Arthur Andersen Announces Joint Venture With Soviet Companies
CHICAGO (AP) _ Arthur Andersen & Co. has announced it will set up a joint venture with two Soviet businesses, becoming the first U.S. public accounting firm to do audit work in the Soviet Union.
The Soviet Ministry of Finance has approved the joint venture, called Arthur Andersen in the U.S.S.R., according to a statement issued Monday by the Chicago-based accounting firm.
Andersen has a 70 percent stake in the venture, with Promstroybank of the U.S.S.R., the largest bank in the country, having 30 percent and NPO Dinamo Moscow, an engineering industrial company, having 5 percent.
″As part of the Arthur Andersen audit, tax, financial and business consulting unit, this joint venture will provide assistance to Soviet state and other enterprises in adapting themselves to free market management techniques,″ according to the company statement.
″It will also consult with Soviet Western joint ventures and is the first western organization to audit such ventures.″
Andrea Von Knoop was named general director of the new venture. Von Knoop is a former employee of the Deutsche Bank.
According to the statement, the joint venture, based in Moscow, marks the re-emergence of Andersen operations in the Soviet Union. After eight years of activity there, the firm suspended Soviet operations in 1983, the statement said. But it also said that for more than a year, teams from Andersen have been working in the Soviet Union on various projects.