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Ukraine industrial group refuses to register firms in rebel-run areas
13:30, 2 March 2017
Ukraine industrial group refuses to register firms in rebel-run areas

SCM Group has no intention to pay taxes to separatists

13:30, 2 March 2017

Open source

Ukraine 's SCM Group, a financial and industrial group, the main employer in the eastern conflict zone, said it would fight separatists’ demand by to re-register firms on rebel-controlled territory. This was reported by Reuters.

Separatists have demanded Ukrainian companies in their territory register locally and pay them taxes in response to a rail blockade on goods from rebel territory that has highlighted the deep economic ties between the regions, despite three years of simmering military conflict.

"We consider private property to be sovereign and the demand to re-register our businesses and pay taxes to the self-proclaimed 'Donetsk and Luhansk People's Republics' is unacceptable," SCM Group said in a statement.

"No kind of pressure will force us to change the jurisdiction of our assets."

Related: Blockade participants open new post in Donbas near Marinka

SCM Group is owned by Ukraine's richest businessman, Rinat Akhmetov, and on Wednesday one of its telecoms firms and a humanitarian organization funded by Akhmetov said their businesses based in separatist-controlled Donetsk city had been seized by armed men.

Ukrainian President Petro Poroshenko condemned the separatists' move as illegal appropriation and said a recent flare-up in fighting showed that the crisis in the east was once again escalating.

Earlier it was reported that Akhmetov heads Focus’ richest Ukrainians rating. Not each member of the last year’s rating has got through the crisis.

Practically each member of the rating is forced to think about the war with the Russian Federation. In addition to the loss of assets in Crimea and Donbas, and Russian market foreclosure for Ukrainian goods in the last year, “transit” wars made exports to CIS countries more complicated.

Nonetheless, the list of the top four has remained unchanged: Rinat Akhmetov, Ihor Kolomoyskyi, Hennadii Boholiubov and Viktor Pinchuk. 

Related: Attack on blockade activists in Kryvy Torets, - video

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