“Dastan” torpedo factory to be auctioned in Kyrgyzstan

Almaty. April 21. Silkroadnews – Kyrgyz State Asset Management Fund is auctioning 98.46% of its JSC “Dastan Transnational Corporation” shares, as the fund reports.
Kyrgyzstan government ordered different departments to work out the rules and conditions of the auction related to investors’ responsibility to develop production, modernise equipment and improve economic performance of the factory.
Kyrgyzstan was previously planning to pay off its debts to Russia with 48% of its “Dastan” shares. Parties stipulated the procedure for transferring 48% of factory shares along with company’s fixed assets to Russia that would cover USD 180 mln of Kyrgyz debt back in 2009. However, USD 489 mln of Kyrgyz debt to Russia was written off during Putin’s official visit to Kyrgyzstan in September 2012. At the same time, no agreement to transfer “Dastan” shares was signed.
JSC “Dastan Transnational Corporation was founded in 1956. It was called “Physical Appliances factory”. The factory is the only modern enterprise in CIS countries to supply torpedoes for Russian navy fleet. The factory previously produced 400 torpedoes a year. These days it produces around 30 or 40 torpedoes a year, which signifies 10-fold decline in production. The cost of 1 torpedo is estimated around USD 1 mln.