Holding a finger on the pulse of a world financial crisis Russian banking system is in process of developing counter-recession measures.
Vladimir Simonenko, deputy head of the Russian government’s department of economy and finance, has been appointed Deputy Minister for Economic Development, and a relevant order was posted on the Cabinet’s web site on Monday.
A document related to the appointment was signed on May 31.
VTB Capital chief economist Alexey Moiseev would become a deputy finance minister, the ministry’s official and two bankers told Vedomosti business daily. Moiseev himself and a VTB Capital spokesman declined to comment. The Finance Ministry has three vacant positions of a deputy finance minister, “I have no information on specific names”, the ministry’s representative said.
Moiseev would oversee issues related to the long-term planning of the nation’s budgetary policy. Previously this position was occupied by Oksana Sergienko who unexpectedly died last year. Since then this seat has been vacant.
Alexey Moiseev joined VTB Capital in autumn 2010 after leaving Renaissance Capital. Since 2004 at Renaissance Capital he had been head of fixed income, and his career began at the Central Bank of Russia and he also worked at the London office of BNP Paribas.
Pavel Korolev has been appointed Deputy Minister for Economic Development. A relevant order was posted on the government’s web site on Friday.
A document related to the appointment was signed on June 13.
Previously Pavel Korolev held office as the Sverdlovsk region’s vice PM.
Oil prices and euro worries are driving the ruble to rates not seen in years. The ruble dipped to a three-year low Thursday as oil prices fell further.
The ruble dropped 1.2 percent to 33.2 rubles against the U.S. dollar in later afternoon trading Thursday, its lowest level since April 2009, before picking up slightly to close at 32.45 rubles to the dollar by the official Central Bank rate.
The Russian currency has been declining for seven days and lost some 3.5 percent this week as oil prices went down.
Analysts also attribute the ruble’s decline to increasing anxiety regarding the eurozone economies of Greece, Spain and Italy, prompting speculation that demand for Russia’s cash-cow commodities could slump.
The Central Bank increased daily sales of dollars and euros to slow the depreciation of the ruble against its target basket, VTB Capital said.
The regulator is selling the equivalent of about $200 million a day, said Mikhail Palei, a currency trader at the brokerage unit of Russia’s second-largest bank. The Central Bank was previously selling $100 million to $150 million a day, he said.
The Urals blend, which is viewed as a benchmark price for Russian oil exports, dropped 3.4 percent to $100.60 Wednesday and lost a total of 4.5 percent this week.
Deputy Prime Minister Arkady Dvorkovich sought to assuage fears of lower oil prices and a declining ruble, insisting that the government is in control.
“We’re prepared for any scenario,” he told RIA-Novosti. “But we have the reserves necessary for dealing with a crisis if there is one.”
Russia holds more than $513 billion in international reserves, which include foreign currency, gold and special drawing rights, but the country’s international currency and gold reserves dropped $1.1 billion in the week ended May 25 to $513.2 billion, the Central Bank said on its website Thursday.
Gazprombank — Asset Management, which runs closed-end mutual hedge fund Altai, bought a 5% voting stake in Orient Express Bank, one of the fast growing banks on the Russian banking market, the lending institution said in a press release, Prime-TASS wired.
At present, the lender’s shareholders are investment fund Baring Vostok Capital (30%), IFC (13.9%), management board chairman Sergey Vlasov (12.4%), and also entrepreneurs Igor Kim (15.6%), Andrey Bekarev (8.2%) and Alexander Taranov (7.3%).
The bank plans to take onboard major global funds, including EBRD. This week Orient Express Bank’s BoD adopted a decision to upsize the charter capital by 24% by placing 18 bln common shares via open subscription. The bank’s management board chairman Sergey Vlasov said that the lending institution intends to net $100—150 mln in a SPO.
Anatoly Ballo, accused of multimillion dollar embezzlement, is staying on as deputy chairman of the Foreign Economic Bank (VEB), defense attorney Tagir Samakayev told the Russian Legal Information Agency (RAPSI/rapsinews.com).
Investigators have filed a motion to suspend Ballo, but the Moscow’s Tverskoy District Court dismissed it on insufficient grounds, the lawyer said.
Ballo and his alleged accomplices are suspected of misappropriating $14 million allocated in 2008 for Evraziyskiy, a water supply operator in southern Russia.
VEB has been Evraziyskiy’s major shareholder since 2006. Investigators found that the stolen funds were deposited into Swiss bank accounts and charged VEB top manager with fraud. He faces up to 10 years in prison.
