Ukraine’ Parliament members are mulling a review for privatization of large state enterprises, including state iron ore holding, Ukrrudprom. The head of the privatization committee at the Parliament Boris Filatov claims there have been certain law violations during the privatization process (in 2004-2005). The General Prosecutor’s office has initiated a case regarding privatization of Ukrrudprom in 2004, according to Filatov.
Among the main assets of Ukrrudprom before the privatization are three iron ore mining subsidiaries of Metinvest: 50%+1 share interests of Northern Mining and Processing Works (SevGOK) and Central Mining and Processing Works (CGOK) each, and 37.6% interest of Ingulets Mining and Processing Works (IGOK).
The General Prosecutor’s office is yet to confirm the opening of the case regarding the privatization of Ukrrudprom. Nationalization risks regarding key Metinvest iron mining subsidiaries (which regenerated 65% of the company’s EBITDA in 2014) cannot be excluded in general, but there is still a long way to go, before this reprivatization could be implemented, if ever. Firstly, there is still a lack of political will to pursue the large scale review of the privatization in Ukraine, which could trigger an undermining of the local political environment. Secondly, subsidiaries of Ukrrudprom have been sold according to a special law approved by Ukraine’s parliament. So, from a legal standpoint, the potential court hearings could last for an extended period of time, before any material decision could be brought to force. (https://concorde.ua/en/research/daily/ukraine-mps-mull-revision-of-privatization-iron-ore-mines-13994/Ukrainian metal)