Monday, September 23, 2013

Kalashnikov Group Partially Privatized

The AK-47 will be a tad less socialist as private investors will soon be purchasing a 49% stake in the newly formed Kalashnikov Group. The Russian State will still hold the controlling interest, so beyond a mere marketing strategy, the consolidation of several state owned firearms manufacturers under the Kalashnikov Group umbrella has also developed into the partial privatization of a big part of the countries small arms industry.

Photo: Rostec
The influx in funding through private equity with an initial influx of 1.3 Billion Rubles (almost $41 Million USD) as reported by the Kommersant could provide the company with a much needed boost to increase capacity and build further on the well recognized brand, which has been fraught with bankruptcy for its major manufacturers. The complete article discussing the privatization is available at