Donbass redistribution: how to change management at Ukrainian enterprises

Donbass redistribution: how to change management at Ukrainian enterprises


Akhmeta redistribution

The introduction of external management at the enterprises of the Ukrainian jurisdiction in the territory of the breakaway Donetsk and Lugansk national republics, began from midnight on 1 March. In DND it should be completed by the evening of the same day, according to the press service of the statement of the head of DNR Alexander Zakharchenko. According to him, under external control switched about 40 enterprises. Zakharchenko added that none of the Ukrainian owners were in touch with the DNR. That in enterprises will be introduced external control, Chapter DND and LNR Alexander Zakharchenko and Igor Carpenter stated on February 27. Its decision they explained by the fact that due to the imposition of the trade blockade on the part of Ukraine the work of enterprises was under threat.

Now clear the list of enterprises, which will be introduced external control, no, says a source in the Ministry of coal and energy DND. First, the authorities must find out which companies were previously paid taxes to the Ukraine, and some DNR. Those businesses that pay Ukraine will have to register in the DND and begin to pay taxes at the place of stay, he explains.

One of the main victims of the decisions of the authorities LC and DNR will be Ukrainian businessman Rinat Akhmetov. On March 1, stopped working the Donetsk office owned by Akhmetov telecommunication company “Ukrtelecom”. The company said that the work on the temporarily uncontrolled territories of Ukraine blocked “because of interference by unidentified individuals in the network and the seizure of the office by armed men”. “Terminated the provision of telephone services and access to the Internet for almost 200 thousand people,” — said in a statement. A source at one of the companies of Akhmetov noted that “it is very similar to the situation in Crimea: the case of “Ukrtelecom” on the Peninsula and also quickly blocked.”

The Agency “Interfax-Ukraine” citing a source in the company Lifecell (also included in Akhmetov owned SCM group provides mobile communications services) reported that the operator has ceased providing services to non-government-controlled territory on February 22 due to the blocking work.

Remains locked and the stadium “Donbass arena”, where 2014 is the Rinat Akhmetov Humanitarian centre. Recall, according to the sources , earlier the enterprise Foundation in 2014, according to unwritten agreements, the representatives of the breakaway republics were not touched.

In Lugansk people’s Republic the external management was to be introduced at three coal mines owned by Akhmetov: PJSC “Krasnodonugol”, LLC “DTEK Rovenkianthracite” and “DTEK Sverdlovantratsit”. Functions of temporary administration on the enterprises in the two breakaway republics will perform Donetsk JSC “Vneshtorgservis”.

The Director of “DTEK Sverdlovantratsit” Natalia Novoselova said that the company is functioning “normally” and that the decision of the authorities of the LC on the work of the company is not affected. “All at work. Personally for us, nothing happened,” — said Novoselov.

Rinat Akhmetov

Photo: Irina Alexandrov / RIA Novosti

Loss Akhmetov

Companies United in Akhmetov’s SCM group. According the official websites of the SCM and of the affiliated companies DTEK and Metinvest, in the territory of the breakaway DPR and LPR are 47 companies of the group. From the group “Metinvest” in the “risk group” consists of ten mining and metallurgical companies. The largest of them — Komsomolsky mine, Khartsyzsk pipe plant, Yenakiyevo steel plant (YeMZ). According to the report “Metinvest” for the year 2016, yenakiieve steel became the third plant of the group in terms of iron production (1.8 million tonnes) and steel (1.9 MT). DTEK is also a member of the SKM group may lose power plant, located on the territory of the breakaway republics, reported earlier .

Assessment source close to Metinvest, the mining and metallurgical holding companies in uncontrolled Ukraine territories brought him $1.5 billion annual export earnings. At the same time from their supplies depend on enterprises in Ukraine itself. Thus, termination of deliveries of coal PJSC “Krasnodonugol”, included in the “Metinvest”, will lead to lower coke production in coking plants of Ukraine by 1 million tons per year, and the cessation of supplies of flux with Komsomolskaya mine will suffer two large metallurgical plant of the holding in Mariupol and Zaporozhye. Due to the shutdown of factories Metinvest and businesses in the uncontrolled territory of Ukraine as a whole could lose $2.4 billion of foreign exchange earnings per year and up to 45 thousand jobs, leading the company’s estimates the source .

In addition, there is a risk of stopping Avdeevsky coke-chemical plant (AKHZ), “Metinvest” due to the termination of the power of Zuevskaya TPP. Avdiivka coke plant provided raw materials for the second largest steel holding company Mariupol metallurgical combine them. Ilyich. In case of stoppage due to shortage of raw materials, the export revenue will decrease by $2.4 billion.

