One of Russia's largest microchip factories declared bankrupt

One of Russia's largest microchip manufacturers, Angstrem (Zelenograd), has been declared bankrupt.

Source: The Moscow Times

Details: The company has been put under observation, and the decision to declare the debtor bankrupt was made at the request of Zenit Bank on 2 December 2024. As the case file shows, the court ordered in November 2019 that RUB 1 billion (about US$9.94 million) in compensation be paid out to Zenit by Angstrem, but the plant has not done so in more than six years.

The plant was a landmark for Russia and was supposed to become the largest player in the production of microchips. It was supervised by Leonid Reiman, a former communications minister close to Putin.

He received US$1 billion in state funding – his company attracted a €815 million credit line from the Russian state development corporation and investment company VEB in 2008 to set up production of processors, smart cards, and electronic passports. The project was supported by the Russian government and the Security Council.

Having accumulated more than RUB 100 billion (about US$1 billion) in debts, Angstrem suddenly stopped paying back its loans. In 2014, Angstrom did not have the funds to continue its operation, the tax service said.

The tax service said Angstrem has 108 enforcement proceedings worth RUB 147.6 billion (about US$1.5 billion). It also has unfinished legal proceedings worth more than EUR 500 million.

Background: Russia has been circumventing sanctions by purchasing electronic components from Western companies for its missiles, paying twice as much for them.

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