Page 14 - TURKRptJun22

14 I Companies & Markets bne June 2022
Russia hopes Chinese carmakers will help revive Moskvitch brand
bne IntelIiNews
Russia has approached Chinese companies for help re-launching the historic “Moskvitch” brand, according to Vedomosti, which cites two sources with knowledge of the matter.
French car giant Renault agreed to hand over its 68% stake in AvtoVAZ, Russia’s largest car manufacturer, to the Russian state automobile institute. Moscow’s mayor Sergei Sobyanin announced that the government had plans to resume manufacturing at AvtoVAZ under the Soviet-era “Moskvitch” brand, praising the handover as a way of saving Russian jobs.
Moskvitch, which means “Muscovite”, started building its own cars in the 1950s. The brand hoped that its Russian-built models would compete with international car brands. But Moskvitch ceased production years ago.
Reports initially emerged saying that the Russian government had enlisted the help of truck manufacturer KAMAZ to support the Moskvitch operation. Now, Vedomosti reports that KAMAZ
Image: Samara Oblast government Wikimedia Commons.
is seeking the support of a Chinese partner, state-owned carmaker Anhui Jianghuai Automobile Co. (JAC).
KAMAZ reportedly hopes that JAC will provide parts and designs for the new vehicles which AvtoVAZ will build. JAC has previously provided parts for KAMAZ models.
At the same time, Izvestiya reports that Russia’s government is in talks with Chinese car manufacturers BYD and FAW, hoping to secure extra support for the venture.
The Kremlin reportedly hopes to start building the first Moskvitch cars as early as late 2022, but the timeframe seems very ambitious. Renault cited a shortage of components as one of the reasons for its exit from Russia, with supply problems and sanctions complicating the procurement process. AvtoVAZ recently announced that it will keep workers furloughed, as a shortage of parts renders production impossible.
Siemens to wind down Russian operations
Kamila Ibragimova for Eurasianet
German engineering giant Siemens has announced that it “will exit the Russian market as a result of the Ukraine war”, and it is starting the proceedings to wind down its industrial operations and all industrial business activities.
The company said that that “the comprehensive international sanctions, as well as current and potential counter-measures, impact the company’s business activities in Russia, particularly rail service and maintenance”.
As reported by bne IntelliNews, the possible departure of Siemens is one of the most closely watched foreign industrial major pullouts out of Russia due its major role in the supplies of gas turbines. Siemens did not specifically comment on the sales of turbines in the press release.
Siemens' most significant market-leading business in Russia is
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gas turbines used to power generation stations. About 50% of Russia's electricity is generated using natural gas, and a major generation capacity modernisation drive launched by the government also included a state programme for supporting gas turbine production.
Previously Siemens survived a sanction-busting embarrassment when its gas turbines were used to power utility assets in the annexed Crimea peninsula, and it even solidified its presence in Russia by playing along with Kremlin’s localisation demands.
Should Siemens indeed pull out of Russia for good, it is unclear whether alternatives to Siemens turbines will be provided by domestic players.
Russian state utility major InterRAO planned to invest $0.8bn in the development of gas generation turbines, with a goal to