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Kiev accuses ex-owners of Zaporizhia production complex of sabotage

In June, 2015 the Supreme Court of Ukraine decided to return 63% of the company’s shares (earlier owned by Russian businessmen) to state property
A worker at a plant in Zaporizhia (archive) ITAR-TASS/Anatoly Strunin
A worker at a plant in Zaporizhia (archive)
© ITAR-TASS/Anatoly Strunin

KIEV, July 21. /TASS/. The Security Service of Ukraine accused ex-owners of the Zaporizhia production complex of deliberate sabotage of its production potential. According to the service’s website, a criminal case under the article "sabotage" was opened. The search for accessory to "demolition of a strategic object of Ukrainian production sector" is in progress.

In June, 2015 the Supreme Court of Ukraine decided to return 63% of the company’s shares (earlier owned by Russian businessmen) to state property.

At the same time, during the legal proceedings, according to the Security Service of Ukraine, "Russian owners began dismantling the elements of production equipment." As a result from December, 2014 through June, 2015 assets for more than 100 mln hryvnya ($4.5 mln) were taken out of the country. The last attempt to dismantle the equipment, according to the Security Service of Ukraine, was prevented after the decision of the Supreme Court.

At the same time, the Service does not point out any specific names.

The company Rusal told TASS that manufacturing activity at the production complex was gradually shut down in 2009 - 2014 due to high electricity tariffs and outdated equipment. The total amount of losses incurred over the years amounted to more than 4 bln hryvnya ($181.17 mln). Thus, the company sells non-liquid assets, stored in its warehouses to partially offset operating costs, including paying for energy sources and taxes (Zaporizhia production complex remained the largest taxpayer in the region), wages, security, etc.

"The case against the Zaporizhia production complex was initiated with severe impairments due to the fact that the plant is excluded from the list of strategic enterprises, the said article cannot be applied to it," the company said.

Zaporizhia production complex is the only producer of primary aluminum, alimuna-based master alloys and a variety of other strategically important materials in Ukraine.