  For each $A\in\N^n$ we define a Schubert variety $\sh_A$ as a closure of the
$\Slt(\C[t])$-orbit in the projectivization of the fusion product $M^A$. We
clarify the connection of the geometry of the Schubert varieties with an
algebraic structure of $M^A$ as $\slt\otimes\C[t]$ modules. In the case when
all the entries of $A$ are different $\sh_A$ is smooth projective algebraic
variety. We study its geometric properties: the Lie algebra of the vector
fields, the coordinate ring, the cohomologies of the line bundles. We also
prove, that the fusion products can be realized as the dual spaces of the
sections of these bundles.
