The Sovelmash team has encountered systemic obstruction in obtaining the permit to commission the enterprise. At the same time, project development continues — a new significant stage has begun — preparations for the valuation of Sovelmash’s assets.

Working with documentation: a strategy shift and a new direction

• The company is compiling a body of evidence of systemic violations by the supervisory authorities. And if the commissioning permit is not issued, then, following the fourth and fifth denials, Sovelmash plans to file a lawsuit.

• Sovelmash specialists have begun preparations for the valuation of tangible and intangible assets — they have started searching for a company that will handle the valuation. This is an important step toward transforming Sovelmash into a joint-stock company and transferring shares to project participants.

• The company’s accounting department is preparing the annual report for 2025 and for the first quarter of 2026.

Share transfer and next steps

• The transfer of shares to project participants is planned for this year, but it depends on the commissioning timeline.

• First, Sovelmash will be transformed into a non-public joint-stock company. The sale of shares within the company is possible, but the mechanisms must be governed by the company’s charter.

Commercial orders and in-house products

• Sovelmash is ramping up commercial orders. And although this is not yet the production of its own products, it enables the company to cover current expenses, including partially paying for tooling, despite a reduced inflow of project funding.

• At the same time, the company is actively preparing to launch its own products, manufacturing parts for an angle grinder and performing other work. This involves dealing with various kinds of challenges. For example, resolving issues with Chinese suppliers: the mating dimensions of the delivered tooling did not match the stated specifications — Sovelmash specialists are reworking it in-house.

• The availability of a coordinate measuring machine and the introduction of vibratory finishing, ultrasonic cleaning, and other technological processes are enabling higher product quality. Customers are taking notice.

Overall takeaway from Dmitry Duyunov

“Yes, it’s a crisis, and far from easy. But no one promised it would be easy, cloudless, and that everything would be as rosy as on the Côte d’Azur. No, our climate is harsher.
The entire team — those who are truly engaged, who work with all their heart — these are real people. They understand what they are doing, why they are doing it, and they understand what lies ahead. But I will repeat once again: as of today, there is no alternative to combined-winding motors. And nothing is visible on the horizon yet.”

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*The translation is done with the help of artificial intelligence.

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