Armenia expects Russian proposals on reactivation of Nairit chemical plant
05.05.2016,
15:36
Armenia expects Russian state-owned Rostekh Corporation to send its proposals concerning reactivation of Nairit chemical plant in Yerevan before mid-June, energy and natural resources minister Levon Yolyan said today.
YEREVAN, May 5. /ARKA/. Armenia expects Russian state-owned Rostekh Corporation to send its proposals concerning reactivation of Nairit chemical plant in Yerevan before mid-June, energy and natural resources minister Levon Yolyan said today.
RT-Khimkompozit Holding, part of Rostekh and a leading Russian company in the field of polymer composites, was to present its proposals before April 1, 2016.
"We are waiting for their reply and expect to get it before June 16", the Armenian minister said. He said an ad hoc group set up to look into the current state of once the largest producer of synthetic rubber in the former Soviet Union continues its work. According to some estimates, the reactivation of the plant may cost from $200 million to $300 million.
A World Bank study last year recommended that the government shut down Nairit chemical plant. Nairit was the only plant in the Soviet Union to produce chloroprene rubber. The plant was closed in 1989 for environmental reasons and resumed operating partially in 1992. In 2006, 90% of Nairit’s shares were sold to British Rhinoville Property Limited for $40 million. The remaining 10% belonged to the Armenian government.
On January 22, 2014 the Moscow Arbitration Court ruled that Rhinoville Property Limited, the owner of Nairit, pay $107.95 million to the Interstate Bank. Particularly, the court ordered that the company pay $68.6 million of principal debt as well as interests and penalty on an Interstate Bank loan.
In 2015 April l Armenian Central Bank chairman Artur Javadyan said the CIS Interstate Bank could write off Nairit’s debt and return the bank’s shares to the Armenian government. According to him, the plant’s debt stood at 102 billion drams, including 63 billion dram to be paid as loans. In 2016 February then energy minister Zakharyan said Nairit shares were returned to the government. -0-
RT-Khimkompozit Holding, part of Rostekh and a leading Russian company in the field of polymer composites, was to present its proposals before April 1, 2016.
"We are waiting for their reply and expect to get it before June 16", the Armenian minister said. He said an ad hoc group set up to look into the current state of once the largest producer of synthetic rubber in the former Soviet Union continues its work. According to some estimates, the reactivation of the plant may cost from $200 million to $300 million.
A World Bank study last year recommended that the government shut down Nairit chemical plant. Nairit was the only plant in the Soviet Union to produce chloroprene rubber. The plant was closed in 1989 for environmental reasons and resumed operating partially in 1992. In 2006, 90% of Nairit’s shares were sold to British Rhinoville Property Limited for $40 million. The remaining 10% belonged to the Armenian government.
On January 22, 2014 the Moscow Arbitration Court ruled that Rhinoville Property Limited, the owner of Nairit, pay $107.95 million to the Interstate Bank. Particularly, the court ordered that the company pay $68.6 million of principal debt as well as interests and penalty on an Interstate Bank loan.
In 2015 April l Armenian Central Bank chairman Artur Javadyan said the CIS Interstate Bank could write off Nairit’s debt and return the bank’s shares to the Armenian government. According to him, the plant’s debt stood at 102 billion drams, including 63 billion dram to be paid as loans. In 2016 February then energy minister Zakharyan said Nairit shares were returned to the government. -0-
