Russian Aluminum Changes Content of Proposals on Construction of Aluminum Plant in Azerbaijan

Business Materials 6 February 2008 17:59 (UTC +04:00)

Azerbaijan, Baku, 6 February / corr. Trend A. Badalova/ Russia has totally changed its tactics and the content of the proposals on the construction of a new aluminum plant in Azerbaijan, Yuli Shedrin, the trade representative of Russian Federation to Azerbaijan said on 6 February. But he did not divulge the details of the talks.

"The works on the project are being carried out. There are good prospects for the construction," Shedrin said.

The talks between Russian Aluminum and Azerbaijani government on the construction of the aluminum plant were postponed for a time being, due to the reorganization of RusAl and its merger with SuAl.

The investments on the project are valued at $1 bln and 6,000 new jobs will be created as a result of the construction of the new aluminum plant.

The sides plan to coordinate the conditions of the participation in the plant, until the project is carried out. The estimations of the experts place the energy expenditures in the production cost of the aluminum at 75%; therefore the production of aluminum does not seem real without the establishment of the strong energy facilities.

Therefore, Russia has demanded to introduce the privileges for the energy resources, as the production of the aluminum is power-consuming.