Putin ordered to save jobs at Bashkir Soda Company

31 March


The issue of managing the Bashkir Soda Company has been resolved - Bashkiria will receive 38.3% of the company's shares and another 11.7% will be managed through organizations subordinate to the regional government, Russian President Vladimir Putin said.

"As you know, in accordance with the court's decision about 96% of the company's shares have been transferred to the ownership of the Russian Federation. It is important to ensure the company's long-term efficient operation and production of competitive products. This, of course, is extremely important in general at all times, but today in particular, bearing in mind that it is about preserving jobs and ensuring people's salaries," Putin said Wednesday at a meeting with members of the government.

"One of the key issues here is competent management of the enterprise. Decisions have been made in this regard. I ask the government to transfer 38.3% of Bashkir Soda Company's shares to the Republic of Bashkortostan, actually this is what Bashkiria had. But in addition to that, I ask you to entrust another 11.7 percent plus one share, as we have also agreed with the authorities of the Republic, to structures which are fully controlled by the Government of the Republic," said the President.

This means that the republic will be able to fully manage the Bashkir Soda Company, he explained. "At the same time, almost 57.7% of shares will remain in federal ownership, and the controlling stake will be, as I have already said, managed together by the republic," the Russian President added.



"Look - after all, the controlling stake in the company left not through the fault of the federal authorities, but due to the relevant decisions of the republic's leadership. There is nothing wrong with privatization, but if it is carried out, it should comply with the goals of this privatization. The company should work effectively and follow certain rules of conduct," said Putin.

He says he expects that in the future BSC will be run "properly" and that Bashkiria's government "will treat the tasks facing this company appropriately".

In his turn, the head of Bashkiria, Radiy Khabirov, thanked the head of the state for his decisions regarding BSC. "For many years the topic of soda privatization was very sensitive for the residents, and today the residents are very grateful for this decision. We understand the measure of responsibility, we understand the role and importance of this enterprise for the economy of our country and for the republic, so we will try to ensure that the enterprise develops and modernizes. Thank you very much for your trust once again," Khabirov said.

BSC drew attention because of the attempt to develop the Kushtau Shikhan. After protests by eco-activists, the work was halted. Bashkirian authorities gave the mountain the status of a specially protected area, and the company said it would continue to develop Shakhtau Mountain below groundwater.

Putin criticized BSC's owners in August 2020, pointing out that the money earned by the company is not invested in the region but is withdrawn by shareholders to their foreign accounts. He instructed the Russian government, together with the leadership of Bashkiria, to investigate the situation around BSC in detail, and the prosecutor's office to check the legality of the transaction, which resulted in the loss of state control over the soda industry in the republic. The Prosecutor General's Office filed a claim to seize 95.72% of the BSC shares in favor of the state, the courts upheld it, and in March the stake was transferred to the Federal Property Management Agency.



GSV "Russia - Islamic World"

Photo: Bashkir Soda Company

Based on materials from RIA Novosti