Rivalry for French warship order
An attempt of the Russian Ministry of Defense to order the Mistral class helicopter carrier at a French shipyard gave rise to heated debates over the future of Russian shipbuilding industry. This became a background for an unfolding battle for the shipbuilding assets between its owner United Industrial Corporation and the state United Shipbuilding Corporation, making bids for the shipyards. Rumors that French DCNS has already transferred the first tranche to UIC for the warship order poured oil on the flames. Now it has come to the court and the prosecutor's office audits.
Assets appraisal differs
As we previously reported, the Russian state-owned United Shipbuilding Corporation (USC) and its French counterpart DCNS, formed a consortium through which they planned to participate in tenders for warships and high-tech merchant vessels contracts. In many respects, we believe, the cooperation agreement concluded between the two shipbuilding giants was triggered by the Russian Defense Ministry’s plans to buy French Mistral class helicopter carrier. The USC objected the deal saying the purchase of such vessels from a French shipyard should not be made without a tender, which would be open to Russian shipbuilders. For its part, the Defense Ministry had repeatedly stated that French companies are preferable to accomplish such an order. So USC and DCNS teamed up to rival for the newbuild contract.
Now the story received a new twist, associated in particular with the desire of USC to acquire shipbuilding assets of UIC, first St. Petersburg-based Baltic Shipyard, which may participate in implementing of the warship order.
UIC, which is still in the red, expects to get for its yards at least 100 billion rubles. Such figure was given today in an interview with PortNews by UIC press office as the "final and only official price" of the Corp.’s shipbuilding assets. United Shipbuilding Corp. that does not agree with the price assessment had appealed to the Arbitration Court of Appeal, which was to be held on November 17. However, court hearing was canceled due to non-appearance of the defendants and was rescheduled to December 23. As a UIC’s spokesman told the PortNews correspondent, some of the defendants were notified of the date and time of this court hearing.
Assets appraisal differs
As we previously reported, the Russian state-owned United Shipbuilding Corporation (USC) and its French counterpart DCNS, formed a consortium through which they planned to participate in tenders for warships and high-tech merchant vessels contracts. In many respects, we believe, the cooperation agreement concluded between the two shipbuilding giants was triggered by the Russian Defense Ministry’s plans to buy French Mistral class helicopter carrier. The USC objected the deal saying the purchase of such vessels from a French shipyard should not be made without a tender, which would be open to Russian shipbuilders. For its part, the Defense Ministry had repeatedly stated that French companies are preferable to accomplish such an order. So USC and DCNS teamed up to rival for the newbuild contract.
Now the story received a new twist, associated in particular with the desire of USC to acquire shipbuilding assets of UIC, first St. Petersburg-based Baltic Shipyard, which may participate in implementing of the warship order.
UIC, which is still in the red, expects to get for its yards at least 100 billion rubles. Such figure was given today in an interview with PortNews by UIC press office as the "final and only official price" of the Corp.’s shipbuilding assets. United Shipbuilding Corp. that does not agree with the price assessment had appealed to the Arbitration Court of Appeal, which was to be held on November 17. However, court hearing was canceled due to non-appearance of the defendants and was rescheduled to December 23. As a UIC’s spokesman told the PortNews correspondent, some of the defendants were notified of the date and time of this court hearing.
According to USC, the dispute hearings of the case are expected to lengthy. "We are confident that the court would have recognized the validity of assets assessment made by the Central Bank, but that would not be desirable for UIC.
Backstage deal
At the same time, the media reported, citing an anonymous source in the Russian Defense industry, that the French state-owned DCNS has already transferred the first tranche of 200,000 euros for UIC’s Baltic Shipyard as a guarantee of order for Mistral-class warship project. If this information is true, it makes the formation of the Consortium of USC and DCNS unfruitful. Besides, the official results of the tender for the warship order have not yet been announced. Both offices of UIC and Baltic Shipyard neither confirm nor deny the information about the transfer reports. As of now, spokesmen of DCNS did not responded to a request of PortNews.
As a source in USC suggests, this tranche could be a fulfillment of obligations by DCNS to Baltic Plant, concluded before the signing of an agreement on creating a consortium with USC. In any case, DCNS has appeared to be in a difficult situation, being unwillingly drawn into a struggle for the shipyard assets in Russia.
The situation is getting worse, as the USC’s opponents are trying to put pressure on the Corp. through the Prosecutor's office audits. According to PortNews information, to date, all shortcomings detected by the law enforcement agency have been eliminated and the Prosecutor’s Office has nothing against the United Shipbuilding Corp. However, the Arkhangelsk Prosecutor's Office ordered the Severodvinsk-based Sevmash CEO to eliminate violations, revealed by the Prosecutor’s Office audit, of procedure of tenders for newbuilding contracts held in 2008-2010.
Sevmash is part of Northern Center of Shipbuilding and Repair, a group of USC, specializing in upgrade of warships.
Several top Russian officials also made statements about the situation with Mistral warship. In particular, during the visit of Russian Prime Minister to France, Vladimir Putin told reporters that Russia ordering the helicopter carrier would be willing to obtain state-of-the-art shipbuilding technologies. Deputy to Prime Minister Igor Sechin said in late August that such ships could be built at the Admiralty Shipyards in St Petersburg (part of USC).
Vitaly Chernov.
At the same time, the media reported, citing an anonymous source in the Russian Defense industry, that the French state-owned DCNS has already transferred the first tranche of 200,000 euros for UIC’s Baltic Shipyard as a guarantee of order for Mistral-class warship project. If this information is true, it makes the formation of the Consortium of USC and DCNS unfruitful. Besides, the official results of the tender for the warship order have not yet been announced. Both offices of UIC and Baltic Shipyard neither confirm nor deny the information about the transfer reports. As of now, spokesmen of DCNS did not responded to a request of PortNews.
As a source in USC suggests, this tranche could be a fulfillment of obligations by DCNS to Baltic Plant, concluded before the signing of an agreement on creating a consortium with USC. In any case, DCNS has appeared to be in a difficult situation, being unwillingly drawn into a struggle for the shipyard assets in Russia.
The situation is getting worse, as the USC’s opponents are trying to put pressure on the Corp. through the Prosecutor's office audits. According to PortNews information, to date, all shortcomings detected by the law enforcement agency have been eliminated and the Prosecutor’s Office has nothing against the United Shipbuilding Corp. However, the Arkhangelsk Prosecutor's Office ordered the Severodvinsk-based Sevmash CEO to eliminate violations, revealed by the Prosecutor’s Office audit, of procedure of tenders for newbuilding contracts held in 2008-2010.
Sevmash is part of Northern Center of Shipbuilding and Repair, a group of USC, specializing in upgrade of warships.
Several top Russian officials also made statements about the situation with Mistral warship. In particular, during the visit of Russian Prime Minister to France, Vladimir Putin told reporters that Russia ordering the helicopter carrier would be willing to obtain state-of-the-art shipbuilding technologies. Deputy to Prime Minister Igor Sechin said in late August that such ships could be built at the Admiralty Shipyards in St Petersburg (part of USC).
Vitaly Chernov.