Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Sistema's $180M Profits at Pre-Crisis Level

The AFK Sistema holding has posted $180 million in net profits for 1999 on an annual turnover of $1.5 billion.

At a presentation in Paris to potential investors last week, AFK Sistema vice president Anatoly Adamishin also announced that the diverse holding's assets stood at $2.8 billion.

The results put the holding company back close to where it was at the beginning of 1998, when it reported $3 billion worth of assets and a pretax profit of $266 million, on revenues of more than $1 billion.

Sistema, a sprawling, city-government-friendly holding, already has interests in fixed-line and cellular telephony, banking, media, oil and insurance.

The holding is offering itself as a potential partner in telecommunications, electronics, machine-building and consumer goods production, Sistema spokesman Gennady Talalayev said.

The company is also seeking to expand its foothold in Moscow's gasoline retail sector, where its subsidiary Kedr-M already holds a 7 percent market share, Prime Tass reported.

Sistema, established in 1994 and run by Vladimir Yevtushenkov, a friend of Moscow Mayor Yury Luzhkov, is centered on the Moscow Telephone Co., or MGTS. It also has stakes in city property and numerous Moscow-based businesses.

Talalayev said the company was offering its "Russian expertise" on local markets to potential foreign partners. He somewhat randomly cited garment production in the Ivanovo region as an example of a possible project.

"We have never worked in Ivanovo, for example, but if any French company wants to work there, we can help them to get in contact with Ivanovo," Talalayev said.

"We have our contacts with federal and regional power bodies and so on and so forth, and we need very good international investors ... to be pragmatic in estimating the potential of the Russian market," Talalayev said.

Sistema's conditions for partnerships with new foreign investors had yet to be established, he added.