Proprietor of Kluychevsk ferroalloy works S. Gilvarg is going to sign the agreement of lawsuit with Danko Konchar of Croatia who is the 50% shareholder of Russian Chrome CJSC.

The conflict was kindled in 2005 when Mr Gilvarg accused Mr Konchar of not meeting the contract liabilities in regard of selling his 50% share of Russian Chrome (the other shares belonged to Stoppani of Italy). The issue was crucial as the three-year agreement signed in the spring of 2005 states that Russian Chrome should deliver 400 tons of chrome oxide to the ferroalloy works monthly.

Mr Gilvarg took legal action demanding to classify the chrome company’s raising oxide prices as unlawful (the increase comprised 70% in a year). The sitting was to take place on March 3, 2006. Mr Kochar, in his turn, claimed that the works had never delivered 1.5 tons of goods made on commission and had not paid for the chrome in full. He laid a counter-claim, assessing his damage as 4.5 million RUR. The sitting has been scheduled for March 22, 2006.

On February 26, the spokesperson for Russian Chrome reported the parties were going to sign the agreements of lawsuit on both claims, the spokesperson for Mr Gilvarg confirmed the news.