Putin approved the transfer of USC to the management of VTB for five years

Russian President Vladimir Putin approved the transfer to the bank VTB in trust for five years 100% of the shares of the United Shipbuilding Corporation (USC). Such decree published on the legal information portal.

“Accept the proposal of the Russian government to transfer the bank into trust management VTB <...> 100% shares of the joint stock company “United Shipbuilding Corporation“for a period of five years, without holding a competition, for the right to conclude a trust management agreement for shares that does not provide for remuneration,” the document says.

The Government of the Russian Federation, in turn, must ensure the conclusion of a trust management agreement within six months, and also within two months bring its acts into compliance with the decree. The document comes into force on October 9.

That VTB will receive the papers in trust USC, it became known during a meeting between the chairman of the bank’s board Andrei Kostin and Putin on August 10. The press service of the Ministry of Industry and Trade stated that this will contribute to the long-term stabilization of the financial situation USC and will have a positive impact “both on internal interaction and on work with customers and counterparties.”

Thus, according to Deputy Prime Minister, Minister of Industry and Trade Denis Manturov, it is planned to attract extra-budgetary funding for the further development of the corporation. USC itself noted then that trust management “does not change the form of ownership and obligations under existing contracts.” The VTB release emphasized that corporate changes “should not affect USC’s obligations to customers, cooperation and employees.”

A Vedomosti source close to the Ministry of Industry and Trade told in turn that VTB must ensure the fulfillment of two main tasks. “First, rehabilitate the corporation’s unprofitable assets. Of course, no one will let them play with defense shipyards, but in terms of civil shipbuilding they have a wide field for work. Secondly, become a source of financing for the improvement of factories USC. It may not be possible without financial support from the budget – it is easier to recapitalize VTB than USC,” he explained.

USC was established in 2007 by presidential decree. It includes more than 50 design bureaus, shipbuilding, ship repair and engineering plants, and research centers in 15 regions. Since its creation, USC has built and repaired more than 320 warships and civilian vessels. The number of employees of the company exceeds 105,000 people.