National Guard to purchase armored vehicles worth $30.3mn from Oleg Deripaska’s enterprises

National Guard to purchase armored vehicles worth $30.3mn from Oleg Deripaska’s enterprises
Oleg Deripaska

The document prepared on the instructions of Head of Government, Dmitry Medvedev, does not hide the intention of the Russian authorities to support Oleg Deripaska’s structures that fell under US sanctions.

The Government of the Russian Federation intends to allocate 2 billion rubles ($30 mln) to the troops of the National Guard from the Reserve Fund for the purchase of armored vehicles from the production structures controlled by billionaire Oleg Deripaska. The draft of the relevant decree was published on the portal of legal information regulation.gov.ru.

According to the document, the security agency will purchase at least 600 cars on conditions of 100% advance of state contracts, which, "taking into account the shortest deadlines", will be signed with the only suppliers of equipment manufactured by Ural and Arzamas Machine-Building Plant. The plants are part of the GAZ Group and Russian Machines. Both companies are controlled by Oleg Deripaska and, together with his other structures, fell under US sanctions.

In particular, the National Guard plans to purchase 20 Ural-VV armored vehicles, 598 Ural-4320 off-road trucks and 15 Tiger armored vehicles from Deripaska structures.

The document openly states that the implementation of these measures will not only solve a number of tasks related to the security of the country, but also “will allow for additional capacity utilization of enterprises under sanctions.”

According to the same document, the authorities will also allocate 1.5 billion rubles ($22.7 mln) for subsidies to manufacturers of gas engine equipment to the Ministry of Industry and Trade from the reserve fund of the Russian Federation. Earlier, the Ministry of Industry and Trade offered to provide 11 enterprises of Russian Machines with preferences for purchases at the regional and municipal levels.

On April 6, 2018, Oleg Deripaska, the companies En+, UC Rusal and other structures of a businessman were on the United States Sanctions List (SDN). At the same time, two deadlines were indicated – on completion of business operations and on getting rid of shares and debt obligations. At the moment, GAZ Group is the closest to the sanctions full-size entry into force.

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