Russian Magnesium on the Brink of Bankruptcy

16 July 2012 (09:45)

Russian Magnesium (with plans to build a magnesium plant near Asbest, Sverdlovsk Region) is now on the verge of bankruptcy, Sverdlovsk Region Vice Premier Alexander Petrov said off the record in the course of exhibition and forum Innoprom 2012, Kommersant refers to Interfax-Ural as reporting.

‘The threat of bankruptcy does exist, and it’s quite real,’ Petrov said.

It was reported earlier that Sverdlovsk Region Arbitration Court decided in June that Uralgipromez’s claim regarding Russian Magnesium’s 51.8m RUR debt should be sustained. The magnesium plant under construction owed the plaintiff money for the project work done.

‘We are trying to control this claim and the sanctions against Russian Magnesium as best we can. If, however, these sanctions are imposed, the plant will go bust on this very day. For the time being, Uralgipromez is waiting for the situation to come to some sort of an ending,’ Petrov added.

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