There have been publications in the Russian Media covering the Armenian-Iranian relationship, which wrote that Armenia might suggest Iran to buy “Nairit Plant”. The existing owner of “Nairit” is the “Rainovil Property Limited” English-Irish company, which is in fact managed by CIS intergovernmental bank officials. Yesterday we interviewed RA energy minister Armen Movsisyan, who answered our questions concerning the possible sale of “Nairit” company.
– Might the factory be sold?
– “Nairit plant” has an owner and the government is not authorized to do such a thing.
– However, the owner of that company has failed to meet the investment obligations with the Government as provided by the contract.
– We concluded the final sale transaction of “Nairit” just two days ago.
– Maybe this is true, but pursuant to the agreement the owner had to invest $60mln by the end of the year.
– It will start producing butadiene in 2008, but the problem is that we concluded the procedure of delivery and acceptance just one month ago. This is not a car sale, where one can just pay for it and drive it off.
– Are you disappointed about the existing situation in “Nairit”?
– I am satisfied with the fact that they don’t have any salary debts, there is production, and they have increased wages by 25%.
– Increasing salaries is not investment; it had to be increased based on its incomes.
– Yes, increasing salaries is not an investment obligation, but they promised to hire 300-400 employees, who had to be trained to work for the butadiene production line.
– Are you also satisfied with the fact that $30mln out of the $70mln borrowed from the CIS intergovernmental bank did not even reach Armenia?
– Who took that credit?
-The owner of “Nairit” company, i.e. “Rainovil Property Limited” company.
– Rainovil is not only the owner of “Nairit”. It has thousands of businesses in Moscow, constructs buildings, and it is only up to them how to deal with their money.
– Do you mean that the owner of this factory can receive credit and use it for the purpose of doing business in Moscow and put that money into circulation for his own purposes instead of investing it in “Nairit” directly?
– It is their problem, and it is up to them what to do with their money. Our problem is not to allow the factory to be encumbered. For instance, if you own a car, you can mortgage or pawn it and buy something else for that money. Does the law prohibit it?
– Mr. Minister, “Nairit” is not a car, but a strategic factory and a source of huge income for everyone. Besides that, the government has sold it under certain preconditions, and it is not Rainovil’s established property. Please note that if Rainovil fails to make that investment on time, the government may take the plant back without any partial reimbursement of the investments made.
– Who told you about 70 million, 30 million? These are the rumors spread by newspapers.
– The information concerning the $70 million is open to everyone, and you can see it in the annual report of the CIS intergovernmental bank.
– How can I know that? Please bring that balance and show it to me too.
– Mr. Movsisyan, you are representing the interests of the state-owned shares in “Nairit” (10%). If the borrowed 30 million has disappeared, you should take the necessary steps as soon as 2008, including looking into the company’s other accrued debts. If the company does not have any debts against it for the natural gas it uses, it has huge debts against the credit borrowings. By the way, those current expenses are covered by those credit sums, but not by the income of the company.
– It is the owner’s problem; our problem is “Nairit”. How can you know how much they have invested? Besides that, we need time to speak about it; it is a long story.
P.S. “168 Zham” will be back from vacation on August 13. Upon getting back to work, we will apply to the minister again to continue with the long story.