SIEMENS TO BUILD UP PRESENCE IN RUSSIA EVEN AFTER BIG DEAL FLOPPED

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MOSCOW, April 13 (RIA Novosti) - Siemens is badly disappointed as Russia's Federal Anti-Monopoly Service refused to authorize its purchase of Silovye Mashiny concern stock. The German-based mammoth, however, is not put out in the slightest, and intends to build up its activities in Russia.

"Siemens met the Anti-Monopoly Service resolution with regret," says Nikita Kukushkin, Siemens press secretary for Russia. "Despite all that, the company will go on extending its presence in Russia, and work for closer ties with its partners and clients in the Russian markets, in particular, the power industrial equipment market. It will be offering its equipment just as before-to update Russian power industry, among other purposes."

Interros Co. "regards the stance of the Federal Anti-Monopoly Service and of other central offices as reflecting the government's readiness to promote Russian power industrial engineering", Larissa Zelkova, company public relations department manager, said to Novosti.

"We hope the abortive transaction will not prevent Silovye Mashiny and Siemens from making their partnership ever closer," she added.

The Federal Anti-Monopoly Service announced its refusal in an official statement it was circulating today.

"The Siemens application to acquire a Silovye Mashiny block was turned down in compliance with the law, On Competition and Limiting Monopoly Activities in Commodity Markets, Clause 18, Para 4," specifies the statement.

The Russian-based Interros holding, Silovye Mashiny proprietor, and Siemens announced, last summer, an understanding they had made to establish a joint venture with an approximate 74% Silovye Mashiny block on its authorized capital.

Russia ought to establish a national power industrial engineering corporation, Andrei Belyaminov, Director, Federal Service for Military Industrial Contracts, said last week. He strongly came out against Siemens purchasing a Silovye Mashiny block, though acknowledging that Russia was to thoroughly substantiate its stance on the matter. "Our stance must be well-grounded. It needs precise arguments-we are not merely to ban and make obstacles," he remarked.

The Silovye Mashiny concern might make the kernel of a national power industrial engineering corporation, which Russia needs to set up, Academician Evgeni Velikhov said in a written message he forwarded to the federal top toward last February's end, certain media outlets announced at the time.

Evgeni Velikhov, Full Member of the Russian Academy of Sciences, is President of the Kurchatov Institute, renowned nuclear research center.

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