Kremlin grabs control of physicists company

The Washington Post : Physicist Vladislav Tetyukhin and entrepreneur Vyacheslav Bresht, who rescued titanium manufactuer VSMPO-Avisma in the 1990s and converted it into a billion dollar company, have lost their battle to remain independent from the Russian government. Tetyukhin invented the process VSMPO-Avisma uses to smelt titanium in 1957. The Russian government planned its takeover of VSMPO-Avisma through Rosoboroexport, a state-owned arms export agency. VSMPO-Avisma is considered to be of strategic importance to Russia, as it is the world’s largest supplier of titanium, which is used in both civilian and military aircraft. Since Rosoboroexport announced its interest in taking over VSMPO-Avisma, the company has been under a tax audit, and the prosecutor-general began an investigation into the share structure of the VSMPO-Avisma as a way of applying pressure to shareholders to sell their stake to Rosoboroexport at a cheap price. Tetyukhin was quoted in the financial times newspaper some months ago as saying “Why do their patriotic feelings show only now, when the company is making a profit, when it has been cleaned up and restructured?"According to the Washington Post, Rosoboroexport completed its takeover of VSMPO-Avisma last week when it acquired 66 percent of the shares in the company. At the same time, the tax audit and prosecutor-general investigation against the previous shareholders have been dropped. Tetyukhin, will retain a 3.8 percent stake in the company and Rosoboronexport has assured VSMPO-Avisma’s international customers such as Boeing, which account for 75 percent of the company’s $1 billion in annual sales, that they will continue to be a reliable supplier.