News Ukraine
Latest news for today in Ukraine
Zaporizhia Titanium and Magnesium Combine (ZTMC) has been exporting titanium products at prices significantly below the market ones since July this year, which has resulted in the company's significant revenue shortfall and benefited mainly intermediaries.
According to the official announcement by the legal service of Tolexis Trading Limited, damage is caused both to the state, which owns 51% of ZTMC LLC, and to the minority shareholder of ZTMC, Tolexis Trading Limited, which owns 49% of ZTMC LLC.
"Since July 2020, ZTMC LLC exports titanium products at prices that are significantly below market levels. In particular, the transactions concluded by the current management of the company with Tip Trade Industrial Products GMBH (Germany) and ADM Metals GMBH (Germany) provide for titanium sponge sale at $3,000 per tonne, whereas the market price is almost twice as high. In comparison, in the spring of 2020 ZTMC sold similar products at a price of $6,300-8,000 per tonne," says Tolexis Trading Limited representative.
The company also points to another fact of possible embezzlement of funds – the emergence of a straw company with the right to receive payments for products and other receipts in favor of ZTMC in its own bank accounts. In particular, since June 2020, subject to the commercial representation agreement concluded with ZTMC, Premium bar association has obtained the right to receive payment for the produce sold and other ZTMC revenue receipts in its own bank accounts, as well as to receive commission as a percentage of receipts volume.
According to the lawyers of Tolexis Trading Ltd, as a result of such an agreement ZTMС does receive less money from the sale of its products, while ZTMC and its owners suffer direct property damage.
Group DF reported earlier that on September 17, 2020 the High Anti-Corruption Court ordered the National Anti-corruption Bureau of Ukraine (NABU) to open criminal proceedings on the fact of embezzlement of ZTMC's property in favor of third parties and causing damage to the company on a particularly large scale.
In turn, the State Property Fund (SPF) denied Group DF's accusations of embezzlement of funds intended for investment in ZTMC: participants in ZTMC, a 51% share of which is owned by the state of Ukraine, at their meeting on August 10 decided to channel the funds contributed by the investor in the amount of UAH 177.7 million strictly to the reconstruction of the enterprise.
ZTMC is the only manufacturer of metallic sponge titanium in Ukraine and Europe. With the initial capacity of 20,000 tonnes, the company now produces no more than 10,000 tonnes of titanium sponge per year.
The state owns the controlling stake in ZTMC LLC, and Group DF structure holds a 49% share.
Source: www.en.interfax.com.ua
