Niksic, (Montena-business)- The representatives of the #Zeljezara# and of the Russian company RusMont Steel Corporation signed the contract on lease of part of the company yesterday, reported director of #Zeljezara# Miodrag Pejovic after a meeting of the Company#s Board. Pejovic said that it would be decided if the contract was going to be accepted at the Company#s next Board meeting, probably in two weeks. "The agreement with the Russian company was done after four long negotiation periods. Our position was difficult also because of limited sales of our products" said Pejovic. "It was caused also by bad position of steel companies from Serbia" added Pejovic. Machines for production are in a very bad shape, because all of them are older than 23 years, and in the last 10 years, no investments were made except some small reconstructions. "Our machines are also in bad economic position, and that#s the reason of our products# unsuccessful participation at the international market" claims Pejovic. According to Pejovic, the #Zeljezara# management determined very strict conditions of the tender for Zeljezara lease, despite the company#s bad situation. "Our main aim is to protect all our workers, who have solid payments, and to start production, to make a sales plan, modernize equipment and provide financial support for the reconstruction of machines" said Pejovic. As Pejovic said, the Russians demanded secret pay agreements for managers, which was not agreed. "It is not acceptable because we don#t want to separate the management from the rest of the company" said Pejovic. Pejovic said that the Russian partner had approached negotiations very ambitiously, and studied the company#s situation very seriously. rm/bd