Crimea TITAN statement concerning lease of Volnogorsk Mining and Metallurgical Complex and Irshansk Mining and Concentration Complex

Crimea TITAN JSC, a leaseholder of the integral property complex of Volnogorsk Mining and Metallurgical Complex and Irshansk Mining and Concentration Complex, has not received and has not signed any documents concerning the transfer of Irshansk MCC and Volnogorsk MMC to the state. Thus, under the existing law of Ukraine, the fact of such transfer did not occur. All statements of officials about the restitution of these companies to the state are untruthful and premature.

As of today any Ukrainian state authority has no right to implement the procedure of Irshansk MCC and Volnogorsk MMC transfer to the state. During the period of July-August 2014 the Cabinet of Ministers and the State Property Fund adopted amendments to laws that considerably change the procedure of restitution of leased Irshansk MCC and Volnogorsk MMC to the state. In particular, the State Property Fund issued decrees that violate existing laws and change the inventory procedure of Irshansk MCC and Volnogorsk MMC by rescheduling its terms to appreciably sooner time. The leaseholder did not agreed with these violations and referred to the Kyiv Regional Administrative Court. On 4 September, 2014 the Court ruled a decision to prohibit to the State Property Fund and other authorities, including law enforcement, to implement a transfer or a restitution of the leased integral property complexes to the state till the end of the case and the final decision.

Statements of officials concerning obstruction to inventory of integral property complexes are incorrect and mislead society. In particular, the State Property Fund conducted an inventory of these complexes with violations of statutory procedure. Crimea TITAN JSC did not take part in this inventory but did not obstruct it as well.