Russian holding Basic Element plans to build a cement plant in Russia’s Ryazan Region jointly with Inteco company, Russian business daily Vedomosti said Friday, citing sources in both companies.  Inteco is controlled by Yelena Baturina, wife of Moscow’s mayor, Yury Luzhkov. 
 
Shareholders of the two companies have reached an agreement to invest in the project on a parity basis, a source familiar with Basic Element’s plans said. Meanwhile, according to Inteco’s top manager, the parties are still in negotiations and no formal agreements have been reached yet.  
 
During the first stage of production, the plant is expected to annually produce 1.5Mt of cement with a possibility of further expansion, a Basic Element official said. The total capacity of the plant may eventually reach 3Mt, he added. The company is currently holding a tender to choose an equipment supplier for the plant, the official said, adding that the results of the tender will be announced in July. 
 
Basic Element, or Base Element, is controlled by Russian billionaire businessman Oleg Deripaska. The company’s main asset is Russia’s largest aluminum producer RusAl. The company’s assets are estimated to be worth more than US$10bn.  
 
Inteko produces plastic goods and also operates in the construction and agricultural sectors. Baturina holds 99 per cent in the company, while ZAO Inteco has one per cent. Baturina is reportedly Russia’s richest woman with her fortune estimated at over $1.3bn.