Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Yeltsin Urged to Stop Norilsk Tender

London-based metals giant Trans-World Group has asked the Russian government to cancel next week's auction for 38 percent of Norilsk Nickel and create a new tender based on "openly accepted international terms."


In a letter to President Boris Yeltsin reprinted in a statement Friday, Trans-World said the "biggest mistake in the history of Russian industry is being made," as the country "is about to lose one of its most attractive industrial enterprises because of disadvantageous terms of the auction."


Trans-World alleged in its statement that under the current terms, Norilsk Nickel "will be predestined to end up in current management's hands at an enormously undervalued bid."


The Norilsk Nickel auction was announced July 4 and is expected to be conducted next week. The company is currently managed by the powerful Uneximbank, which became a majority owner under the 1995 loans-for-shares privatization program.


Trans-World called for a period of one year for the tender to be considered and the creation of a bid review committee of Russian and international experts.