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Vestnik Kavkaza, Russia
Sept 7 2014
Will secrets of the Nairit factory be unveiled?
7 September 2014 - 6:27pm
Employees of the largest chemical factory in Armenia, "Nairit",
protest in front of the government building
Will secrets of the Nairit factory be unveiled?
Employees of the largest chemical factory in Armenia, "Nairit",
protest in front of the government building
Susanna Petrosyan, Yerevan. Exclusively for VK
On September 4 workers of one of the largest chemical factories in
Armenia, "Nairit", staged a protest in front of the government
building. They demanded that the government pay them 18 monthly
salaries which the government owes them. The proposal of Minister of
Energy Yervand Zakarian to pay them one month's salary was met without
enthusiasm. The minister said that the government will solve the
problems of the factory and its employees.
This is not the first protest organized by Nairit workers. This has
been going on for more than four years. Even during the election
campaign, Serzh Sargsyan said that he had the political will to
relaunch the factory. However, to this day the situation has not
changed.
"Nairit" was the largest producer of chloroprene rubber in the USSR.
Problems started with the collapse of the Union. Armenia, in a state
of war, and having serious socio-economic problems, was not able to
solve the problems of the giant, aimed at servicing the whole Soviet
Union.
"Nairit" worked with varying degrees of success: at times certain
production departments were working, at other times they remained
closed in connection with serious financial problems. One of the
reasons for the crisis was the decreasing demand for chloroprene
rubber in the world due to the economic crisis. Moreover, it is faced
with a clear challenge of upgrading the outdated technology, paying
debts for rent, electricity, gas, etc..
Wage arrears, which currently amount to about $13 million, are by far
not the only financial problem of the factory. According to
information announced in February, the total debt of the plant is $400
million.
In 2006, "Nairit" was purchased by the British company Rhinovile
Property, which owns a 90% stake, the remaining 10% is owned by the
government. However, despite the new owner, many problems remained
unresolved. According to the former factory director, Karen Israelian,
if Rhinoville Property fulfilled its investment obligations on time
and invested the promised 60 million dollars in upgrading the plant,
"Nairit" would not be in the situation it is now. Israelian believes
that the government, with its 10% stake, should also be accountable,
because it did not pressure the British company.
The Armenian press reports that "Nairit" began to acquire debt
starting from 2006, when Rhinoville Property opened a credit line
worth $70 million with the CIS Interstate Bank. In 2009, the bank gave
the company a loan of $90 million, and an additional $10 million in
the next year. Given that in 2010 the plant was shut down and its
owners have not paid a penny to the creditor, the debt more than
doubled. Moreover, in March 2014 the Moscow Arbitration Court granted
a right to the CIS Interstate Bank to demand $107,950,000 from
Rhinoville Property.
However, it is not only a question of paying penalties for financial
noncompliance. The Armenian government has still not provided an
answer to the question of when and on what the $170 million loan was
spent? In February this year the parliamentary opposition accused the
now former Prime Minister Tigran Sargsyan, whose two brothers have
occupied the directorial seat of "Nairit", of deliberately bankrupting
the factory. The ex-prime minister denied any involvement of his
brothers in it. Sargsyan, during whose premiership the second and
third tranches of the loan were allocated, said he knew nothing about
the fate of the $170 million. Law enforcement agencies have also not
been paying due attention to the fate of the loan.
Given the scandal, the government has initiated negotiations with
Rosneft. In December 2013 the Ministry of Energy of Armenia and the
Russian company Rosneft, as well as Pirelli Tyre Russia SpA and Oil
Techno, signed a Memorandum of Understanding in Yerevan. The
memorandum provides for the establishment of a joint venture for the
production of styrene-butadiene rubber in Armenia at the Nairit plant.
Rosneft will play the role of the leading investor in the project.
The head of the Ministry of Energy said that in one month Rosneft is
expected to present its findings about the possibility of relaunching
"Nairit". It is still not clear whether the Russian company will want
to go ahead with the plan and pay the $400 million debt of the plant,
given the obscure history of the company and the mysterious
disappearance of the loan. Yervand Zakarian's words during a meeting
with the participants of the protest on September 4 is tacit proof of
it. In his speech he mentioned that the Armenian government should not
rely only on Rosneft and needs to develop its own plan for the
rehabilitation of the plant. He also said that, on behalf of the prime
minister, the government is currently developing a package of measures
which will help relaunch the plant. It will be submitted by September
15.Employees of the largest chemical factory in Armenia, "Nairit",
protest in front of the government building
http://vestnikkavkaza.net/analysis/economy/59689.html
From: Baghdasarian
Sept 7 2014
Will secrets of the Nairit factory be unveiled?
