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RIA Novosti

Russia

Opel deal could improve Russian economy - Medvedev

21:18 14/08/2009
SOCHI, August 14 (RIA Novosti) - Russian investment in the German economy, including as part of the recent Opel bid, could improve the structure of the Russian economy during the global downturn, the Russian president said on Friday.

Dmitry Medvedev, who met German Chancellor Angela Merkel in the south Russian city of Sochi, said the Magna-Sberbank purchase of Opel could also "improve our resistance to future crises."

A source close to the talks said earlier on Friday Russia was ready to provide political support for Canadian automaker Magna's bid, backed by Russia's Sberbank, to buy a stake in GMs European unit Opel.

Merkel reiterated German backing for the Magna-Russia bid. The main rival for Opel is Belgium-based investor RHJ International, but Merkel stated on Tuesday that she would be prepared to intervene personally in favor of the Canadian company.

"I have a clear preference for Magna and want to make that clear again," Merkel told RTL television. "If it is necessary, I will join in of course."

However, General Motors has shown uncertainty over Magna's bid, saying it is not in favor of a third corporate party in the deal, much less a Russian state bank.

Medvedev also said that bilateral investment between Russia and Germany had increased since the start of the year despite the ongoing economic crisis, although he did not provide any concrete figures. In 2008 trade almost reached $68 billion.

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