Vekselberg denies Kremlin influence

Russian billionaire investor Viktor Vekselberg has launched a defense of his expanding Swiss business empire by rounding on critics who dubbed him a Kremlin puppet.

Vekselberg's holding company, Renova, has sent shockwaves through the Swiss manufacturing sector in the past two years by snapping up established companies such as Oerlikon and Sulzer.

Speaking at the Swiss Economic Forum in Thun on Thursday, Vekselberg dismissed whispers that his operations are financed by Russian state funds and that he plans to make a quick ruble by selling off Swiss firms.

Criticism has focused on Vekselberg's association and regular meetings with former Russian president - and now prime minister - Vladimir Putin.

Newspaper reports in September said former Russian Economy Minister German Gref had threatened Swiss business interests in Russia when the Federal Banking Commission launched investigations into Renova's aggressive takeover tactics.

"The Russian state has no part in [Renova] but we are confronted in Switzerland with comments that Renova is in the hand of the Kremlin. My meetings with the president have been understood as me receiving instructions," Vekselberg told the audience of heads of small and medium-sized businesses.

"This is just total nonsense. Our investments in Swiss products have nothing to do with the Russian government or Russian state capital."

Corruption

Vekselberg admitted that Russia's rapid rise as a global economic power had resulted in problems - not least corruption. However, he insisted that Russia was on the right path to "conquering this horrible evil."

"Europe and the United States took their time to build their market economies over two centuries. Russia had to do this in 15 years," he said. "Given this rate of expansion, mistakes were made, but we have also learned from our mistakes."

In recent weeks Renova has emerged victorious from a power struggle with former ally, the Austrian Victory group, to wrestle total control of engineering companies Oerlikon and Sulzer.

Various media reports have alluded to secret plans to merge these firms with other Swiss industrial companies to create a manufacturing giant.

Vekselberg did not comment on these rumors, but was more interested in dismissing concerns that he is a speculator intent on selling off his acquisitions to the highest bidder in the near future.

'Russian madness'

The Russian insisted his business philosophy was based on the principles of trust, honor and respect.

"In 18 years [since Renova was founded] I have never sold anything of significance because each company is something akin to a child to me - perhaps I am sentimental. Whether you like it or not we are here for the long run," he said.

"We would like to become fully fledged business citizens of your hospitable country. We are making every effort to understand your social, historical and cultural traditions. We hope in return to bring a bit of Russian madness and a faster pace."