7 September 2014 - 6:27pm
Employees of the largest chemical factory in Armenia, "Nairit",
protest in front of the government building
Will secrets of the Nairit factory be unveiled?
Employees of the largest chemical factory in Armenia, "Nairit",
protest in front of the government building
Susanna Petrosyan, Yerevan. Exclusively for VK
On September 4 workers of one of the largest chemical factories in
Armenia, "Nairit", staged a protest in front of the government
building. They demanded that the government pay them 18 monthly
salaries which the government owes them. The proposal of Minister of
Energy Yervand Zakarian to pay them one month's salary was met without
enthusiasm. The minister said that the government will solve the
problems of the factory and its employees.
This is not the first protest organized by Nairit workers. This has
been going on for more than four years. Even during the election
campaign, Serzh Sargsyan said that he had the political will to
relaunch the factory. However, to this day the situation has not
changed.
"Nairit" was the largest producer of chloroprene rubber in the USSR.
Problems started with the collapse of the Union. Armenia, in a state
of war, and having serious socio-economic problems, was not able to
solve the problems of the giant, aimed at servicing the whole Soviet
Union.
"Nairit" worked with varying degrees of success: at times certain
production departments were working, at other times they remained
closed in connection with serious financial problems. One of the
reasons for the crisis was the decreasing demand for chloroprene
rubber in the world due to the economic crisis. Moreover, it is faced
with a clear challenge of upgrading the outdated technology, paying
debts for rent, electricity, gas, etc..
Wage arrears, which currently amount to about $13 million, are by far
not the only financial problem of the factory. According to
information announced in February, the total debt of the plant is $400
million.
In 2006, "Nairit" was purchased by the British company Rhinovile
Property, which owns a 90% stake, the remaining 10% is owned by the
government. However, despite the new owner, many problems remained
unresolved. According to the former factory director, Karen Israelian,
if Rhinoville Property fulfilled its investment obligations on time
and invested the promised 60 million dollars in upgrading the plant,
"Nairit" would not be in the situation it is now. Israelian believes
that the government, with its 10% stake, should also be accountable,
because it did not pressure the British company.
The Armenian press reports that "Nairit" began to acquire debt
starting from 2006, when Rhinoville Property opened a credit line
worth $70 million with the CIS Interstate Bank. In 2009, the bank gave
the company a loan of $90 million, and an additional $10 million in
the next year. Given that in 2010 the plant was shut down and its
owners have not paid a penny to the creditor, the debt more than
doubled. Moreover, in March 2014 the Moscow Arbitration Court granted
a right to the CIS Interstate Bank to demand $107,950,000 from
Rhinoville Property.
However, it is not only a question of paying penalties for financial
noncompliance. The Armenian government has still not provided an
answer to the question of when and on what the $170 million loan was
spent? In February this year the parliamentary opposition accused the
now former Prime Minister Tigran Sargsyan, whose two brothers have
occupied the directorial seat of "Nairit", of deliberately bankrupting
the factory. The ex-prime minister denied any involvement of his
brothers in it. Sargsyan, during whose premiership the second and
third tranches of the loan were allocated, said he knew nothing about
the fate of the $170 million. Law enforcement agencies have also not
been paying due attention to the fate of the loan.
Given the scandal, the government has initiated negotiations with
Rosneft. In December 2013 the Ministry of Energy of Armenia and the
Russian company Rosneft, as well as Pirelli Tyre Russia SpA and Oil
Techno, signed a Memorandum of Understanding in Yerevan. The
memorandum provides for the establishment of a joint venture for the
production of styrene-butadiene rubber in Armenia at the Nairit plant.
Rosneft will play the role of the leading investor in the project.
The head of the Ministry of Energy said that in one month Rosneft is
expected to present its findings about the possibility of relaunching
"Nairit". It is still not clear whether the Russian company will want
to go ahead with the plan and pay the $400 million debt of the plant,
given the obscure history of the company and the mysterious
disappearance of the loan. Yervand Zakarian's words during a meeting
with the participants of the protest on September 4 is tacit proof of
it. In his speech he mentioned that the Armenian government should not
rely only on Rosneft and needs to develop its own plan for the
rehabilitation of the plant. He also said that, on behalf of the prime
minister, the government is currently developing a package of measures
which will help relaunch the plant. It will be submitted by September
15.Employees of the largest chemical factory in Armenia, "Nairit",
protest in front of the government building
http://vestnikkavkaza.net/analysis/economy/59689.html
From: Baghdasarian