Gurin calls on Russia to support quality and competitiveness

London - Speaking at the Russian Economic Forum staged in London, Amtel-Vredestein CEO, Alexei Gurin called for President Putin and the Russian Federation to help boost quality, competitiveness and profitability through backing companies in acquiring businesses, technology and skills. He stressed that Russia should use oil windfall revenues to support companies who acquire western businesses and technology.

Not all Russian companies are in a position to effectively leverage their assets or go to the capital markets to finance expansion,” explained Gurin, who used debt to acquire Dutch tyre manufacturer, Vredestein and floated his company on the London Stock Exchange in 2005. Gurin explained that there is a ceiling to how much debt many Russian companies can bear and they often pay a higher rate of interest than their Western competitors. He believes that the Russian government should level the playing field” for Russian companies by injecting capital exchange for equity, or by instituting tax incentives, or by providing loan guarantees to reduce interest rates.

Gurin called for the Russian government to rethink its policy of viewing most investment beyond its borders as capital flight.” The Russian government must learn to recognize that taxes” are not the only dividend it receives from Russian businesses,” said Gurin.

When we purchased the 60 year-old Vredestein Banden company, we approached the transaction much like a reverse merger,” said Gurin. Today, Vredestein executives represent 50% of the Amtel-Vredestein Executive Board; they oversee our Russian factories, research & development and the group's finance team. We acquired experience, technology and an important brand, Vredestein - the only ultra-high performance designer tyre in the world. And we are leveraging these assets throughout our organization. The Vredestein business is also enhanced by access to lower costing, Russian production and a new, rapidly expanding market for its tyres. Everyone wins.”

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Press release from Amtel-Vredestein