According to Samakayev there is insufficient evidence for opening a case against his client; the charge is not specific enough and unfounded.
Initially, Ballo was brought into the case as a witness, but a separate case was later opened against him.
Sberbank is set to sign a preliminary agreement next week to buy failed Franco-Belgian lender Dexia’s Turkish unit DenizBank, a source close to the negotiations said Friday.
“An agreement is planned to be signed June 7-8. … It will be preliminary,” he said, adding that discussions on price would continue after the signing.
The Belgian government had been looking to raise 1.5 times DenizBank’s book value, which according to Reuters calculations is about $3.9 billion, based on the current exchange rate of the Turkish lira.
But Sberbank is the only remaining bidder in the sale process, after Dexia earlier rejected an offer from the Qatar National Bank as too low.
One senior banker, who is not directly involved in the talks, said Sberbank had offered 2.9 billion euros ($3.6 billion), while a person close to the negotiations said the price was above 2.7 billion euros and very close to Dexia’s current expectations.
The book value of DenizBank stood at 4.9 billion Turkish lira ($2.63 billion) at the end of March.
Franco-Belgian Dexia wants a deal agreed before the end of June, at which point chief executive Pierre Mariani is expected to step down, making way for Karel De Boeck, who led Fortis’s Belgian operations after the bank’s 2008 breakup.
Dexia has to sell the Turkish business and other assets following its state rescue by France, Belgium and Luxembourg.
The European Commission is examining Dexia’s bailout and breakup plan. It expressed doubt Thursday that Dexia’s proposal to receive state guarantees at minimal cost was compatible with state aid rules.
Russian President Vladimir Putin penned a decree to appoint Vladimir Dmitriev head of state-run corporation Bank for Development and External Economic Activities, RIA Novosti wired quoting the Kremlin’s press service.
Dmitriev has been at the helm of Vnesheconombank since 2004. The state-run corporation (Vnesheconombank) was founded on the basis of this bank, and also Roseximbank and Russian Development Bank in 2007. Dmitriev was appointed the corporation’s board chairman on June 18, 2007. His first term of office expired on Monday.
The development bank conducts investment, external economic, advisory and other activities to execute projects in Russia and abroad, including those involving foreign capital. These projects are designed to develop national infrastructure, innovations, special economic zones, protect the environment, support exports of Russian goods and services, work and services, and also small and mid-sized enterprises.
Brothers Alexey and Dmitry Ananievs, majority shareholders of Promsvyazbank, a Top 30 lender in Russia, closed a deal to buy 14.37% of the bank’s shares from German lender Commerzbank, the Russian lending institution said in a press release.
For the record, Commerzbank Auslandsbanken Holding AG became Promsvyazbank’s shareholder in November 2006.
“As a result of the deal an equity stake held by Promsvyaz Capital B. V. (controlled by the Ananievs) increased to 88.25% of the bank’s charter capital. EBRD’s holding remains unchanged (11.75%),” the bank pointed out in the press release. The deal was closed on June 18, 2012.
In early June Promsvyazbank president Artem Konstandyan said that the deal would be wrapped up by July 1 in line with the plan, as the Bank of Russia gave consent and the amount of money was accumulated.
At that time he declined to disclose the transaction price, but noted that Commerzbank is pleased with its investment.
According to Konstandyan, EBRD’s equity position will remain the same in the near future.
At the lender’s annual shareholders meeting, which is scheduled for June 29, a decision will be taken to execute an additional share issue, parameters of which are not disclosed. For the record, Promsvyazbank issued additional shares worth Rub 4 bln in December 2011.
When asked how the bank intends to maintain capital adequacy at a required level, Konstandyan said that the primary source of capitalization is still profit, while the upcoming additional share issue will be enough in the short-term outlook.
The board of directors at the Bank of Moscow adopted a decision to re-elect VTB Bank CEO Andrey Kostin as the bank’s board chairman, RIA Novosti wired. The decision was taken unanimously.
The board also approved an operating schedule for July — December 2012 and the bank’s dividend policy.
Earlier in June VTB Bank held an annual shareholder where the shareholders elected a new board, and now its members are VTB Bank CEO Andrey Kostin, VTB 24 CEO Mikhail Zadornov, VTB Bank first deputy board chairman Yury Soloviev, VTB Bank deputy board chairmen Herbert Moos and Andrey Puchkov, VTB Bank management board members Erkin Norov and Ekaterina Petelina, Bank of Moscow CEO Mikhail Kuzovlev, Moscow Deputy Mayors Andrey Sharonov and Natalia Sergunina, VEB representative Alexander Zelenov and portfolio investor Sergey Kovanda.
