VEB wants to bankrupt Ammoni

VEB (former Vnesheconombank) intends to file a bankruptcy petition to the Arbitration Court of Tatarstan against the Ammoni plant (the city of Mendeleevsk).

The Ammoni plant was launched in 2015. The total cost of the project, as of 2016, amounted to $2.15 billion, the major part of which – $1.8 billion – was provided by VEB in the form of a loan. Due to the devaluation of the Russian ruble and lower prices for nitrogen fertilizers relative to the parameters laid down in the project, the plant is operating at a loss and cannot service the debt.

In spring 2019, VEB, the largest lender and owner of 22.8% of the company’s shares, initiated the process of attracting investors to Ammoni. Gazprombank was the organizer of the selection, and SDS Azot together with Lukoil were shortlisted to the final stage.

It was finally reported that VEB would transfer the right to receive payment of the Ammoni’s debt (assignment) to the Kemerovo Azot (part of SDS Azot) for $900 million.