Home > Latest News > Nairit Rubber: A Twisted Tale of Offshore and Russian Financial Dealings

Nairit Rubber: A Twisted Tale of Offshore and Russian Financial Dealings

January 14, 2013 Leave a comment Go to comments

15:50, January 14, 2013

How much money did Armenian and Russian government officials walk away with?

In August 2006, Rhinoville Property Limited purchased 90% of the stock in the Nairit Rubber Plant from HayGazArd for US $40 million.

The remaining 10% is owned by the Republic of Armenia; specifically the Ministry of Energy and Natural Resources.

However, Rhinoville never paid any of it’s cash for the purchase. In a financial sleight of hand, Rhinoville used the factory as collateral to obtain a $70 million loan from Interstate Bank. The company handed over controlling rights over Nairit to the bank stemming from the shares.

After receiving the $70 million loan, Rhinoville purchased Nairit for only $39 million. $1 million was registered as the plant’s annual deficit.

Armenian News

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