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20 March 2015

Direct negotiations to sell part of Belarusian Grodno Azot stock

MINSK, 20 March (BelTA) – Part of the state-owned share in the Belarusian chemical company OAO Grodno Azot can be sold via direct negotiations, BelTA learned from Belneftekhim head Igor Lyashenko on 18 March.

According to the source, last year's tender to sell the state-owned share of the company's stock did not succeed. "If we see that any potential investor feels quite confident about obligations of the contract, the deal can be sealed via direct talks," noted the Belneftekhim head.

Terms of the sale were announced previously. The investor will have to sign an investment contract with the Belarus government on building a new nitrogen facility. The investor will have to finance the project till 31 December 2019 and use Grodno Azot's existing infrastructure to implement it. The project is supposed to result in the construction of an ammonia shop with the output capacity of 875,000 tonnes per annum, a carbamide shop with the output capacity of 1,190,000 tonnes per annum, a granulated carbamide shop, and the main hydrogen plant with the output capacity of 200 million m3 per annum.

Igor Lyashenko stated: "Unfortunately, there were no worthy investors but we are working on it. I think we will succeed". The investor is welcome to buy the shares at any stage of the construction of the new facilities, which the company is building.

No offers were submitted for the tender held in July 2014 to sell the state-owned shares of OAO Grodno Azot. Later on representatives of the Council of Ministers noted that communication with potential buyers of the state share would continue via direct negotiations. It was stressed that lowering the price was out of the question.

BelTA reported earlier that four Russian companies were interested in buying OAO Grodno Azot's package of shares, including Rosneft, Gazprom, and EuroChem. Earlier the starting price for the package of shares was set at $414 million. It was determined taking into account direct deliveries of natural gas from the main gas pipeline of OAO Gazprom Transgaz Belarus to OAO Grodno Azot.

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