Russian Vneshtorgbank buys 5 per cent of EADS

Deutsche Presse Agentur
Published: Monday September 11, 2006

Paris/Moscow- Russia's state-controlled Vneshtorgbank (VTB) has bought a 5.02 per-cent stake in EADS, a spokesman for the European aerospace and defence giant said Monday. Vneshtorgbank declined to comment on the acquisition although the Russian business newspaper Vedomosti reported late last month that the bank paid around one billion US dollars for almost five per cent of the European Aeronautic Defence and Space Company.

VTB was also said to be in talks on enlarging its stake in EADS, which is the parent company of the aircraft builder Airbus.

According to Russian media, government officials said Moscow in the long-term wanted to build up its influence in the management of EADS.

The European and Russian aviation industries already forged close links through joint projects, with EADS now in possession of ten per cent of the largest private Russian plane builder Irkut.

© 2006 DPA - Deutsche Presse-Agenteur