From Hannover to Elista – with a new plant


Investment climate in Kalmykia From Hannover to Elista – with a new plant. The largest international exhibition of industrial innovations, the Hannover Industrial Trade Fair was closed last week in Germany.

This year was the exhibition’s 60th anniversary was celebrated by over 6,400 business participants from 60 countries, including Russia. One of the brightest moments of the Russian participation was signing of an agreement between the Government of the Kalmyk Republic and Rosenergomash Concern for construction of a large electrical engineering equipment plant, Elista Energomash, in Kalmykia. The details of this project were revealed to the RN by Vladimir Palikhata, the President of Rosenergomash Concern.

Russian Newspaper: Vladimir Mironovich, why did you choose to sign an agreement with Kalmykia in Hannover of all other places?

Vladimir Palikhata: The Hannover Trade Fair is the world’s largest area to present industrial achievements of different countries. Besides, two years ago Russia became the Fair’s authorized partner and was opened by Vladimir Putin, the President of Russia, together with the Chancellor of Germany. Back in 2005 the President said that the Russian participation in the Hannover Fair encourages integration of our country into the European economy.

At present Russian companies actively participate and present in Hannover their industrial potential. In the course of the negotiations with Kirsan Nikolayevich Ilumzhinov, the Kalmyk President, it was suggested that signing the new plant construction agreement at the Hannover Fair would be another evidence of Russia’s industrial revitalization for the international community.

Russian Newspaper: Please tell us about Elista Energomash plant to be constructed in Kalmykia. Will it be a public-private enterprise?

Vladimir Palikhata: Yes, this project will be implemented by Elista Energomash company 25% in which will be owned by the Kalmyk party.

Russian Newspaper: What is the project value and economic outlook?

Vladimir Palikhata: The initial investments in this project approximate EUR 10 million. Under the action plan the plant’s turnover will reach EUR 30 million by 2010.

Russian Newspaper: How important is this new plant for Kalmykia?

Vladimir Palikhata: At present Kalmykia is implementing its independent power system project; our partnership with the Kalmyk Republic is estimated to bring a significant contribution to this process. A new plant means new work places, tax payments to the local and federal budgets, social protection. It is certain that the construction of a world-class state-of-the-art plant will contribute to the region’s investment appeal.

Russian Newspaper: Are you positive that your products can compete with those manufactured abroad?

Vladimir Palikhata: The products manufactured by the Concern enterprises prove their competitive power. Despite the aggressive penetration of foreign manufacturers to the Russian market, the demand for our products is still growing. Elista Energomash will manufacture modern equipment in compliance with the global standards and will support the industry development on the national scale. This is the mission of Rosenergomash Concern: by assisting industrial development we support the government’s policy of developing Russia’s economic independence.

Russian Newspaper: When will the new plant be commissioned?

Vladimir Palikhata: The plant is scheduled for commissioning in 2008. We believe that this year will open new prospects both for the Concern and the Kalmyk Republic.

Energy News
Hannover – Elista

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