Militants Seize Donetsk Electrometallurgical Plant

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Thursday, 21 July 2016, 23:38

Russian Mechel company received a decree on the introduction of interim administration in one of its companies — Donetsk Electrometallurgical Plant (DEMZ), signed by the leader of the so-called DNR Alexander Zakharchenko. The decree says that a new company will be created based on the plant, and the property of the plant is to be passed on to this company.

"According to the preliminary evaluation of the situation, there is a risk for Mechel to lose control over any manufacturing and commercial activities of DEMZ for an undefined period of time," Mechel’s statement says. "Mechel is currently carrying out legal evaluation of this situation and, should the need arise, will take all necessary measures to protect its rights and interests in a manner prescribed by the law."

At the same time, acting Industry Minister of the self-proclaimed DNR Aleksey Granovsky said that DEMZ may return to Mechel’s control. "If the owner will relaunch the activities of DEMZ on the territory of the republic and provide jobs for 700 people, I believe that the council of ministers would make a positive decision to return the company to the owner."

Granovsky also said that the plant could be returned if Mechel reimburses all funds that the so-called DNR would spend on relaunching the manufacturing process and ensuring the stable operation of the plant.

DEMZ stopped working in December 2012. Mechel explained this decision was due to unfavorable market conditions. In 2013, there was talk of selling, and in June 2014, the general director of Mechel Oleg Korzhov announced ‘ongoing negotiations’ with Ukrainian businessmen. In early 2015, Mechel managers said that they were not currently considering to sell the plant.

Since the early days of the conflict in the eastern part of Ukraine, local businesses have complained about racketeering and other unlawful actions from the representatives of the so-called LNR and DNR.

Source: Meduza, TASS

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