General Electric Co. (GE) said Monday that it has signed a framework agreement with two Russian companies to form joint ventures in Russia in the field of healthcare and power generation by localizing technology, manufacturing and expertise. Financial details of the transactions were not disclosed.
Under the framework agreement, GE plans to form a joint venture in the power generation sector with Russian Technologies State Corporation and electric utility OAO Inter Rao UES JSC to make, assemble, sell and service energy efficient, heavy-duty gas-fired power generation turbines in Russia.
In the healthcare sector, GE and Russian Technologies plan to form a joint venture to make and sell high-tech medical diagnostic equipment in Russia.
Inter RAO is one of Russia's largest electric power companies, with the total installed capacity of the company's electric power stations being about 18,000 MW. Russian Technologies State Corp. was set up in accordance with the Federal Law of the Russian Federation in November 2007. The company's goal is to assist in the development, production and export of high-tech industrial products from Russia.
The framework agreement envisions production of GE's energy and medical equipment in Russia in addition to technology transfer. The production of component parts for the joint ventures will be later done in Russia. GE noted that until local production of components can be established in Russia, they will be imported from other GE locations or qualified suppliers.
In the energy sector, GE will form a jointly-owned entity with the two Russian companies to make, sell and service GE's heavy-duty 6FA gas turbines at a factory to be built near the Russian city of Rybinsk. The turbines are expected to address Russia's growing need for high-performance, mid-sized power blocks in combined heat and power applications.
Russian Technologies and Inter RAO will each hold a 25% stake in the energy joint venture, while GE will hold the remaining 50% stake.
According to Russia's Energy Ministry, the country needs to invest US$80 billion in the next 10 years to address aging generation assets. Official Russian government forecasts say Russia needs to build 80 gigawatts of thermal power generation capacity in the next 20 years.
GE and Russian Technologies expect the healthcare joint venture to start with production of CT scanners and later expand to other diagnostic equipment such as angiographs, MRI, ultrasound, digital X-ray, PET, gamma cameras and medical devices.
GE noted that the joint venture may use the recently established joint GE Healthcare-Medical Technologies Ltd. CT scanner assembly facility in Moscow. In May 2010, GE Healthcare installed the first Russian-assembled 16-slice CT scanner in a Moscow hospital. Through the end of November, the CT scanner has been used to perform more than 2,000 exams.
While the healthcare components will initially will be sourced from GE, they will shift later to local production by qualified Russian suppliers. Russian Technologies will hold a 50% stake in the healthcare joint venture, while GE will hold the remaining 50% stake.
The Russian government plans to spend more than US $15 billion from 2011-2013 on healthcare. GE estimates Russian demand today for CT scanners alone at 3,000 units.
GE International President and CEO Ferdinando Beccalli-Falco, said, "These strategic partnerships are the latest examples of GE's long-term commitment to Russia and our 'company to country' strategy, in which we work directly with governments to satisfy their needs in rapidly developing markets. We are working with our Russian partners to bring technology to Russia and develop it locally."
GE has 2,500 employees in Russia and reported 2009 revenues of US$1.6 billion in that country. The company has established training centers for energy and healthcare in Moscow.
In Monday's regular trading session, GE is trading at $18.09, up $0.05 or 0.28% on a volume of 5.82 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.