Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

25 Jul 2006



PSD disclosed:

22 Jun 2006

Project Description

Pre-IPO financing of JSC Sitronics to facilitate capital expenditures programme and M&A activity of the client.

Transition Impact

The Project will demonstrate the attractiveness of investing in Russian high-tech industries and will increase the flow of private investment into the development of new technologies, processes and products. It should be seen as part of a greater effort to help to diversify the Russian economy away from dependence on natural resources-based industries, an important goal in achieving long-term sustainable economic growth.

The Project will contribute to the revival and further development of a network of local suppliers for Russian technology industries. It will thus contribute to unlocking and developing Russia’s significantly underutilised intellectual resources by stimulating sustainable and solvent demand for their services.

The project will involve significant corporate governance improvements in the Company including in the context of a planned IPO.


The Client

JSC Sitronics, Russia’s largest diversified industrial and consumer electronics manufacturer, majority owned by Joint Stock Financial Company "Sistema", one of the largest privately owned Russian financial-industrial groups (“the Sponsor” or “JSFC Sistema”).

EBRD Finance

The Bank will participate with USD 80 million in the equity issuance of JSC Sitronics.

Project Cost

USD 287 million.

Environmental Impact

Screened C/1 requiring an environmental, health, safety and labour audit of the Company, and its operations and facilities. Environmental issues associated with this type of projects might include waste management and implementation of the EU regulations on recycling of packaging waste and electronic equipment as well as on the product related requirements in the future.

The environmental due diligence by independent international consultants is underway and will address environmental, health and safety issues at key production sites and include a gap analysis to assess current compliance with pertinent international requirements and EU regulations (including the IPPC, VOC and RoHS Directives among others). EBRD has also held preliminary meetings with the financial, environmental and human resources management of the Company and conducted site visits of selected facilities and has identified no social and labour related issues or incompliance with the Russian Federation environmental legislation to date.

An Environmental Action Plan will need to be developed as part of the environment due diligence to address corrective measures needed within the Sitronics Group. The EAP will need to be agreed between the Client and EBRD prior to the Board Review of the project.

The environmental section of the PSD will be updated once the environmental due diligence is complete.


Technical Cooperation


Company Contact



Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

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