Following a request by the non-recognized republics to re-register legal entities in the so-called “DNR” and “LNR”, Metinvest declares a complete loss of control over the operations of all assets on the temporarily non-controlled territory (NCT).
Unidentified people arrived at the group’s enterprises and demanded that the assets be re-registered under the jurisdiction of the non-recognized republics and started an inventory process. Employees were physically threatened in case of defiance. As Metinvest cannot place its employees at risk, and violate the laws of Ukraine, the group considers it impossible to continue any economic operations at these enterprises. This statement relates to the operations of Yenakievo Iron and Steel Works, (including its Makeevka branch, PJSC Makeevka Iron and Steel Works), Yenakievo Coke Plant, Khartsyzsk Pipe Works, Komsomolske Flux, Krasnodonugol, Donetsk Coke and the Ukrainian-Swiss joint venture Metalen Limited Liability Company.
Commenting on the developments, Yuriy Ryzhenkov, the group’s Chief Executive Officer, said: “The decision to cease operations at our enterprises on the territories of the so-called “DNR” and “LNR” is a forced move, caused by our absolute disagreement with the demand to change Ukrainian jurisdiction. Moreover, in this situation, we are unable to control the activity of the enterprises, and, correspondingly, bear responsibility for developments on their territories.”
At the very beginning of the conflict in the Donbass region, Metinvest’s enterprises in the NCT were re-registered on the territory controlled by Ukraine. In 2016 alone, they transferred around UAH 1.4 billion to budgets on various levels in the country. They employed over 20,000 people. Employees affected will be offered positions at Metinvest’s enterprises on the territory controlled by Ukraine – Zaporizhya, Kriviy Rih and Mariupol – and labor relations will be settled in accordance with Ukrainian legislation throughout.
The group will apply to the Ukrainian state authorities and international organizations for protection of its rights in this matter. (SCM/Ukrainian metal)
