OSTCHEM Press Office Statement due to the Charging of OSTCHEM Executive Officers with Embezzlement of Public Funds

Arsen Avakov, Minister of Internal Affairs of Ukraine, charged OSTCHEM executive officers with embezzlement of public funds and announced yesterday about the opening of the criminal proceeding on his Facebook page.

In this regard, OSTCHEM states:

1. OSTCHEM enterprises – Azot PJSC, Rivneazot PJSC, Concern Stirol PJSC and Severodonetsk Azot Association PrJSC are not budget holders and that is why they cannot manage budget funds and all the more “embezzle” them.

2.  OSTCHEM enterprises’ debts to NJSC Naftogaz of Ukraine were formed almost entirely in the period prior to the acquisition of these companies by Group DF (2010-2011).

3. State companies’ debts to OSTCHEM nitrogen group significantly exceed the OSTCHEM plants’ debts to government institutions. Particularly, Odessa Port Plant owned by the state owes UAH 5 billion to OSTCHEM enterprises. Nevertheless, OSTCHEM does not take any measures to recover these debts, understanding current financial and economic situation in the country.

4. We emphasize that OSTCHEM enterprises continue to pay wages fully and timely to many thousands of employees. Even though two out of four plants – Stirol and Severodonetsk Azot – were ceased for reasons of safety because of military conflict in last May.

We consider that the existing disagreements between business units of different forms of ownership cannot be a ground for public accusations against OSTCHEM employees. Moreover, this right is exceptionally within the competences of judicial authorities of Ukraine.