Huawei sold to MegaFon the equipment for 5 billion rubles

At the beginning of August, 2019 it became known that Huawei sold to MegaFon the equipment for 4.89 billion rubles. The specified amount corresponds to 25.88% of the asset cost of JSC MegaFon Retail, reported on  the website  of disclosure of corporate information. 

MegaFon concluded bargains with Huawei on December 28, 2018 and on January 14, 2019. The Russian operator bought products and component parts, but what, did not specify.^[1]

The companies cooperate long ago. Till 2021 the 7-year contract which cost is measured by tens of billions of rubles works. The agreement provides supply of equipment for construction and upgrade of networks 2G/3G/LTE and also providing the software and maintenance.

Huawei sold to MegaFon the equipment for 5 billion rubles

Cooperation with Huawei became a part of the course towards increase in efficiency of purchases selected by MegaFon. These initiatives were directed, first of all, to centralization of purchases, gain of a command of purchasing function, implementation of the best world practices of procurement management and a supply chain and use of experience of partner operators.

Huawei noted importance of long-term cooperation with MegaFon as the Chinese company considers the Russian market one of the most perspective for itself. According to the president of Huawei in Russia Wan Biao, he hopes that further cooperation with the operator will be successful and mutually advantageous.

Earlier MegaFon transferred the networks in Abkhazia and South Ossetia to the equipment of Huawei. The former equipment supplier for these networks — Nokia Networks — refused continuation of cooperation for the political reasons.

China Development Bank granted to MegaFon the loan in $500 million — only on equipment procurement and services at the Chinese Huawei. 

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