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MECHEL IRONWORKS PRESENTS ITS CONDITIONS FOR CONTRACT TERMINATION

ZAGREB, Sept 10 (Hina) - Representatives of the Russian "Mechel"company, which owns the Sisak Ironworks, and the Croatian EconomyMinistry, on Friday failed to reach agreement on conditions underwhich the Russian company is to withdraw from the Sisak Ironworks. TheMinistry will present its position on the conditions submitted todayby Mechel on Monday.
ZAGREB, Sept 10 (Hina) - Representatives of the Russian "Mechel" company, which owns the Sisak Ironworks, and the Croatian Economy Ministry, on Friday failed to reach agreement on conditions under which the Russian company is to withdraw from the Sisak Ironworks. The Ministry will present its position on the conditions submitted today by Mechel on Monday.

At today's two-hour meeting, which was also attended by representatives of trade unions and the government's Social Partnership Office, representatives of the Russian company submitted a draft document on the termination of the contract, not agreeing to pay a sum of 5.4 million euros.

Economy Minister Branko Vukelic said that the government sought the activating of bank guarantees totalling 3.6 million euros for workers' wages for a period of 3.5 months, 1.1 million kuna for the August wages, 1.5 million euros for reserve parts, and 5.4 million euros to provide for surplus labour, Vukelic said.

All conditions were accepted apart from the request for 5.4 million euros.

Lawyers will consider Mechel's offer and ways to terminate the contract, Vukelic said.

Mechel Ironworks director Nasibulla Mukhatdinov said that in case the contract was terminated Mechel Ironworks would pay all of its obligations, that it did not owe anything to its suppliers since 1 September, and that domestic customers owed the company 3.5 million kuna.

Mechel Ironworks wants to terminate the contract respecting all of its terms as well as Croatian legislation, and will pay workers' wages for August, Mukhatdinov said.

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