In line with the bank’s rehabilitation program, in 2012 the Bank of Moscow intends to earn around Rub 7 bln under RAS. The bank’s financial showings under IFRS will differ.
The shareholders of Rosbank, which is part of French banking group Societe Generale (SocGen), approved a new 11-member board, the lending institution said in a press release. SocGen Group holds 82.4% of Rosbank shares, businesses controlled by Vladimir Potanin’s Interros own 6.5% and VTB Group concerns hold around 9.9%.
Apart from the current board members, the bank’s BoD now includes head of international retail banking at SocGen Jean-Louis Mattei, independent director Christian Schricke, head of corporate resources and innovation at SocGen Francois Mercadal-Delasalles, head of specialized financial services at SocGen Didier Hauguel, Ilya Kosykh, deputy head of treasury and corporate finance at Interros, Georgy Gorshkov, an advisor to the management board chairman at Bezhitsa-Bank (part of VTB Group), Rosbank management board chairman Vladimir Golubkov, independent director Martin Gilman and SocGen Group deputy executive board chairman Bernardo Sanchez Incera.
New board members are head of corporate and investment banking at SocGen Group Didier Valet and Jean-Luc Parer, one of the group’s heads of international retail banking.
VTB Debt Center will be folded into VTB Pension Administrator, Prime-TASS wired quoting a press release of the Bank of Moscow, for which both companies are parent.
Right now, two VTB Bank subsidiaries hold in the aggregate 94.9% of Bank of Moscow shares. VTB Pension Administrator directly holds around 34% of the bank’s shares.
For the record, in late January 2012 VTB Bank deputy board chairman Andrey Puchkov said that all the Bank of Moscow shares that are owned by VTB Group would be gathered on the balance sheet of VTB Pension Administrator, into which VTB Debt Center would be folded.
Russian President Vladimir Putin penned amendments to the Federal Law “On the Federal Budget for 2012 and the Planning Period of 2013 and 2014”, said a press release posted on the Kremlin’s web site.
The law was adopted by the State Duma on May 25 and ratified by the Federation Council on May 30, 2012.
The law calls for cutting a deficit of the federal budget from 1.5% of GDP to 0.1% of GDP in 2012.
Aggregate budget revenues would grow from the approved Rub 11.78 tln to Rub 12.67 tln and budget spending to rise from Rub 12.65 tln to Rub 12.74 tln. As a result, a budget deficit in 2012 would be only Rub 68.14 bln instead of Rub 876.58 bln.
The law establishes that O&G revenues to be generated during the execution of the federal budget in 2012 above Rub 5.55 tln (Rub 5.06 tln in the current edition of the budget law) could be used only to replace government loans or privatization proceeds. All other O&G revenues should be wired to the Reserve Fund no later than February 1, 2013.
The upper boundary of Russia’s government internal debt is proposed to be lowered from Rub 6.33 tln to Rub 5.46 tln as of January 1, 2013.
At the same time, the upper limit of the government external debt would be raised to $56.5 bln, or €41.9 bln, from $48.4 bln, or €34.6 bln.
The Bank of Russia is compiling amendments to the method used to calculate banks’ reserves against possible loan losses taking into account remarks made by the experts, CBR board chairman Sergey Ignatiev told journalists.
New requirements for the calculation of the capital adequacy ratio at Russian banks will become effective starting July 1, 2012. Bankers see nothing extraordinary in this move, no longer consider this measure as tough despite initial harsh rhetoric, but are waiting for ‘a road map of future measures’ from the regulator.
“Our measures aim to tighten regulation to fight against the application of various schemes,” said Ignatiev noting this is just tightening.
As he said, until now there have been banks that try to conceal related party risks.
At the same time the CBR chief believes that it’s not reasonable to be in a hurry to adopt these measures.
“We have so far worked at an easy pace, given events in Europe, maybe it’s necessary to wait little (with the adoption of the amendments to the method designed to calculate reserves),” he pointed out.
The State Duma took a decision to adopt amendments to the currently effective law “On Mortgage Securities” in accordance with a draft law proposed for the review by Anatoly Aksakov, President of the Association of Regional Banks of Russia and deputy head of the State Duma’s Financial Market Committee, the association’s press service reported.
