Kryvorizhstal may be resold again

Ukrainian authorities may demand to abrogate the Kryvorizhstal sale treaty, the State Property Fund stated. The reason for abrogation may become a breach of investment commitments by the owner. The new owner keeps refusing to adhere to a number of privatization terms, including those concerning the remuneration of employees, ITAR-TASS informed.

Earlier, Kryvorizhstal has been considered as the main achievement of the Orange government.

The State Property Fund (FGIU) pledges to defend the case in the court. The suit will be brought if the purchaser – Mittal Steel German Affiliate Company – “does not fulfil its investment commitments within a month,” the FGIU press office informed.

Mittal Steel Kryviy Rih Steel Mill intends to settle vexed question of workers’ salary with FGIU before mid July, Frank Pannier the General Manager, Mergers and Acquisitions said Wednesday at the press conference.

He noted that there is some difference between Mittal’s and FGIU’s interpretations of this issue.

“The matter is that we regards the rise of salary related to the costof living is a one-time action which had to be done right after the bargain and we did it. According to our interpretation of the agreement, there are no obligations to do it in the future,” mentioned Mr. Pannier.

The source revealed that the administration and the trade union of the enterprise have inked the protocol on disputes related to the rise of salary, and the administration intends to settle this question before mid July.

As a reminder, FGIU has charged Mittal Steel Kryviy Rih to scale up the workers’ salary.

Mittal Steel Kryviy Rih, in turns, expresses anxiety regarding the frequency and the high level of governmental inspections of the steel mill.

Mittal Steel Krivoi Rog is Ukraine’s biggest producer of steel products. Its share in the market is as big as 20 %.

The full production cycle combine is capable of manufacturing 6 million tunes of rolled stock, about 7 million tones of steel and over 7.8 million tones of pig iron.

The enterprise has launched the procedure of approval issuing from Cares. The approval will give a possibility to export a rebar to the United Kingdom and other markets.