The Justice Ministry is recommending that the Prosecutor-General's Office (PGO) file a lawsuit demanding that the Pryvatbank group return ownership of the 26% stake in the Nikopol ferroalloy plant that is presently under the control of the group to the state. Acting Justice Minister Roman
Zvarych announced this in an interview with the Kommersant Ukraina publication.
"26% of the shares in the Nikopol ferroalloy plant are in the hands of the Pryvat group, and the ministry is convinced that it should also be returned to the state," Zvarych said.
According to him, the Justice Ministry prepared a draft of the relevant lawsuit in August and sent it to the Prosecutor-General's Office with the recommendation that the lawsuit be filed. Zvarych said that the Prosecutor-General's Office has not yet done so.
Zvarych also said that the Justice Ministry possessed documents demonstrating that 50% + 1 share in the Nikopol ferroalloy plant presently belongs to the State Property Fund, as a result of which he is surprised by the position of the State Property Fund's Chairwoman Valentyna Semeniuk, who denies this fact.
As Ukrainian News earlier reported, the Supreme Court refused on September 8 to consider Prydniprovia's appeal against the High Economic Court's ruling that the sale of 50% + 1 share in the Nikopol ferroalloy plant to the Prydniprovia consortium was illegal.
The High Economic Court declared on August 26 that the privatization of 50% + 1 share in the Nikopol ferroalloy plant by the Prydniprovia consortium was illegal and ruled that the agreements between the State Property Fund and the Prydniprovia consortium on sale of 50% stake + 1 share in the plant to the Prydniprovia consortium were invalid from the moment they were signed in 2003.
The State Property Fund sold 25% of the shares in the Nikopol ferroalloy plant to the Prydniprovia consortium for UAH 205 million in May 2003 and sold 25% + 1 share in the plant to it for UAH 205.5 million in August 2003. The Interpipe corporation, which was founded by businessman and
Parliamentary Deputy Viktor Pinchuk, controls Prydniprovia.
Bipe Co. Ltd. (Dnipropetrovsk), which has links with Interpipe, bought 26% of the shares in the Nikopol ferroalloy plant from the State Property Fund for UAH 53 million in July 2003 and later sold 13% of the shares in the plant to the Pryvatbank group.
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