Russian anti-monopoly authorities on September 12 rejected a request by German industrial giant Siemens to purchase a controlling stake in a major producer of Russian electricity production equipment.
"Russia's Federal Anti-Monopoly Agency has turned down Siemens for the purchase of a controlling stake in Power Machines," the anti-monopoly agency said in a statement.
"If the deal went ahead the German company's share of the electricity infrastructure market of the Russian Federation would be almost 50 percent, which would give it a dominating position," it said.
Siemens already holds a 25-percent stake in Power Machines and earlier signalled its intention to buy an additional 30.4 percent share currently owned by Russian industrial holding Interros.
Power Machines was set up in 2000, bringing together six major factories making equipment such as turbines for power stations. The company had revenues last year of 567 million dollars (412 million euros).
Anatoly Chubais, the head of Russia's electricity monopoly UES, which also owns a 25-percent stake in Power Machines, earlier said that the majority stake in Power Machines should go to a Russian investor instead of Siemens. Russian officials have called for tighter legislation on foreign investment in sectors of the economy considered strategic, such as energy. A law on such investments is making its way through the Russian parliament.