Commission urges probe of Noril’sk sale

A government commission in Russia has called for a halt to the privatization the Noril’sk Mining and Metallurgical Kombinat.

The commission has recommended that the recent sale of the government’s remaining 38% interest in the firm to Unexim Bank be declared void and that the shares be returned to the government. It has also declared that state investigators launch a probe into the legality of the sale.

The commission has not made known its reasons for calling for a halt to the sale. The proposal to investigate the sale must pass through the Duma, Russia’s lower parliament, for approval.

Noril’sk officials say a court ruling against the sale could stymie plans to raise capital for plant and mine upgrades. For the time being, the company intends to maintain its current production rate. Production of platinum group metals was up 7% in the first 11 months of 1997.

— With files from Interfax News Agency.