Two methods of issuing mortgage securities are practiced worldwide. The first one is when securities are issued through a specialized institution of mortgage agencies, as is the case in the United States, and another allows banks to issue mortgage securities from their balance sheets, as practiced in Germany. As Aksakov noted, German experience proved to be more efficient as it allows to cheapen the securities issue procedure itself and banks do not need to spend money on intermediaries and the establishment of complicated schemes.
So, it is assumed to exclude the requirements for lending institutions that issue mortgage-backed securities, for the fulfillment of the required ratio (№ 19) from Federal Law No. 152 “On Mortgage Securities”. The reading of this ratio, the cap of which, in line with CBR’s instruction, equals 50%, determines the highest admissible ratio between an issuing bank’s liabilities and equity capital.
In this connection the association’s president pointed out that “the adoption of this draft law will allow banks to strengthen their liabilities and be more aggressive in lending the economy, including on the mortgage market”.
He is convinced that releasing banks from additional restrictions will drive up retail deposits.
The Finance Ministry is working on draft amendments to the Federal Law “On Using Government Securities of the Russian Federation to Increase Capitals of Banks” to extend its term for four years, and a relevant document was posted on the ministry’s web site.
The law was adopted in July 2009 and aimed to maintain stability in the Russian banking system during the crisis. Under the law, the number of a bank’s preferred shares placed for the purpose of raising its capitalization should not exceed 100% of the bank’s equity capital. In addition, the Russian Federation gained the right upon expiration of the period established to sell acquired preferred shares if a bank’s shareholders and the bank itself consistently refuse to buy them.
“Amending legislation will make it possible, as required, during the period until December 31, 2014 to enter into agreements to swap preferred shares to be placed by banks in accordance with the said federal law for federal loan bonds. These measures
may be taken in order to provide the banking sector with resources required to maintain lending activity,” the ministry said in an explanatory note.
In line with the amendments, to execute a capital lifting procedure the Russian government was provided with the right to issue federal loan bonds falling due no later than December 31, 2022.
Prior to December 31, 2014 a federal executive body, authorized by the Russian government, will sign with banks that approved a decision on the issue of preferred shares as part of the capital lifting procedure agreements to swap these preferred shares for federal loan bonds.
Meanwhile, until December 31, 2017 a bank’s shareholders will be entitled to buy these preferred shares from the Russian government. Moreover, a bank itself may buy these shares from January 1, 2018 to December 31, 2019 if its shareholder assigns its right to do so.
Prior to January 1, 2020 the Russian Federation has no right to alienate the preferred shares it holds, which were placed as part of the capital lifting procedure.
To promote the nation’s economic growth the Central Bank of Russia should extend refinancing periods for lending institutions and pursue a softer supervisory policy in case the environment deteriorates on financial markets owing to the crisis’s aftermath, president of the Association of Regional Banks of Russia and Fair Russia faction member Anatoly Aksakov said at the State Duma while discussing the Bank of Russia’s report. His proposals gained support from other Duma members, including the head of the State Duma’s Committee for the Financial Market and Economic Policy, the association said in a press release.
In his speech Aksakov pointed out that the Bank of Russia’s duties include to provide stability of the national currency and the banking system. As the ruble’s stability depends on the state of the national economy, the Central Bank of Russia should take also those measures that promote economic development as a whole.
As regards the banking system’s sustainability, the situation is normal and there are no shocks. At the same time, this sector is substantially segmented, unequal competitive conditions were created, i.e. when various banks have diverse opportunities to access refinancing options, resources, Aksakov noted.
The Bank of Russia determines refinancing opportunities of lending institutions and at the same time sets the capital threshold. Aksakov thinks that it is necessary to take measures so that the size of a bank’s capital impacts the amount of credits granted, but is not used as a formal criterion to oust some banks.
The lawmakers in turn should adopt laws tightening requirements for auditors and rating agencies, and in this case it would be possible to demand that the Bank of Russia would issue mid-term credits for three or even five years to banks that have good ratings, operate transparently and comply with required ratios. In this case the Bank of Russia will truly be able to play the role of an institution that influences economic expansion, contributes to economic makeover, the association’s chief noted.
He also objected to the scheduled tightening of supervisory requirements, in particular, to introduce higher risk assessment ratios as given the current situation these measures will not lead to heightened sustainability, but, on the contrary, will cause tension in the system. Many banks will have to cut lending, and the ultimate goal will not be attained, the Duma member specified.
