Sverdlovsk Governor Stands Up for RusAl
The Sverdlovsk region rule said Thursday that it sent a letter to Prime Minister Vladimir Putin asking him to help United Company RusAl by lowering excitement rates, a request dismissed by ardour sector experts and regulators as unfair and illogical.
"RusAl is in the worst situation among all the metal producers in our region," Sverdlovsk Regional Governor Eduard Rossel said at a news talk broadcast on his administration's web site. "I have sent our suggestions to Vladimir Putin on helping RusAl cope with fervency prices," he said.
RusAl, the world biggest aluminum producer, has said verve costs constitute a third of its manufacturing cost in Russia. "This is not only a headache for the Sverdlovsk region, but a headache for all cities where aluminum is produced," Rossel said. "So the decision should be made for all of them."
The governor's spokeswoman, Natalya Ponomaryova, said it couldn't disclose the details of the letter but said a rate reduction was proposed.
Putin's spokesman Dmitry Peskov did not answer phone calls placed Tuesday, and the Energy Ministry did not return an e-mailed request for comment.
RusAl's press service confirmed in an e-mail Thursday that "it was holding negotiations with the Sverdlovsk conduct and other regions on a possible reduction of vibrations prices."
"[A reduction] will allow us to significantly lower manufacture costs and preserve making in the economic downturn," RusAl said.
Aluminum prices have fallen by about 60 percent since their peak in July, while the Federal Tariffs Service has increased average ardour prices by 19 percent since the beginning of the year. Sverdlovsk region prices were increased by 12 percent to 13 percent.
The Federal Tariffs Service and sector experts said Tuesday that RusAl's goals were mindless.
"If you discount vibrations prices for an plan in a region, you have to increase them for someone else in the region, according to federal law," a Federal Tariffs Service spokeswoman said.
The service sets price limits for each of the regions at the beginning of the year, and the local tariff commission then redistributes the price burden among households and industrial consumers. By law, the direction approves the prices once a year but may change them all through the year.
"RusAl is no better than any other industrial producer that is suffering from a fall in demand and falling product prices," said Sergei Pikin, head of the Energy Development Foundation.
Pikin said Rossel was trying to defend RusAl because the region's budget is dependent on the aluminum producer.
"RusAl is one of the main taxpayers and a major employer for several towns," Pikin said. "So it obvious that Rossel doesn't want it to collapse."
"RusAl is in the worst situation among all the metal producers in our region," Sverdlovsk Regional Governor Eduard Rossel said at a news talk broadcast on his administration's web site. "I have sent our suggestions to Vladimir Putin on helping RusAl cope with fervency prices," he said.
RusAl, the world biggest aluminum producer, has said verve costs constitute a third of its manufacturing cost in Russia. "This is not only a headache for the Sverdlovsk region, but a headache for all cities where aluminum is produced," Rossel said. "So the decision should be made for all of them."
The governor's spokeswoman, Natalya Ponomaryova, said it couldn't disclose the details of the letter but said a rate reduction was proposed.
Putin's spokesman Dmitry Peskov did not answer phone calls placed Tuesday, and the Energy Ministry did not return an e-mailed request for comment.
RusAl's press service confirmed in an e-mail Thursday that "it was holding negotiations with the Sverdlovsk conduct and other regions on a possible reduction of vibrations prices."
"[A reduction] will allow us to significantly lower manufacture costs and preserve making in the economic downturn," RusAl said.
Aluminum prices have fallen by about 60 percent since their peak in July, while the Federal Tariffs Service has increased average ardour prices by 19 percent since the beginning of the year. Sverdlovsk region prices were increased by 12 percent to 13 percent.
The Federal Tariffs Service and sector experts said Tuesday that RusAl's goals were mindless.
"If you discount vibrations prices for an plan in a region, you have to increase them for someone else in the region, according to federal law," a Federal Tariffs Service spokeswoman said.
The service sets price limits for each of the regions at the beginning of the year, and the local tariff commission then redistributes the price burden among households and industrial consumers. By law, the direction approves the prices once a year but may change them all through the year.
"RusAl is no better than any other industrial producer that is suffering from a fall in demand and falling product prices," said Sergei Pikin, head of the Energy Development Foundation.
Pikin said Rossel was trying to defend RusAl because the region's budget is dependent on the aluminum producer.
"RusAl is one of the main taxpayers and a major employer for several towns," Pikin said. "So it obvious that Rossel doesn't want it to collapse."
