SAPO wins dispute on renationalization of Firtash’s plant in Zaporizhzhya

Source : 112 Ukraine

The court sustained the case made by the SAPO against Tolexis Trading Ltd, an offshore company controlled by Dmytro Firtash.
08:42, 12 July 2018

The Zaporizhzhya region business court has returned the assets of the Zaporizhzhya titanium-magnesium mill to state ownership. The press service of the Specialized Anti-Corruption Prosecutor’s Office of Ukraine (SAPO) has informed, reports.

By doing so, the court sustained in full the case made by the head of the Specialized Anti-Corruption Prosecutor’s Office against Tolexis Trading Ltd, an offshore company allegedly controlled by Dmytro Firtash.

Related: Wiretapping of Kholodnytsky: All you need to know about scandal around SAPO Head

In February 2013, while Viktor Yanukovich was still the sitting president of Ukraine, the State Property Fund of Ukraine entered into an agreement on the establishment of OOO Zaporizhzhya titanium-magnesium mill with Tolexis Trading Limited, which is part of DF Group.

The State Property Fund of Ukraine sent the entire real estate complex of the mill to the company’s chartered capital, as well as $110 million, which is supposed to be spent on modernization of manufacturing (the deadline for fulfilling these obligations is set for the first quarter of 2015).

Despite the fact that the majority stake (51%) in the venture had remained with the state, in fact, the mill was controlled by the new management, “which spent most of the investment on the previously created debt of the state-owned mill for energy resources and to creditors affiliated of DF Group”.

Related: Case of Firtash: Charges given to Ukrainian oligarch

“Later, these funds were removed from Ukraine through their transfer to accounts belonging to offshore companies. Only around UAH 20 million actually ended up being spent on modernization of production facilities, which was the primary goal for the creation of the venture with a non-state stake”, the message reads.

Due to the investors having not fulfilled their contractual obligations, the authority filed a lawsuit demanding a termination of the agreement and to return the mill to state ownership.

It was earlier reported that in 2015, the Cabinet of Ministers of Ukraine has transferred the management of the state share (51%) in the OOO Zaporizhzhya titanium-magnesium mill, to the state company “United mining and chemical company”.



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