The talks between Russkiy Aluminiy and the Government of Azerbaijan over the project on construction of the aluminum plant in Azerbaijan have been suspended. Yuriy Shedrin, the Head of the Trade Representation of Russia in Azerbaijan, informed that the pause was linked with the re-organization of RusAl and its merge with another company named SuAl, Trend reports. Presently, the replacement in the management of the Company is underway.
Management, which will supervise the cooperation in the southern direction, is interested in continuing its work with Azerbaijan and promote the project in construction of an aluminum plant, Mr. Shedrin said. Mr. Shedrin suggests that the investments in the construction of the plant will exceed $1bln. Prior to sanctioning the project the sides intend to agree upon the terms of participation. According to specialist calculations, the energy expenses comprise 75% of the direct price of production. Without establishment of necessary energy capacities the production of aluminum is unreal. Russia proposed to set some privileges for energy resources, he said. No agreement has been achieved on any of the agreement terms.