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ArcelorMittal, Ukrainian Government to Restart Negotiations
10/13/2010 - ArcelorMittal representatives have expressed their willingness to return to negotiations of the investment agreement with the Ukrainian government, after the Kyiv City Commercial Court dropped the case upon the withdrawal of the General Prosecutor's claim.
ArcelorMittal representatives have expressed their willingness to return to negotiations of the investment agreement with the Ukrainian government, after the Kyiv City Commercial Court dropped the case upon the withdrawal of the General Prosecutor's claim.
Cristophe Cornier, Vice President and Management Board Member, ArcelorMittal, said, "We welcome the decision to stop these proceedings. We are grateful to the Cabinet of Ministers for their consistent support throughout this process. We welcome the government's proposal for discussions on our operations and projects in Ukraine."
Ukrainian President Viktor Yanukovych recently pledged that there would be no re-privatization of the steel mill and that the ownership rights of the largest foreign investor in the Ukrainian economy would remain intact, according to ArcelorMittal. The President predicted that the court proceedings would be closed shortly.
Representatives of ArcelorMittal Kryvyi Rih, the Ukrainian subsidiary of the international steel group, have already confirmed they are ready to restore the negotiations with the Ukrainian government.
"If the State Property Fund or Ukrainian Government has any proposals or critical comments, we are always ready for an open dialogue at the negotiations table in order to find a compromise solution," said Rinat Starkov, the Director General of ArcelorMittal Kryvy Rih.
The company expects a “reciprocal step forward” from the Ukrainian Government.
The ArcelorMittal case came up as the Prosecutor General's office had alleged that the company violated terms of its 2005 purchase of the eastern Ukrainian plant by subsequently delaying investment in it without valid permission. ArcelorMittal said it reached a legal agreement with Ukraine's State Property Fund to put off investment commitments after declaring force majeure in the global downturn of 2008-09.