Air Baltic Corporation
The Moscow Commercial Court has ordered Logopark Kolpino to pay 75.9 million euros in favor of Moscow’s AMT Bank.
In its statement regarding the 65.7 million euro claim, the bank said that Kolpino was granted a 40 million euro loan in October 2008. The loan was to be repaid on April 12, 2009. The company partially repaid the principal debt but failed to meet its obligations in full. The bank consequently sued the defendant for 34 million euros for the principal amount and for interest on the loan.
The bank told the court that it had notified the defendant about the payment periods. However, the notification letters were sent back stating that no such recipient was located at that address.
On Thursday, the court recovered the main debt from Logopark Kolpino, as well as 28.1 million euro in interest, 7 million euros in fines and 5 million euros in penalties.
The Kolpino Logistics Park near St. Petersburg was established by Eurasia Logistics. The size of the park is roughly 580,000 square meters. Eurasia Logistics is a major Russian industrial and warehouse property developer owned by Kazakh businessman Mukhtar Ablyazov. It is part of the Eurasia Investment and Industrial Group. It has run the A-class Kolpino project since 2005.
AMT Bank (previously known as BTA Bank) is a multipurpose financial institution with 9 branches and 26 offices. According to the RIA Analytics Economic Research Center, AMT was ranked 71st in terms of assets as of April 1, 2011.
The Moscow Commercial Court upheld the Central Bank’s petition for ATM Bank’s bankruptcy in October 2011. The Deposit Insurance Agency (DIA) was appointed to act as the receiver of the failed bank. The Central Bank revoked AMT’s license in July for forging account data. The banks deposit portfolio amounted to 15 billion rubles ($448.95 million). According to the DIA, it will pay a record 13 billion rubles ($389.09 million) to AMT’s depositors.
According to information on the bank’s website, Ablyazov directly holds 19.7 percent of the credit institution. Ablyazov has been living in the United Kingdom since 2009.
The police opened a criminal case against him on suspicion of fraud and withdrawal of funds via shell companies.
Gazprombank, one of TagAZ’s major shareholders, has filed a request to the Investigative Committee to look into TagAZ management, administration and affiliates, and to initiate a criminal case against them if sufficient grounds are found.
Alexander Shmidt, Gazprombank First Vice-President and Board Member, submitted the application on behalf of the committee’s Chairman, Alexander Bastrykin.
The bank claims that it is necessary to check whether TagAZ’s actions were legal and do not qualify as crimes stipulated by the Criminal Code on fraud, illegal actions during bankruptcy and abuse of office.
According to Gazprombank, TagAZ’s debts to the bank exceeded 2.8 billion rubles ($83.05 million), including 1.854 billion rubles ($54.99 million) in unpaid loans and 909 million rubles ($29.96 million) in debts from letters of credit.
In his request, Shmidt emphasized that despite the enterprise’s financial difficulties, in 2009-2011 Gazprombank took a number of measures to supply the bank with necessary floating assets and to restructure the debt. The bank provided TagAZ with additional finances, based on the data given, which showed a positive change in the company’s position.
Shmidt stressed that the TagAZ management, knowing that the company was close to bankruptcy, concealed data on property it held and transferred its pledged assets, ignoring its loan obligations.
The St. Petersburg and Leningrad Region Commercial Court suspended proceedings in the lawsuit by Sberbank to recover $41.84 million from Cargo JFC, the judge said at the hearing on Tuesday.
Cargo JFC is part of the JFC group, a major fruit importer to Russia.
The case proceedings have been suspended until the bank’s application on entering Cargo JFC creditors’ claims in the register is considered. Bankruptcy procedures have been previously initiated at Cargo JFC.
According to the court documents, the court has not yet registered Sberbank’s application in the bankruptcy procedure.
At the current moment, creditors are claiming a total of five billion rubles ($149.44 million) from Cargo JFC. On June 5, the St. Petersburg Commercial Court will hear Sberbank’s lawsuit to recover 1.4 billion rubles ($41.84 million). A further Sberbank claim for 3.1 billion rubles ($92.65 million) will be handled on June 20 by the Moscow Commercial Court. The same court will also be considering two lawsuits by Raiffeisenbank, roughly totaling 500 million rubles ($14.94 million).
Cargo JFC, like Bonanza International, acted as borrowers under a syndicated loan facility of up to $88 million and 1.5 billion rubles ($44.83 million).
