Russia demands 75% of shares of Kyrgyz defense complex

Russia demands 75% of shares of the Kyrgyz defense enterprise Dastan, instead of 48%, in exchange for writing off a debt of $180 million, Kommersant reports.

Dastan’s property dropped in price in 2009, making the 48% share no longer worth writing off $180 million.

Kyrgyz President Almazbek Atambayev said 3 years ago that Kyrgyzstan offered Russia 48% of the shares in the facility and the building of a Russian trade office in Bishkek to write the debt off. Such a document was signed by the head of the committee for management of state property Tursun Turdumambetov and sent to Moscow.

The Kyrgyz president insists on the 48%-scheme. Kyrgyzstan owns 80% of the factory, 20% belongs to private structures.

The Dastan Transnational Corporation was formed in 1956 as the factory of Physical Equipment. It developed numerous torpedoes, self-targeting systems, influence fuses, TV communication systems and equipment for control and estimations.

Constantine Romodanovsky, head of the Federal Migration Service of Russia, said on Wednesday that Russia denounces the simplified citizenship-granting mechanism for Kyrgyzstan. The official noted that it has nothing to do with relations with Bishkek.