Khimprom Volgograd faces insolvency suit over alleged debt

23 March 2009 15:31  [Source: ICIS news]

MOSCOW (ICIS news)--A Russian electricity supply company has filed an insolvency suit against the state-controlled Khimprom Volgograd chemical plant over the latter’s alleged unpaid bills, according to a statement from a local arbitration court released on Monday.

On 20 March, local power distribution company Volgogradenergo, at the request of electricity supplier Nizhnevatomenergosbyt, partially cut electricity supplies to Khimprom over outstanding bills that Nizhnevatomenergosbyt claimed amounted to roubles (Rb) 757m ($22.6m, €16.7m), according to the statement.

Based in the Volgograd region of southern Russia, Khimprom produces chlorine, caustic soda, polyvinyl chloride (PVC), crop protection and other chemicals.

Khimprom has faced financial problems in recent years. The Russian government, which has a 51% stake in the company, has been struggling to privatise Khimprom.

Khimprom’s plant produces 45% of Russia's total ethylene trichloride output, 50% of its chloroform, 70% of its methylene chloride, 60% of its calcium carbide and 12% of its caustic soda.

($1 = Rb33.50/€1 = Rb45.44)

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By: Sergei Blagov
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