Support The Moscow Times!

Putin Ally Has Stake in Space Company

Lider, a company co-owned by businessman Yury Kovalchuk, owns a 25 stake in Energia, a major manufacturer of spacecraft, a news report said Thursday, citing a source with the space company.

Kovalchuk is a close associate of President Vladimir Putin.

Lider CEO Anatoly Gavrilenko said his company has had direct or indirect control of the Energia stake "for quite a long time," according to Vedomosti.

"Since we are an investment company, we are focused on selling?  assets in the future for a profit on the invested capital," Gavrilenko noted.

He said that companies in the space industry were seriously undervalued and added that he expected asset values to appreciate.

Mikhail Kokorich, CEO of Russian space startup Dauria Aerospace, said the government has been spending more on space equipment in the last 2 to 3 years.

For that reason, Energia's capitalization might rise in the future, he said.

According to a draft of the state space program published on the Federal Space Agency's official site Wednesday, the government will spend 2.1 trillion rubles ($66 billion) on space until 2020.

Energia's current capitalization on the Moscow Exchange is 4.6 billion rubles ($145.5 million).

Lider's 25 percent stake in the company is worth 1.15 billion rubles.

However, Lider's prospects for making a profit on Energia stock are in danger: Its stock was trading at twice the current value in 2010.

The government holds 38 percent in Energia.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more