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Decision to be made soon on Bazovy Element's application for purchase of Siloviye Mashiny's shares

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MOSCOW, June 15 (RIA Novosti) - The Federal anti-trust service (FAS) will take a decision on the application of the Bazovy Element (Basic Element) company to buy shares of the Siloviye Mashiny (Power Machines) company within a fortnight.

Head of the FAS Igor Artemyev said on Wednesday that the decision "is likely to be positive".

The question is about a 73% stake in Siloviye Mashiny.

In late January 2005 Artemyev told journalists that one of Bazovy Element's affiliates had applied to the FAS for the purchase of Siloviye Mashiny. The official did not specify on the size of the stake, saying only that the buyers wanted to gain control of the enterprise.

Last July Interros (the owner of the control stake in Siloviye Mashiny) and Siemens decided to establish a joint venture, which would own about 71% of Siloviye Mashiny's shares. However, the FAS turned down Siemens' application for the controlling interest in the company.

When asked whether Siemens had been refused permission to buy Siloviye Mashiny in late January, Artemyev said, "of course, not."

In late May the head of the FAS stated that the service had received no applications for buying Siloviye Mashiny's shares any more.

The Siloviye Mashiny open joint-stock company is Russia's main producer of equipment for thermal, hydroelectric and nuclear power plants. The enterprises that the company includes put out defense products, such as equipment for Russian submarines and space rocket systems.

The State Duma (Russian parliament's lower chamber), which considered the issue on April 8, stated that sale of the control stake in Siloviye Mashiny to Siemens could thwart the implementation of the state order, cause the leakage of classified information and undermine Russia's mobilization preparedness.

Bazovy Element, headed by Oleg Deripaska, is Russia's largest company managing private investment funds which specializes in strategic investment in the country's promising economic industries.

Interros, headed by Vladimir Potanin, is one of the largest private investment companies in Russia. The market value of the company's assets is more than $10 billion.

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