Azernews.Az

A relevant decision was passed by the tender commission on October 16, SOCAR told AssA-Irada.
The open tender for Petkim shares was held early in July. SOCAR-TURCAS participated in it jointly with Saudi Injaz alliance. Also vying in the tender were major industrial groups set up by four Turkish financial institutions, as well as those of influential Israeli, Indian and Russian banks and companies. SOCAR came in second only to the Russian-Kazakh consortium TransCentralAsia Petrochemical Holding.
But the outcomes of the tender for the Petkim takeover came under scrutiny and caused public outcry in Turkey after it was ascertained that the group involves ethnic Jews and Armenians. Turkish media reported that Petkim had been purchased at an auction by a citizen of Kazakhstan, president of Euro-Asian Jewish Congress Alexander Mashkevich. The businessman, who controls 25% of the Central Asian state's economy, is listed in the Forbes magazine among the world's richest. Russian Troika bank, which provided financial aid for the purchase of Petkim, is owned by ethnic Armenian Ruben Vardanian. One of the financiers of the Armenia-2020 project, he is propagating investments in Armenian banks by Armenians living throughout the world.
Investments of SOCAR-TURCAS in the upgrade of Petkim's production capacities will boost the company's share in Turkey's market to 40% from the current 27%. SOCAR Vice President Davud Mammadov told a news briefing.
The alliance's investment could amount to $50-60 million in one or two years.
"The invested funds can be returned over five to six years - everything depends on the state of the market," Mammadov said.
He added that Turkey currently imports 70-75% of its chemical products, but SOCAR-TURCAS funds will allow to reduce the figure to 30%.
Petkim is one of the biggest petrochemical enterprises in the region with strategic importance for Turkey. The company, built by oil group TPAO in 1962, has been put up for privatization twice but has not changed hands yet. Petkim is referred to as "the heart of petrochemical industry" in Turkey. The group employs over 4,000 people. Despite its grandeur, however, the company is experiencing tough times. Due to the shortage of raw materials and financial constraints, Petkim has been unable to operate in full capacity for several years running. Nonetheless, it currently meets as much as 27% of Turkey's demand for petrochemical products.