Russian oil major Rosneft agreed with Italian Pirelli to visit Armenia’s Nairit to assess possible lines of cooperation, Rosneft press service said.

At the meeing with Nairit director general Hovhannes Akhinyan, Rosneft President Igor Sechin discussed potential possibilities of Rosneft participation in production of chloroprene rubber at Nairit.

Rosneft will decide on participation in the project after an audit, as well as upon completion of talks with the Armenian government.

According to earlier reports, Rosneft and gas producer Itera were in talks with the Armenian government to make investments in the country’s largest petrochemical plant.

Armenian Minister of Energy and Natural Resources Armen Movsisyan repeatedly noted that $400-500mln is needed to upgrade Nairit plant.

Nairit specialises in the production of chloroprene rubber. In 2006, 90% of Nairit’s shares were sold to British Rainoville Property Limited for $40 million.

The remaining 10% belong to the Armenian government. According to some estimates, a comprehensive upgrading of this facility will require hundreds of millions of dollars.

Nairit has been operating at minimal capacity since a gas price hike in 2010 made production unprofitable.