayer producer three other drugs at the Polisan facilities and invested over RUB1bn in localisation. Bayer has had problems protecting its patents and technology in Russia in the past. In February 2018, Bayer sued the Federal Antimonopoly Service (FAS) and threatened to pull out of Russia if the regulator did not approve its $66bn acquisition of Monsanto, following the demands of sharing technologies for seed selection and digital farming solutions with Russian companies.
Russian steel tycoon Alexei Mordashov will split his sanctioned machinery and engineering business Silovie Mashini (Power Machines) into four entities, with part of the assets transferred to a holding headed by him personally, Reuters reported on May 31 citing Sevegroup consolidating Mordashov's assets. Power Machines will be split into four divisions: large- scale generation, small and medium generation, heat equipment, and electric equipment. Reportedly, the decision to split the assets is not related to the sanctions, sources close to the company said. Since 2018, Power Machines (Silovie Machini) of Mordashov and Tekhnopromexport have been under US sanctions. Recent reports claimed that being under sanctions could hurt Power Machines chances for participating in the state programme of supporting gas turbine production, with localised Siemens turbines being more likely to profit from state support. A subsidiary of Gazprom - GEH or GazpromEnegroHolding – has squeezed out sanctioned Mordashov and formed a new domestic joint venture with Siemens, according to reports. The timing of new partnership with the state giant came just ahead of the announcement on the state support programme, and did not seem accidental. Power Machines is Russia's main producer of equipment for heat-, atomic-, and hydropower plants, with orders of over $5.4bn as of end of 2017 and share on Russia and CIS market of over 70%. However, when it comes to gas turbines, there is no competitive domestic alternative to turbines supplied by Siemens. Currently 50% of Russia's electric energy is being generated at gas power stations.
113 RUSSIA Country Report July 2019 www.intellinews.com