Russia Ex-Deputy Minister Buys 75% Stake in Concern Kalashnikov

(Bloomberg) -- Former Deputy Transport Minister Alan Lushnikov bought a 75% stake in Russian weapons maker Concern Kalashnikov JSC, the company said in a press release.

Lushnikov bought TKH-Invest OOO which controls 75% minus one share in Kalashnikov, maker of the legendary AK-47 assault rifle. The remaining 25% stake is held by Rostec, the state-run defense holding. The company is profitable but heavily indebted, debt-rating firm Expert RA said in a report in October.

Kalashnikov didn’t disclose financial terms of the deal. The Kommersant newspaper reported the seller was Alexey Krivoruchko, a deputy defense minister who had taken control of the company from Rostec in 2018 in what analysts said at the time appeared to be an effort to protect it from U.S. sanctions.

Lushnikov worked in a variety of roles in the government from 2012-2018. In 2017-2018 he was a deputy transport minister responsible for supervising parts of the high-profile project to build rail and other links to the bridge to Crimea completed in 2019.

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