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. Last Updated: 07/27/2016

Final Baltic Shipyards Package Set for Auction

ST. PETERSBURG -- The final package of government-held shares of one of the city's major shipbuilding yards is scheduled to go to auction at the end of January, St. Petersburg Property Fund officials have announced.

Four percent of Baltic Shipyards is slated for the auction block Jan. 31, completing the privatization process begun in 1992. A total of 30,050 regular shares, each with a nominal value of 200 rubles (4 cents), will be sold at a cost of 30,500 rubles per share.

A final 5 percent that now belong to the property fund is likely to be turned over to the enterprise itself, said company vice president Valery Venkov.

Major shareholders currently include the workers' collective, which owns 20 percent, and the Russia-based company East, which has a 15 percent stake. The local Promstroibank owns 8 percent.

Founded in 1856, Baltic Shipyards became a major producer of chemical cargo ships and atomic icebreakers during Soviet times. Like other enterprises in the former Soviet military-industrial complex, the factory, with its 8,000 workers, has fallen on hard times in the process of conversion and privatization. Most of the city's other shipyards remain predominantly in state hands, with the major exception of the Severnaya Verf shipyards.

Last year, Baltic Shipyards received a $300,000 grant from the U.S. Trade and Development Agency to work out a plan for the environmentally safe disposal of dangerous elements on old decommissioned ships. The project proposal, done in cooperation with the law firm McDermott, Will & Emery, is expected to be completed shortly.