Alumina and its 1,500 workers are paying for the RS authorities' mistakes

Zvornik's Alumina is most likely heading for bankruptcy. The legal team of this industrial giant sees it as the only solution to avoid the permanent consequences of account blockage due to court decisions imposing debt on Firma Birač, which has a stake in Alumina. The Foča-based company Pavgord had previously entered into a pledge agreement with UKIO bank for the purchase of its claims, and according to the latest ruling by the District Court in Bijeljina, Alumina is supposed to pay Pavgord 243 million marks.

"Alumina" did not receive any benefit from this monetary amount, nor did it ever receive any monetary amount based on the disputed debt, but regardless of this, as well as a number of other arguments, local courts have made an illegal and unfounded execution decision, which could lead to the permanent insolvency of the factory, it was announced yesterday from the company.

In order to preserve the factory's operations and jobs, the factory's Supervisory Board accepted the submitted proposals and submitted a proposal for bankruptcy proceedings to the competent court.

"The difficult decision made by the management at this moment represents the key to the survival of the factory as we know it," the statement said.

The hope for Alumina lies with the RS authorities, who largely contributed to the entry of the UKIO group into the economic sphere of this entity. The BiH Presidency member Milorad Dodik had excellent relations with Vladimir Romanov, the owner of the UKIO group, which in turn owned the Birač Alumina Factory and Balkan Investment Bank, for years. By saving Alumina, Dodik would be saving himself from uncomfortable questions, including the UKIO group's investment in IGOKEA, or the way his son obtained a loan.

Alumina employs almost 1,500 workers and expects revenue of around 300 million KM this year.