Rusal Replaces Armenal CEO Amid Ongoing Sale Negotiations

Russian company Rusal has replaced Arthur Zakaryan as CEO of its Armenian subsidiary, Armenal foil rolling plant, with Maxim Karamanov from Russia, despite ongoing negotiations for the plant's sale. The change in leadership comes as the Tashir group of companies, owned by Samvel Karapetyan, considers acquiring Armenal, which has been operating at a loss due to Western sanctions against Rusal.

Reports of these negotiations surfaced in the media, but neither Armenia's Minister of Economy, Gevorg Papoyan, nor Tashir representatives have commented. Papoyan, summarizing his first 100 days in office, acknowledged the plant's production challenges and market difficulties caused by sanctions. He emphasized ongoing business negotiations, stressing the importance of maintaining Armenal's industrial capacity.

Observers suggest that the leadership change is unlikely to improve Armenal's financial situation given the impact of sanctions. Instead, the new management from Moscow may be preparing the plant for sale.

According to Armenia's Statistics Committee, aluminum foil production at Armenal fell by 32% to 8,271.1 thousand tons from January to May 2024, accelerating from a previous decline of 9.3%.