Azerbaijan , Baku /corr Trend S.Babayva, I.Khalilova / The Cabinet of Ministers plans to hold a meeting on 13 March under the chairmanship of Prime Minister Artur Rasizade, dedicated to terminating all activities of enterprises belonging to the State chemical company Azerikimya.
The Government explained with the non-profitability of production of chemical products after increase of prices of energy resources and oil products.
Prices were increased at the resolution of the Tariff Council of Azerbaijan, dated 8 January 2007. At the present time the Government is investigating opportunities to resolve the problem. The Finance Ministry does not support the idea to continue indirect subsidizing for the purchases of Naphta and natural gas by Azerikimya at privileged prices.
In 2005 Azerikimya received a grant from the public budget and in the subsequent years the Government refused to grant indirect subsidizing
Azerikimya reported on 12 March that the activities of the enterprises relating to the company have been terminated.
The energy supply to the chemical enterprise was stopped due to payment problems of energy consumption charges which paralyzed the activities of the chemical enterprises," the same source added. Furthermore, the Taxes Ministry imposed a hold on banking accounts of the State Company due to non-payment of taxes.
'Talks are being carried out with the Government to find an outlet from the situation. At the present time repair and reconstruction work is being carried out on the enterprises that do not have the finances," Azerikimya said.