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. Last Updated: 07/27/2016

Ukraine Aluminum Plant Stake Up for Grabs

Ukraine’s state auction committee won’t reveal until Wednesday which companies can participate in a tender for 68 percent of Ukraine’s Zaparozhsky Aluminum plant, or ZALK, but two of the three known contenders have Russian roots.

Favorites for the stake in ZALK, which produces 100,000 tons of primary aluminum a year, are Ukrainsky Aluminum — a subsidiary of metals giant Siberian Aluminum — and AvtoVAZ-Invest, founded by Moscow’s Arlan holding, which includes Russia’s leading carmaker, AvtoVAZ.

ZALK currently provides AvtoVAZ with about 35,000 tons of aluminum products a year, or about 30 percent of the factory’s total output — almost all of its exports to Russia.

"It’s important for us to have aluminum production in our production cycle; it’s a tendency that’s appearing globally in the aluminum industry," Reuters reported AvtoVAZ board member Vladimir Kadannikov as saying Monday.

Vneshekonombank has agreed to bankroll AvtoVAZ-Invest’s bid and subsequent investment program. Vneshekonombank spokesperson Tatyana Golodets wouldn’t pin down a figure, but put the amount under consideration at "tens of millions of dollars," Vedomosti reported Monday.

AvtoVAZ has said it is prepared to spend $380 million on ZALK products over the coming five years.

The third hopeful is Ukraine’s Metallurgia consortium, Vedomosti reported Ukraine’s Property Fund spokesman as saying.