Branches of United Mining-Chemical Company asking authorities to settle situation with appointment of top managers

Vilnohirsk state mining and metallurgical combine (Dnipropetrovsk region) and Irshansk state mining and processing combine (Zhytomyr region), incorporated in PrJSC United Mining-Chemical Company, have claimed the absence of operational guidance by the head office, threatening a failure to comply with international obligations and large fines.

To normalize the situation in the company, the directors of the branches of Vilnohirsk combine and Irshansk combine sent letters to the president and prime minister of Ukraine, as well as to the SBU, the Ministry of Internal Affairs and the State Property Fund with a request to intervene the situation and stabilize the work of the branches and the company in general.

According to the letters, copies of which the Interfax-Ukraine agency saw, the branches and representative offices are separate divisions of the legal entity United Mining-Chemical Company and cannot independently conduct business activities. At the same time, a situation has now arisen when branches operate under conditions of limited authority and in the complete absence of managerial decisions on the part of the management of United Mining-Chemical Company.

The top managers of the branches are also concerned about the possible financial difficulties in their activities, stating that the management of United Mining-Chemical Company does not respond to letters from the branches regarding the provision of proper management of the financial and economic activities of the branches by the management of the parent company.

Due to the lack of funding for the activities of Vilnohirsk combine and Irshansk combine, there is a real threat of a complete shutdown of enterprises, the branches said in the letters.

The directors' appeals provide data on the payment of taxes and it is noted that if the branch are halted, local budgets will not receive significant funds. In addition, failure to fulfill contracts for the supply of products will result in fines of approximately $15.541 million for Irshansk combine and $67.392 million for Vilnohirsk combine. At the same time, the total loss from halting Irshansk combine will be about UAH 800 million, and Vilnohirsk combine – UAH 1.2 billion.

Given this, both branch directors appealed to the country's leadership, ministries and departments with a request to take urgent measures to ensure effective management of the company and divisions.

Source: www.en.interfax.com.ua