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ISD officially announces the termination of production of metal products, coke, electricity AMK

Corporation “Industrial Union of Donbass” (ISD) has officially declared the termination of the production of steel, coke and electricity at its plant Alchevsk metallurgical plant (AMK, Luhansk region) on February 16 due to the blocking of the railway on the border demarcation in the area of the ATO.

In an official statement, the Corporation stated: for nearly three years ISD daily experiences extreme difficulties in production activities in the current socio-political conditions.

“Unfortunately, in February of 2017, the situation escalated to the limit, our industrial enterprises, in fact – forming, in Alchevsk just stopped. Officially confirm that starting from today (16 Feb – if), Alchevsk completely stopped the production of iron, steel, rolled, metallurgical coke. Also completely stopped the generation of electric energy,” – said in a statement.

As noted by ISD, AMK is a unique industrial complex that has no analogues in Europe .

In addition, the Dnieper metallurgical plant (DMP, Kamenskoe Dnepropetrovsk region) is also on the verge of stopping production, as it depends on the supply of coke Alchevsk (“Alchevskkoks” is part of the AMK – if).

“We do not intend to evaluate specific policies and politicla who are involved in different processes related to the creation of obstacles in activity of industrial enterprises. We basically out of politics. For more than 20 years, we have dealt with the economy, innovations, investments, industrial development, creation of social infrastructure around our factories. We have much to be proud of. Our factories is not only business units. It is extremely important elements of the economy and infrastructure of the state as a whole, is the largest taxpayers and employers,” reads the official position of the ISD.

The Corporation is convinced: “the People who block the work of industrial enterprises, operating exclusively in accordance with the laws of Ukraine, obviously, is simply not able to adequately assess the negative consequences for the state and citizens, which will only accumulate with each day of downtime of the largest industrial enterprises in Lugansk and Donetsk regions and in other regions of Ukraine”.

It is stated that subsequent blocking of activity of industrial enterprises leads the government to macroeconomic turbulence, whose consequences will be felt every family in the short term: job cuts, layoffs, falling exports, reduced foreign exchange earnings, devaluation of the national currency.

“Note: of course, it is hard to hear statements by the representatives of “LNR” on any form of forced “nationalization” of our unique enterprises, located in Alchevsk. Our enterprise is an extremely complex modern industrial complexes that require a high level of professional work with them, a continuing influx of unique professionals, international consultants, established systems of financing the production activities, distribution channels in international markets”, – said in a statement.

Forced “nationalization” of entities that do not have any recognized legal status, these enterprises will actually become a series of buildings that will not be able to exercise any effective economic, industrial, financial and trade activities. With such a subject from the “uncertain legal status” in the future there will be cooperation with international banks, financial institutions, insurance agencies and other important participants in international economic relations. This will lead to the accelerated loss of productive assets to their economic value and social upheaval in the city and the region, since the content of thousands of the workforce – are absolutely real social and financial responsibility of the owner.

As noted in the statement, the property rights of mortgagees in a substantial part of property complexes of the enterprises of ISD are the international Finance Corporation (IFC), European Bank of reconstruction and development (EBRD) and a group of international banks to Finance the development of different elements of Alchevsk industrial complex. In this regard, a forced “nationalization” would be a flagrant violation not only of the right of ownership of the ISD, but also the property rights of international creditors.

“We urge all parties to all forms of political and parapolitical processes, all forms of confrontation on both sides of the line of demarcation to refrain from military interference in the activity of industrial enterprises. We want to deal with the economy and production, to pay wages and give people faith in the future at such a difficult time”, – summarized in the statement, released by the Corporation on Thursday evening.

ISD was founded in 1995. Is an integrated holding company owning blocks of shares of enterprises of mining-metallurgical complex. The Corporation consists of Alchevsk and Dnipro steelworks, steel works ISD Dunaferr, and ISD-Huta Czestochowa.

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