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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Seven Years of War in the Aluminum Domain

13 November, 2012 - 00:00

The Chairman of the CIS Coordination Committee Boris Beresovsky introduced Oleh Deripaska, head of Russia's Sibalko industrial group, to Ukrainian President Leonid Kuchma. Deripaska will be authorized to promote Russian interests in Ukraine. The Sibalko Consortium unites aluminum producers from Krasnoyarsk and Bratsk, with a total annual production volume of about 1.5 million tons, out of the approximately 6 million tons made annually worldwide. Director general of Mykolaiv Aluminum Plant Vitaly Meshyn issued this data two weeks ago at a meeting with journalists in Kyiv. He said, "Deripaska reported that Sibalko would like to buy 56% of the plant stock for $60 million. We do not need that kind of strategic investor. Previous experience shows they intend to get maximum profit out of the enterprise within 5-10 years and do not care much for the enterprise's development."

According to Meshyn, behind Sibalko is not only Berezovsky but also the international Transworld Group. Last year this corporation had a turnover of $6 billion.

By taking over the aluminum plant, the investors would form closed production cycle from raw materials to metal trading on the market. This situation gives additional freedom for the games, which have led the price of aluminum to fall from $1700 to $1250 per ton, which naturally influenced the price of the aluminum, manufactured in Mykolaiv. According to Meshyn, dependence on Russian consumers has cost the plant $9 million in damages. According to him, the Ukrainian authorities are ready to lobby Russian interests instead of protecting the national interests of Ukraine. Meshyn also said former Prime Minister Pavlo Lazarenko had even asked him to leave the office, where negotiations with Russian representatives were being held.

The parliamentary commission chaired by Militia General Valentyn Nedryhailo acted accordingly. According to Meshyn, the general even refused to eat at the same table with the plant director. Nevertheless, they managed to find a solution.

The seven years of war for the plant, which started when the plant was offered for lease, can easily be explained. Last year the enterprise had $30 million of profit after taxes and a turnover of over $200 million.

"We need an investor for further development," says Meshyn. "Bank loan schemes are acceptable. If we broaden our infrastructure in the port, we could be able to break loose from Russia."

Photo:

Vitaly Meshyn

 

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