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CROATIA REJECTS RUSSIAN COMPANY'S OFFER FOR CONSENSUAL TERMINATION OF IRONWORKS PURCHASE CONTRACT

Izvor: HINA
SISAK-IRONWORKSCROATIA REJECTS RUSSIAN COMPANY'S OFFER FOR CONSENSUAL TERMINATION OF IRONWORKS PURCHASE CONTRACTSISAK, Sept 13 (Hina) - The Croatian side has rejected Russian companyMechel's offer for a consensual termination of the purchase contractfor the ironworks in Sisak, the chairman of the government Office forSocial Partnership, Vitomir Begovic, said on Monday, adding thatpapers for the termination of the contract were being drawn up andmight be signed tomorrow.
SISAK, Sept 13 (Hina) - The Croatian side has rejected Russian company Mechel's offer for a consensual termination of the purchase contract for the ironworks in Sisak, the chairman of the government Office for Social Partnership, Vitomir Begovic, said on Monday, adding that papers for the termination of the contract were being drawn up and might be signed tomorrow.

Begovic said Mechel would secure EUR1.1 million for salaries for August and leave EUR1.5 million in equipment for the new partner in the ironworks. He added Mechel also agreed to activate a EUR3.6 million bank guarantee for the payment of six minimum monthly salaries.

Begovic said the Croatian side could not agree to a consensual termination of the purchase contract because the Russian company refused to pay liquidation costs and severance for surplus employees.

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