Concern Stirol to provide each family of the casualties of the tragic accident with UAH 1 million in compensations

Concern Stirol, JSC, part of OSTCHEM holding (consolidates nitrogen chemicals producers of Group DF) will provide UAH 5 million in compensations to the families of the five company employees who became tragic casualties of the ammonia emission accident happened on 6 August. The compensations will be provided over the following week. Concern Stirol will also cover all taxes associated with these compensations. This has been confirmed today by Dmitriy Firtash, the Founder and Chairman of the Group Supervisory Council of Group DF, during his meeting with Stirol’s employees today.

Concern Stirol will also cover all cost associated with treatment and rehabilitation of all employees affected by the accident, as well as paying additional compensations to them. The concrete amount any such compensation will be determined by a special commission created at Stirol. This commission will take into account both medical and social conditions of the employees. Concern Stirol will also allocate funds to cover education fees of children of victims of the accident at vocational schools and higher learning institutions.

All payments to the victims and their families will be made by Concern Stirol in addition to compulsory compensations according to Ukrainian laws.

"I deeply and wholeheartedly commiserate with the families which have lost their relatives, and with the team of Stirol’s employees who have lost their colleagues and friends. Our goal now is to support them at this difficult moment and to make everything possible for those undergoing medical treatment at the moment”, added Dmitriy Firtash.

Earlier, Mr Firtash thanked Stirol’s personnel for following all instructions and regulations in a timely and professional manner, which helped rectifying the ammonia pipeline breakdown within 30 minutes. Repeated inspections by respective authorities confirmed no environmental hazard for Gorlovka inhabitants.

The accident happened yesterday at the No.1 Plant which is currently undergoing a scheduled overhaul. The liquid ammonia emission happened at 14:00 as the result of unsealing of the pipeline. Five employees of the plant were killed and 22 had burns and poisoning and were taken to a hospital. A specially established commission is working on the site. Stirol’s management fully cooperates with the investigation into the cause of the accident providing all necessary information and assistance.

NOTE

Concern Stirol, JSC, was founded in 1933. It is the largest mineral fertilizer producer in Ukraine which supplies around 3% of global ammonia, urea and polymeric products exports to the global market. It is the only company in Ukraine producing expandable polystyrene. In September 2010, Concern Stirol became part of OSTCHEM holding controlled by Group DF founded and owned by Ukrainian businessman Dmitry Firtash.

OSTCHEM consolidates nitrogen chemicals producers of Group DF and includes Azot, JSC (Cherkassy, Ukraine), Concern Stirol, JSC (Gorlovka, Ukraine), Severodonetsk Azot Association, JSC (Severodonetsk, Ukraine), Rivne Azot, JSC (Rivne, Ukraine). OSTCHEM’s fertilizer distribution arm is represented by UkrAgro NPK, while its shipment arm is represented by Nika-Tera Specialized Seaport.


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