ArmInfo. For now, there are no specific results of the talks between the Armenian Government and RT-Khimkomposit Holding (Russia), Armenian Minister of Energy and Natural Resources Levon Yolyan told reporters on March 31. However, the negotiations are still going on, he said. To note, the talks are to decide the future of the Nairit Plant in Yerevan.
In the minister's words, though the Russian side promised to give a reply before April 1, the lack of results as of March 31 does not at all mean that the talks have reached a deadlock.
At the same time, Levon Yolyan confirmed his willingness to work with all parties interested in reactivation of the Nairit Plant. "During a meeting with the former staff of the plant, I authorized the Nairit Plant employees to find possible investors and investment programs on reactivation of the plant," he said.
To recall, on March 16, Minister Yolyan said that RT-Khimkomposit Holding, which is a part of "Rostekh" State Corporation, is preparing proposals to the Armenian Government for reactivating Nairit Plant. At the same time, by the minister's order, a working group has been set up to research the current condition of Nairit Plant CJSC and the further steps to help the plant overcome the current situation. The working group is headed by Deputy Minister of Energy and Natural Resources L.Shahverdyan, and includes representatives of the Ministry, Nairit Plant and Yerevan Thermal Power Plant. The Energy Minister has instructed the working group to submit the proposals on development of Nairit Plant in the shortest time possible.
On March 21, the minister of energy and natural resources held a meeting with the employees of Nairit Plant and called for consolidation of efforts towards reactivation of the plant. In Nairit ex-director Karen Israelyan's word, Levon Yolyan stressed the need to join the efforts of all the parties concerned.
To note, Nairit Plant has been idle since April 2010. At the moment the debts of Nairit Plant amount to 50 billion AMD (about 130 million USD). The Plant's shares were given as security against the CIS InterStateBank's 70 mln USD loan provided in 2006 for 5 years - till late Dec 2011 - at 12.5% p.a. In 2006, 90% of Nairit Plant's shares were sold to Rhinoville Property Limited (UK). The latter owns an 89,999% stake in the plant, Armenian Ministry of Energy and Natural Resources - 4,496%, Gazprom Armenia CJSC (previously ArmRusgasprom) - 3,596%, and Yerevan Thermal Power Plant - 1,907%. In 2015 the World Bank conducted a financial and technical audit at Nairit Plant at the request of the Armenian Government. The WB considers the re-launch of the plant to be inexpedient because it will need at least $250 mln. But even if investors are found, the WB experts do not think the product will be competitive, because it will have a high prime cost. Most experts say that the results of the WB audit can be considered as recommendations to the Plant's bankruptcy process.