Announcement

Collapse
No announcement yet.

Rosneft Investment Plans In Nairit

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Rosneft Investment Plans In Nairit

    ROSNEFT INVESTMENT PLANS IN NAIRIT

    Vestnik Kavkaza, Russia
    March 3 2014

    3 March 2014 - 10:16am

    By David Stepanyan, Yerevan. Exclusively for Vestnik Kavkaza

    Armenian Prime Minister Tigran Sargsyan said in late February that
    Rosneft (Russia) was ready to invest in the construction of a new
    factory at Nairi for $500 million. Sargsyan and his Russian counterpart
    Dmitry Medvedev and Rosneft President Igor Sechin reached such an
    agreement in Sochi. The state company and an unnamed investor agreed to
    finance an investment program developed by Jakobs, an international
    company, to modernize Nairit. The sides are working on technical
    details of the investment projects, place for construction of a new
    tire factory, its links with Nairit, necessary legislative procedures
    and benefits. In Sargsyan's words, the government of Armenia will
    grant the investment program for Nairit status of a free economic zone.

    Talks about the merging of Nairit and Rosneft started between Igor
    Sechin and the Armenian government in Yerevan in late 2013. As a
    result, Rosneft, Pirelli Tyre Russia S.p.A., Oil Techno and the
    Armenian Energy Ministry signed a memorandum of understanding and
    formation of a joint venture to produce butadiene-styrene rubber.

    Rosneft investments and Pirelli projects in advanced rubber production
    will help open a modern facility to produce high-tech eco-friendly
    tires in Nairit. However, the project faces problems rooting from
    the debts and bankruptcy of Nairit.

    Nairit has accumulated a debt of $400 million, despite being closed
    down since 2010. 90% of the factory's shares were sold to Rhinoville
    Property Limited (UK) for $40 million, 10% belong to the government
    of Armenia. Rhinoville Property Limited received a loan of $70
    million at the CIS Interstate Bank. The bank granted the company
    $90 million more in 2009 and $10 million in 2010, making a total
    of $170 million. The factory was shut down in 2010 but its owners
    have not paid a cent to the bank. The factory generated a debt of
    $400 million together with the interest rate and overdue penalties,
    becoming bankrupt. It is noteworthy that the owners of the factory
    have not only failed to launch the factory after receiving the loan,
    they also owe workers salaries for 12 months.

    There is little chance that Rosneft would pay the debt of $400
    million. The grave situation around the crown jewel of Soviet industry
    will only be clarified after the Armenian government gives guarantees.

    Rosneft needs to put Nairit on the asset list in order to revive the
    chemical giant.

    The Dashnaktsutyun fraction at the parliament proposed formation of
    a temporary commission to study the causes of the Nairit debts. The
    republican majority rejected the idea and believes that it would be a
    better idea to tie it with Rosneft talks. Considering the formation
    of an independent commission for Nairit would give many answers,
    Dashnaktsutyun published a statement about credits and offshore
    companies and demanded the parliament majority to give answers.

    Millions of dollars from the CIS bank were certainly received under
    surveillance of the Armenian government, owner of 10% of shares in
    Nairit, and the loans for the closed down factory were affected by
    frauds and machinations causing the bankruptcy. The prime minister
    has recently tried to deny accusations of Armen and Ashot Sarkisyans
    for purposeful bankruptcy of the facility. He said that he had had
    nothing to do with machinations in 2006 when he had been President
    of the Central Bank. The rebuttal seems rather languid because the
    prime minister's skills in financial operations and ability to "cover
    things up" are legendary.

    http://vestnikkavkaza.net/analysis/economy/52058.html

Working...
X