Bulgaria Steel Workers Rally over Payments, Sale Talks Stalemate

Workers at Bulgaria's indebted steelmaker Kremikovtzi chanted "Resignation" and carried posters, reading "Brussles! Mafia governs here! Stop it!" Photo by BGNES

Workers at Bulgaria's indebted steelmaker Kremikovtzi hit the streets once again on Monday over unpaid salaries and the lack of an investor in the ailing plant, piling pressure on the coalition ahead of the summer elections.

The rally hampered the traffic in downtown Sofia on Monday morning, bringing it to a halt near the Saint Alexander Nevsky Cathedral, Rakovski Street and Tsar Osvoboditel boulevard. Police presence has been beefed up around the nearby building of the Economy and Energy Ministry, where the protesters will hand a declaration with their demands.

Trade unions say that the closure of the indebted plant will not be averted should the government fail to find a buyer by the end of March.

Bulgaria's economy and energy minister recently admitted talks over the purchase of the insolvent steel mill have been bogged down, blaming it on low prices on foreign markets.

Brazilian steel maker CSN remained the only main bidder for the plant, but no progress in talks has been reported so far.

The ministry has conducted only general talks with the Russian company Finprominvest, which made public its interest in Kremikovtzi last week, shortly after the Ukrainian Smart Group withdrew from buying or running the Bulgarian steel factory.

Bulgarian court declared Kremikovtzi insolvent in August last year. In October the smelter shut down some of its furnaces due to lack of raw materials after Ukrainian tycoon Konstyantin Zhevago cancelled a deal with the plant.

The government holds 25.3% of Kremikovtzi and its seal of approval is crucial for inking a sale deal.

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