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RUSSIAN GAS PRODUCERS IN LINE TO BUY ARMENIAN CHEMICALS PLANT
Business New Europe
May 8 2013
bne
May 8, 2013
Russian energy companies Rosneft and Itera are reportedly in talks
with the Armenian government over a possible acquisition of the
country's largest chemicals plant, Nairit.
The largest producer of chloroprene rubber in the Commonwealth of
Independent States, Nairit has been operating at minimal capacity
since a gas price hike in 2010 made production unprofitable. Without
either a strategic investor or a bailout, the company faces bankruptcy
due to a debt burden of around $130m.
According to reports, the Russian oil and gas producers are set
to decide on an acquisition by the end of May. The UK's Rhinoville
Property Limited has held a 90% stake in Nairit since 2006, while the
Armenian government, which owns the remaining 10%, has been trying to
find a way to revive production. Russian business daily Vedemosti,
citing an unnamed company source, writes that Itera is considering
"different variants of participating in the project".
The privately-owned gas producer offered a deal to Yerevan to
take on Nairit in 2011. However, that was turned down in favour
of an alternative investment plan drawn up by Armenian officials
and submitted to state-controlled giant Rosneft instead. Under
that proposed programme, investment of around $512m is needed
to modernise the plant. The government has already applied to the
Eurasian Development Bank (EDB) for $100m.
The talks on finally structuring a deal come as tension builds
around Nairit. On April 29, employees gathered outside both the
Armenian government building and the presidential residence to appeal
for salaries to be paid and production to resume. "We have come to
demand a year's salaries and to let Nairit start operating. For three
years we have been going to Nairit with no certainty over whether
the plant will keep operating or not," the company's press officer
Anush Harutyunyan told Armenia Now.
http://www.bne.eu/story4921/Russian_gas_producers_in_line_to_buy_Armenian_chem icals_plant
Business New Europe
May 8 2013
bne
May 8, 2013
Russian energy companies Rosneft and Itera are reportedly in talks
with the Armenian government over a possible acquisition of the
country's largest chemicals plant, Nairit.
The largest producer of chloroprene rubber in the Commonwealth of
Independent States, Nairit has been operating at minimal capacity
since a gas price hike in 2010 made production unprofitable. Without
either a strategic investor or a bailout, the company faces bankruptcy
due to a debt burden of around $130m.
According to reports, the Russian oil and gas producers are set
to decide on an acquisition by the end of May. The UK's Rhinoville
Property Limited has held a 90% stake in Nairit since 2006, while the
Armenian government, which owns the remaining 10%, has been trying to
find a way to revive production. Russian business daily Vedemosti,
citing an unnamed company source, writes that Itera is considering
"different variants of participating in the project".
The privately-owned gas producer offered a deal to Yerevan to
take on Nairit in 2011. However, that was turned down in favour
of an alternative investment plan drawn up by Armenian officials
and submitted to state-controlled giant Rosneft instead. Under
that proposed programme, investment of around $512m is needed
to modernise the plant. The government has already applied to the
Eurasian Development Bank (EDB) for $100m.
The talks on finally structuring a deal come as tension builds
around Nairit. On April 29, employees gathered outside both the
Armenian government building and the presidential residence to appeal
for salaries to be paid and production to resume. "We have come to
demand a year's salaries and to let Nairit start operating. For three
years we have been going to Nairit with no certainty over whether
the plant will keep operating or not," the company's press officer
Anush Harutyunyan told Armenia Now.
http://www.bne.eu/story4921/Russian_gas_producers_in_line_to_buy_Armenian_chem icals_plant