“Unprecedented speed” process
The Antipov couple, owners of the Chelyabinsk Electrometallurgical Plant (CHEMK), objected to the court decision to transfer all shares of the holding to the state, reported RIA Novosti, with reference to data from the Arbitration Court of the Sverdlovsk Region.
“The appeal will be considered in Perm at the seventeenth arbitration appeals court,” the court’s press service said.
The Antipovs filed an objection on March 5. On the same day, the court received petitions from Serov Ferroalloy Plant JSC and Kuznetsk Ferroalloys JSC (part of the CheMK group) to cancel interim measures. (temporary restrictions established to protect disputed property during legal proceedings).
The former owner of the facility, millionaire Yuri Antipov, is now passes witness in a fraud case.
The media wrote that he was detained, but RIA Novosti’s source in the law enforcement agencies of the region denied this and explained that the businessman was “brought” to Chelyabinsk for interrogation and then released without a written commitment not to leave.
Chief Public Prosecutor’s Office filed Case against CHEMK on February 5. The ministry demanded the withdrawal of shares in favor of the state of three large enterprises: ChEMK JSC itself, Kuznetsk Ferroalloys JSC and Serov Ferroalloy Plant JSC.
Legal process progressed at “unprecedented speed” registered regional publication ngs.ru. The next day, February 6, the court opened the case and seized the shares and properties of the three factories. The court made its final decision on February 26 to settle the claim and turn everything over to the state. The meeting took place behind closed doors.
Why were the factories taken away?
The Attorney General’s Office believes that these businesses are the largest producers of ferroalloys in the country. Factories are of strategic importance for the country’s defense as they are used in the production of weapons and ammunition. Privatization took place “against the will” of Russia. The Ministry is sure that the decision on this was made illegally more than 30 years ago.
The Chief Public Prosecutor’s Office emphasized that “The Russian Federation, the owner of the facility, did not carry out the privatization.”
While privatization had to be approved by the government, it was approved by local governments with excessive authority.
The ministry added that the factories were now “under the control of residents of unfriendly states”. We are talking about the Canadian-Swiss company RFA International, which is a trader.
“Products (ferroalloys) produced by factories against national interests are exported at lower costs to the USA, France and England, which pursue an aggressive policy against the Russian Federation and supply weapons to Ukraine.” the prosecutor’s office said.
“The business world has no choice”
All enterprises in Russia were privatized according to the same scheme and only questions about CHEMK arose, and after 32 years, perceived Press service of the holding. They explained that in the 90s, the federal center gave “direct, clear instructions” to carry out the privatization of all industrial enterprises within six months. His plan was adopted by “worker collectives” and the Ministry of Industry of the Russian Federation and government bodies based on the decree of President Boris Yeltsin.
Holding representatives stated that the ferroalloys coming out of the factories do not go directly to the military-industrial complex (MIC). They are handed over to metallurgists. They make steel, and defense factories produce everything from it for military purposes.
The company noted that for CHEMK the domestic market is more important and much more profitable than the foreign market, and the holding is obliged to work with foreign traders according to the objective laws of the market. Now there is a crisis, metal prices are falling, so we have to look for buyers all over the world. Factories cannot sell products only to friendly countries, there will be no demand there.
“We would be very happy to concentrate our supplies on the domestic market or trade ferroalloys only with friendly China and India. But these countries are the largest producers, their markets do not need Russian products…
Absolutely all domestic industrialists are doing the same thing… Modern business has no choice. Can interacting with strangers be considered “being in control”? This is a statement from 1937,” the press service summarized.
According to him, the breakdown of contracts with traders from “hostile countries” will lead to a decrease in production and layoffs at factories in the Russian Federation.