“Mechel” has warned about the threat of losing control of the plant in the Donbass

Photo: Andrey Rudakov ” /Bloomberg

“Mechel” has received notification from the authorities of the DNI about the introduction of temporary administration at the Donetsk steel plant. DNR authorities say they will return the property of the plant, if the “Mechel” promises to reopen it

Russian mining company Mechel has received a notice of introduction of temporary administration on the part of the group “Mechel” Donetsk electrometallurgical plant (DEMZ), said on Thursday the press-service of the company. The order dated June 25 and signed by head of the breakaway Donetsk national Republic (DND) Alexander Zakharchenko. It States that on the basis of DEMZ created the company “yuzovsky metallurgical plant”, which receive all the property.

“Mechel,” notes that, according to preliminary estimates, the company “there is a risk of loss of control indefinitely over any future production and commercial activity Dasa”. The company carried out legal examination of the situation and declare their readiness to take action to protect their rights and interests.

However, the press service noted that the financial results of Mechel incident will not affect.

As stated by “RIA Novosti” Deputy Minister of industry and trade of the DNI Alexei Granovsky, the self-proclaimed authorities of the Republic will be ready to return to “Mechel” property DEMZ if he promised to resume the work of the enterprise.

“The head of the Republic has a clear position: the property is inviolable, therefore the audit is now. There are two solutions. First — the owner says it will run the plant and hire people,” said Granovsky. The second option, he said, is the recognition of the DNI in the international legal field, the property of “Mechel” will also be returned.

Granovsky said that DEMZ is not operated in 2013, then the plant employs 700 people, according to him, left 200 people. “The arrears of salary of about 20 million rubles for the land do not pay, do not pay taxes. The task of the state — and save the plant itself, and to provide citizens with jobs”, he added.

Mechel bought Donetsk electrometallurgical plant in 2009, together with other enterprises of holding “Estar” Vadim Varshavsky. For the debts of the holding company the factory then was included in “the alpha-Groups” company A1, resemble “Vedomosti”.

The transaction value amounted to $537 million, but Mechel agreed to pay the amount in equal installments monthly from 2011 to 2018. In 2014, the General Director of Mechel Oleg Korzhov said that the events in the Donbass is not affected by the plant. According to him, the company was closed after the Ukraine has a deficit of scrap and prices it did not allow the plant to operate effectively.

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