Representatives of Metinvest and DTEK declined to comment.

Job prospects with Russia

Alexander Zakharchenko March 1, stated that the DNR this week plans to receive from Russia raw materials for Ukrainian enterprises in which the Republic’s authorities have imposed external controls: “Raw will receive from the Russian Federation. This process is spoken”. Earlier he said that the products of the company is planned to send to Russia.

Russian companies are not likely to buy raw materials from companies controlled by DND and LNR, the fear of sanctions, involves the group Director of corporate ratings Agency ACRES Maxim Hudalov. He drew attention to the fact that not all of the products generally in demand in Russia. So, the products of PJSC yenakiieve steel, given the cost growth in the supply of Russian raw materials, and will be more expensive than the Russian one, experts say. He believes that the steel plants in small batches through a fine traders will be exported via Russian ports on the traditional for Russia and Ukraine markets in Turkey and the Middle East.

As told by the trader on the coal market and a source close to one of the steel companies of the Russian NLMK had previously bought a batch of coking coal deficit on the Russian market brand “To” the DNI, “donetskstali”, owned by businessman Viktor Nusenkis. The energy Ministry of Russia confirmed the purchase NLMK of coal in Ukraine: representative office, citing data from CDU TEK reported that NLMK imported from Ukraine 78 thousand t of coking coal.

Representative NLMK declined to comment on coal imports from Ukraine. “NLMK is Russia’s largest consumer of coal, its purchases in Ukraine can be a way to achieve more favorable terms from Russian coal”, — analyst BKS Oleg Petropavlovsky.

The representative enterprises of the Russian metallurgy Russian steel declined to comment.

The Ghost of recognition

The Minister of justice of Ukraine Pavel Petrenko said that the introduction of external management at the enterprises nationalization and promised to include this fact in the international claims of Ukraine against Russia. Petrenko expressed confidence that the actions of the authorities of the DNI and LC controlled from Moscow. Press Secretary of the President of Russia Dmitry Peskov said that Russia though, and has influence on the authorities DND and LNR, but overestimate it should not be.

Moscow defends decision of the heads of the breakaway republics, explaining it by the fact that they were put in difficult conditions trade blockade, which was organized by volunteer battalions and members of the Ukrainian Parliament from the opposition faction “Samopomich”. In January blockade activists blocked railway communication, which led to the termination of the supply of coal to Ukraine from the territories beyond the control of Kiev. Blockade of the head of DND and LNR was to ensure the functioning of the enterprises, to preserve jobs, explained the Minister of foreign Affairs of Russia Sergey Lavrov.

Ukrainian authorities blockade blame, but action to unblock the paths not taken. On Wednesday Prime Minister of Ukraine Volodymyr Hroisman has approved the list of goods and organization of their allowance with the uncontrolled territories into Ukraine, but activists about ready to unlock the paths are not reported.

The introduction of external management at the enterprises in the DNI and LC was one of the topics at the next meeting of the trilateral contact group in Minsk, but none of the parties have proposed specific solutions.

A source in the Russian diplomatic circles, the question of whether further recognition of the breakaway DNR and LC with Russia, said that “while it is not necessary to hurry.” However, he said that in the current conditions of the Minsk talks “completely stalled” and “this configuration is not very clear what more to say.” He did not rule out re-negotiations, the inclusion of new questions, particularly about how it will work “nationalized” DNR and LNR Ukrainian enterprises, but, in his words, “everything will depend on the further steps of Kiev”.

According to the head of the parliamentary Committee on CIS Affairs Leonid Kalashnikov, all scenarios until the recognition of the independence of the republics, if Kiev will go to active hostilities.

Political analyst Alexei Makarkin predicts the Transnistrian rather than Abkhazia and South Ossetia, the script. “On the one hand, Russia officially considers Transnistria a part of Moldova and does not recognize its independence, with the other builds with him, including economic relations,” he said . The recognition of DND and LNR entail too big risks for Russia, the expert believes.

The decision on introduction of external management — a movement in the direction of separating the Donbas from Ukraine, but the main injured party: Rinat Akhmetov says the Ukrainian political analyst Volodymyr Fesenko. He notes that the representatives LNR and DND nationalized enterprises, and yet only enter the office and require to pay taxes on their territory, but this does not mean that businesses will stop paying taxes to the Ukrainian budget. Ukraine, according to experts, has not yet suffered significant financial losses. He suggests that the Kiev authorities will not take active steps for lifting the blockade, and will wait until the situation itself will calm down with time Akhmetov and his company can also negotiate the terms of work with representatives of the LC and the DNI.

With the participation of Polina Khimshiashvili, Anton Baeva, Maria Istomina, Sergey Vitko

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