NIIK may go bankrupt due to the Metafrax project
Research and Design Institute for Urea and Organic Synthesis Products (NIIK, the city of Dzerzhinsk, the region of Nizhny Novgorod) may go bankrupt due to a court case started in December 2021.
In recent months, NIIK received several claims to recover debts for various amounts. Besides, NIIK is suing Metafrax Chemicals (hereinafter, Metafrax) and Sberbank to invalidate claims of Metafrax on the payment of bank guarantees of 745 million rubles (almost $10 million).
These guarantees are related to the obligations of NIIK for the design and construction of the Ammonia-Carbamide-Melamine complex at Metafrax. The contract was concluded in 2017, however, in 2021 it was terminated and NIIK has appeared at a loss.