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Tolexis Trading Limited to appeal against court decision to terminate ZTMC ltd incorporation agreement

Tolexis Trading Limited will appeal against the decision of the Central Commercial Court of Appeal to terminate Zaporizhzhya Titanium and Magnesium Combine LLC incorporation agreement between the State Property Fund of Ukraine and Tolexis Trading Limited (Cyprus), a ZTMC investor, as well as to return the integral property complex to the state (case No. 910/1245/17 of November 30, 2021).


This decision was unfounded and politically motivated and abused the legal procedure.


“We will definitely appeal this decision in the Supreme Court of Ukraine,” said Roman Chishinsky, a lawyer for Tolexis Trading Limited. “Hastened decision-making and a series of breaches of legal procedure that we have observed give us all reasons to claim that judges were exposed to some political pressure. Tolexis Trading Limited was not granted the opportunity to represent its interests in court, the trial took place without our representatives. It should also be noted that the Panel of Judges was changed on several occasions for no apparent reasons.”


The position of Tolexis Trading Limited in this dispute remains unchanged: the decision to terminate ZTMC LTD incorporation agreement and to transfer the integral property complex to the state is illegal. Investor delivered on its contractual obligations in full and invested $110 million in ZTMC Ltd.


“This is part of an illegal takeover intended to “squeeze” the company out from a foreign investor in the interests of a specific buyer. These actions by the Government officials will totally discourage foreign investors to take part in privatization,” added the lawyer.



 Zaporizhzhya Titanium and Magnesium Combine Ltd was established in 2013 by the Government as represented by the State Property Fund of Ukraine (owns 51% of the authorized capital) and Tolexis Trading Limited (Cyprus) (owns 49%). On May 29, 2020, the State Property Fund of Ukraine decided to change the management of ZTMC Ltd and appointed Sergii Lubennikov as an acting Director of ZTMC Ltd.  


Since May 2020, ZTMC Ltd. has been under the full control of the State Property Fund of Ukraine which owns 51% of ZTMC’s shares.