Government to decide on Nairit only after world bank audit over– minister says

YEREVAN, February 4. / ARKA /. The Armenian government will decide on the future of Nairit chemical plant in Yerevan only after an audit conducted by the World Bank is over, energy and natural resources minister Yervand Zakaryan said today during a parliamentary Q&A session.

He said the government held several meetings with representatives of the plant and discussed the issue in the ministry of energy and natural resources. He said the World Bank is conducting a technical audit of the plant and the results will be announced later this month. This will be followed by the government’s decision on the fate of the plant, he said.

He said the current owner of the plant -Rhinoville Property Limited consortium has investment commitments and if the audit finds they were not fulfilled the plant is to become the property of the Armenian government.

"But the problem is that the shares of the plant were deposited as collateral at the Interstate Bank in Russia.  Armenia’s Central Bank and the government are negotiating now with the Interstate Bank and Russia’s Central Bank. Our expectations are realistic, we hope that this issue will be resolved positively in few months," said Zakaryan.

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% belong to the Armenian government. 

In late December 2013, Russian Rosneft, Pirelli Tyre Armenia and Rosneft-Armenia signed a memorandum to produce rubber at the plant. Former prime minister Tigran Sargsyan said that Rosneft wanted to invest $400 million in the new plant.  The plant has been idle since 2010.  It has since accrued huge back wages.-0-