GE Forms Russian Joint Ventures

GE reached agreements with state-controlled OAO Inter RAO UES and Russian Technologies Corp. to form a joint venture.
GE Forms Russian Joint Ventures
12/28/2010
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/107788561-GE_and_Russia.jpg" alt="GE VENTURES: Russian Prime Minister Vladimir Putin (R) listens to GE International president and CEO, Ferdinando Beccalli-Falco (L), during their meeting in Moscow on Dec. 27. GE has formed two new joint ventures in Russia. (Ria-Novosti Pool/Alexey Druzhinin/AFP/Getty Images )" title="GE VENTURES: Russian Prime Minister Vladimir Putin (R) listens to GE International president and CEO, Ferdinando Beccalli-Falco (L), during their meeting in Moscow on Dec. 27. GE has formed two new joint ventures in Russia. (Ria-Novosti Pool/Alexey Druzhinin/AFP/Getty Images )" width="320" class="size-medium wp-image-1810449"/></a>
GE VENTURES: Russian Prime Minister Vladimir Putin (R) listens to GE International president and CEO, Ferdinando Beccalli-Falco (L), during their meeting in Moscow on Dec. 27. GE has formed two new joint ventures in Russia. (Ria-Novosti Pool/Alexey Druzhinin/AFP/Getty Images )
U.S. conglomerate General Electric Co. has formed a new joint venture with two Russian firms to produce medical and energy industrial equipment in Russia.

GE reached agreements with state-controlled OAO Inter RAO UES and Russian Technologies Corp. to form a joint venture to assemble and distribute power generation units. GE will contribute 50 percent capital and Inter RAO and Russian Technologies will each contribute 25 percent.

In addition, GE and Russian Technologies are forming a joint venture to develop medical imaging equipment for the Russian market, including CT scanners, X-Ray censors, and MRI scanners.

The medical technologies will be originally sourced by GE, followed by local production at a later date under GE’s supervision. According to GE, Russia intends to invest more than $15 billion in health care between 2010 and 2013.

The joint ventures are an effort by the Russian government to modernize the developing country’s medical and energy technologies.

These strategic partnerships are the latest examples of GE’s long-term commitment to Russia and our ‘company to country strategy,’ in which we work directly with governments to satisfy their needs in rapidly developing markets,” said Ferdinando Beccalli-Falco, GE International’s CEO, in a statement. “We are working with our Russian partners to bring technology to Russia and develop it locally.”

The energy joint venture will develop and manufacture gas turbines to meet increasing Russian demand for energy consumption.

“This will increase the stability and reliability of the energy system,” said Inter RAO Chairman Boris Kovalchuk in a statement released by the company.