Russia forfeited $2bn Ajaokuta steel renovation contract over war with Ukraine — Adegbite

The conflict between Russia and Ukraine has lost Ukraine a $2 billion agreement to repair the faltering Ajaokuta steel mill in Nigeria’s Kogi State.
President Muhammadu Buhari had approved the flow of cash to the Russian corporation since 2020, according to the Minister of Mines and Steel Development, Olamilekan Adegbite, but the contract was disrupted when the conflict broke out when they were about to mobilize to the site.

Currently, the Federal government has obtained a new commitment from a British company to help resuscitate the faltering Ajaokuta Steel Company Limited at no additional expense to the government.

Adegbite used the weekly briefings organized by the Presidential Media team to update the public on the project’s progress.

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“In October 2019, Nigerian President Muhammadu Buhari and Russian President Vladimir Putin met in Sochi for the Russia-Africa Summit and decided to restart the unfinished Ajaokuta steel factory,” the Minister added.

He also mentioned that the project’s launch was delayed because to limits imposed by the worldwide epidemic of COVID-19.

Adegbite, on the other hand, was sparing with the name of the British business that would now undertake the project.

He went on to say that the deal with the Russian firm fell through because the contract was given to a company having both Russian and Ukrainian interests.

He revealed that the $2 billion is secure in a federal government account, adding that “the money hasn’t even been delivered to anyone, and the Russians can’t obtain any payment today with the way things are going in the globe.” All of their accounts have been disabled.

“So the $2 million is still with the federal government; the money was allocated for that reason by the President.” We had begun the acquisition procedure, but due to the conflict, we are no longer able to do so.

“By the grace of God, we have started an irreversible process,” the Minister said, adding that “a British business is willing to do it for us free immediately.” The issue with Ajaokuta is what we refer to as “force majeure.” Because the aim was to deliver Ajaokuta in 2022, no one thought of COVID.

However, the Minister expressed sadness that the steel firm may not be totally reformed as promised under the current administration.

“I’ve mentioned it before, when we returned from Russia, yeah, I went to the public and said, look, we’re going to deliver Ajaokuta before the conclusion of this tenure,” he remarked. And I hope that before I leave office, I will have the opportunity to apologize and explain what happened to the people.

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” It is not due to our fault. Everyone was ready to go, when COVID arrived unexpectedly. As a result, it is a case of force majeure.”