Russian oil and gas companies Rosneft and Itera are holding talks to invest in Nairit, the largest petrochemical plant in Armenia specializing in the production of chloroprene rubber.

Russian Vedomosti was informed about it by the representatives of Armenian Energy Ministry and the plant itself.

A source in Itera confirmed that the company is considering different options for participation in the project. The decision can be made until the end of May, the newspaper learnt.

In 1980s the plant was providing 10-12% of market share of chloroprene rubber, but presently is on the verge of bankruptcy with debts making $120-130 million.

The Armenian Energy Ministry has prepared its own investment program of reconstruction and development of the plant, ministry representative Lusine Harutyunyan said. She noted that the program was presented to Rosneft with an offer to cooperate.

The representative of Rosneft did not comment on the report, recalling that company’s President Igor Sechin and Vice-President of Itera Gagik Martirosyan visited Armenia in early April.

Complete renovation of the plant requires several hundred million dollars. If Rosneft and Itera agree to participate in the modernization of the Nairit plant, Armenia will get a loan of $400 million from the Eurasian Development Bank for debt refinancing and modernization, says one of the participants of talks.

In fact, Rosneft can take Nairit in lieu, chief editor of petrochemical portal Rupec.ru Andrei Kostin believes. According to him, Nairit is not a bad investment, taking into account development of chloroprene rubber market.