The St. Petersburg Commercial Court put the group’s head company into administration in March. According to JFC February reports, implementing a credit watch was necessary to protect creditors’ interests and for the company to continue its operations.
Allegedly, JFCs financial difficulties resulted from trouble on the global market, possibly attributed to the effects of the Arab Spring, which made many agricultural produce distributors bankrupt. JFC General Director Vladimir Kekhman has said that he is working on resolving the company’s financial problems and will be draw up a new business plan in about three months.
Established in St. Petersburg in 1994, the JFC Group comprises fruit production, procurement, storage, distribution and sales companies. It has 3,000 hectares of banana plantations in Ecuador and Costa Rica. JFC runs offices in St. Petersburg, Moscow and other Russian cities, as well as in Cyprus, Ecuador and Costa Rica. It has 3,600 personnel. JFC is engaged in fruit sales in Europe, the Middle East and the CIS.
The Moscow Commercial Court has shelved Investbank’s lawsuit against Latvia’s Air Baltic Corporation (airBaltic) and Baltijas Aviacijas Sistemas (BAS) to recover 5.3 million euro.
On January 27, 2011, the bank provided a 4.5 million euro loan to BAS, while airBaltic acted as the guarantor. The loan was set to mature in one year, but was never repaid. Investbank went to court seeking 4.8 million euros, but raised the amount claimed to 5.3 million euros at the preliminary session.
At the hearing on Tuesday, the defendants asked to terminate proceedings because “according to the agreement allegedly signed by both parties, the dispute should be reviewed by the International Commercial Arbitration Court”. The plaintiff objected as it believes that the defendants merely intend to drag out the trial. The court has refused to drop the proceedings and has shelved the banks claim.
The court has also upheld Latvijas Krajbanka’s motion to step in as a third party. Latvijas Krajbanka was the pledgor in the transaction and the judgment may affect its interests.
Investbank has in fact filed three lawsuits against the defendants. The other lawsuits claim 2.2 million and 10.3 million euros. The hearings for these have been scheduled for July 17.
Investbank was founded in Kaliningrad in 1989. Its head office moved to Moscow in 2011. Investbank is a multi-service bank which serves over 20,000 companies and 200,000 individuals in 84 Russian cities.
Air Baltic Corporation (airBaltic) is a joint stock company founded in 1995. The Latvian government holds 99.8 percent of its shares. In 2011, airBaltic served over 3.3 million passengers. Its fleet consists of 34 planes.
The Moscow Commercial Court has sided with Gazprombank in its lawsuit against bankrupt Taganrog Motor Works (TagAZ).
The lawsuit centered on two loans issued to the car manufacturer in 2008: one for 118.4 million euros and the other for $ 14.4 million. Both were set to mature in December 2009. TagAZ has partially repaid the principal amount – the last payments were made in October and November 2011.
With respect to the first loan agreement, the court has ordered TagAZ to repay 49.473 million euros, of which 45.8 million euros is the principal debt and 3.6 million euros is the interest. As concerns the second loan, the court has collected $702,000 – $656,700 in principal debt and $45,900 in interest. In addition, the court has enforced the pledge of TagAZ vehicles and levied execution on its assembly building.
At the hearing, Gazprombank noted that the bank made concessions to the plant: it waived fines and penalties stipulated by the agreements, and applied a floating interest rate to encourage the debtor repay its liabilities.
TagAZ filed for bankruptcy in April. Its debts reached 20 billion rubles ($615 million) after production dropped by three times in 2009. In 2010, the plant managed to come to an agreement with most of its creditors on debt restructuring, with the exception of VTB. TagAZ owed the bank 5.8 billion rubles ($178 million). In 2010, VTB filed several lawsuits against the plant.
TagAZ was founded in February 1997 and launched a joint venture with the South Korean Hyundai in 2001. The plant could simultaneously produce up to six different car models on its primary conveyor. The plant’s production capacity was 180,000 vehicles per year.
Contact person: Conference Secretary
ICFME 2012 will be published in the IPEDR (ISSN: 2010-4626) as one volume, and will be included in the E&T Digital Library, and indexed by EBSCO, WorldCat, Google Scholar, and sent to be reviewed by ISI Proceedings.
Contact person: Conference Secretary
ICSMR 2012 will be published in the IPEDR (ISSN: 2010-4626) as one volume, and will be included in the Engineering & Technology Digital Library, and indexed by EBSCO, WorldCat, Google Scholar, and sent to be reviewed by ISI Proceedings.