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ECONOMY MINISTER CALLS ON UNIONS TO EXERT PRESSURE ON "MECHEL"

ZAGREB, March 1 (Hina) - Croatia's economy minister on Saturday called on trade unions to exert pressure on the Russian company Mechel and ask it to meet the required criteria so that a contract on the sale of the Sisak Ironworks may become effective.
ZAGREB, March 1 (Hina) - Croatia's economy minister on Saturday called on trade unions to exert pressure on the Russian company Mechel and ask it to meet the required criteria so that a contract on the sale of the Sisak Ironworks may become effective. #L# "As the preservation of jobs is the same goal which (the government) and the unions have, I call on the unions to exert pressure on the Russian side in order that it may fulfil the required conditions so that the sales contract can come into effect and the government pay overdue salaries to workers," Minister Ljubo Jurcic was quoted as saying in a statement released by his ministry on Saturday. The ministry added that it was expecting such pressure from the workers given that "they have put similar pressure on the government to accept talks and a contract, which was not acceptable at the start, with the Russian side." The ministry would like the sale of the Sisak Ironworks to succeed and that "Mechel" provide Zagreb with a proper bank guarantee for the purchase of the Sisak plant so that it might restart production as soon as possible and that workers might get salaries for January. The ministry asserted that the bank guarantee which the Russian side had provided was not payable in case of the termination of the contract. On Friday Jurcic briefed Russia's Ambassador to Zagreb, Eduard Leonidovich Kuzmin, on those problems. The co-ordinator of the bankruptcy proceedings in the Sisak Ironworks on Friday evening did not allow representatives of Mechel and its subsidiary Conares Balkan to enter the premises of this plant in Sisak (some 50 kilometres south-east of Zagreb), and thus made it impossible for workers and Conares Balkan to start production of steel in one of the factory's furnaces. In front of the main entrance to the ironworks' premises, the co-ordinator Blanka Anducic-Oresic handed over to the Conares Balkan director a written notice banning his entering the plant and on the restart of production, justifying this decision with the stand of the Croatian government and Minister Jurcic that the sales contract has not yet taken effect. She also cited a decision of the committee of the ironworks' creditors that no production should be initiated in the plant, due to the possibility of accumulating huge losses, as long as the process of bankruptcy was going on. (hina) ms

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