Haykakan Zhamanak: Talks on Nairit Plant on brink of collapse

The talks between the Armenian government and Itera Group of Companies, Russia, regarding Nairit Plant are on the brink of collapse, “Haykakan Zhamanak” says, citing its sources. The sides have failed to reach an agreement on the key issues. The Russian company demands that Nairit’s debts be cancelled and the plant be sold as a debt-free enterprise. Such demands are not advantageous to the Armenian side.

“The problem is that dirty tricks were used at Nairit Plant for years and the industrial giant has been milked to such a degree that nobody knows today how much debt the plant has, how the debt accumulated, and who the creditors are. Several offshore companies have cashed in on the plant for years, making profits of dozens of millions and bankrupting the plant, to put it mildly. According to some estimates, Nairit owes various banks and companies $250-300 million, and half a billion dollars is needed for the plant’s modernization,” the paper writes.