🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

More protests against Russian oligarch Deripaska

Published 06/08/2009, 10:19 AM
Updated 06/08/2009, 10:26 AM
TTEF
-

* 2nd demo in a week at plants owned by Oleg Deripaska

* Factory management promises to pay frustrated workers

MOSCOW, June 8 (Reuters) - Workers at a paper mill in Siberia owned by businessman Oleg Deripaska protested over unpaid wages on Monday, media reported, less than a week after Prime Minister Vladimir Putin rebuked him in a similar dispute.

Reports said 63 people had started hunger strikes and two dozen others were demonstrating against the management of the Soviet-era paper mill on the banks of Lake Baikal, the world's largest freshwater lake.

The demonstrators were considering blocking a highway if their demands were not met -- a tactic used by the protesters last week before Putin intervened.

Last week on national television, Putin humiliated Deripaska by treating him as an errant schoolboy and likened him and other factory owners to "cockroaches". He then forced him to sign a contract restarting supplies to idle factories in the town of Pikalyovo, 270 km (168 miles) from St Petersburg.

Deripaska's investment vehicle Basic Element owns 51 percent of the Soviet-era paper mill by Lake Baikal which was mothballed during the last quarter of 2008.

Oksana Gorlova, spokeswoman for Basic Element's timber arm Continental Management, which manages Baikal paper and pulp mill, said the company had transferred 87.6 million roubles ($2.8 million) on Monday to pay all wage arrears accumulated since February, when the factory had been due to reopen.

She blamed the plants's closure on a court decision last year, supported by ecologists, which banned the mill from disposing of waste water into the lake.

"No one was thinking about people when the decision was taken that forced us to mothball the plant," she said.

The mill employs 2,000 people and is the main employer in Baikalsk, which has a total population of 17,000.

Ecologists have said that although they wanted the plant to stop pumping waste into the lake, they also advocated turning the factory into a more environmentally friendly business.

The global economic crisis has hit Russia hard, forcing unemployment to jump to around 7.7 million. Putin and President Dmitry Medvedev have said oligarchs are not helping ordinary people enough.

A tough line on oligarchs may help the Kremlin win additional support from ordinary Russians, traditionally critical of the super-wealthy businessmen.

Forbes magazine last year estimated Deripaska's wealth at $28 billion. Once Russia's richest man, he has lost most of his fortune in the crisis and is trying to restructure billions of dollars of loans owed by his flagship company UC Rusal. (Reporting by James Kilner and Dima Zhdannikov, editing by Mark Trevelyan)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.