Semenyuk and Mittal: who is invest-obliged and whom?

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n political battles around "ArсelorMittal Kryvyi Rih" Valentyna Semenyuk-Sumsonenko appears not as the Victor Yushchenko’s representative of interests, but as independent political player.

EP source reported from Fund of state property that during the working visit of president of Ukraine on September, 9 to France, this country's leader Nikolya Sarkozi let Victor Yushchenko see that the entry of Ukraine to European Union will depend from the subsequent fate of "ArсelorMittal Kryvyi Rih".

"That is not the case that influence on the powerful factory’s fate of political factors frightens off the potential investors. General Director of «ArсelorMittal Kryvyi Rih» Jean Zhue is a particular friend of Nikolya Sarkozi", - EP source informed.

Then the President of Ukraine had a conversation with the chairman of SPF (State Property Fund of Ukraine). But according to a source, Valentyna Semenyuk-Sumsonenko did not wish to diminish pressure on an investor and even sent the letter with new claims to the management of "ArсelorMittal Kryvyi Rih". But a letter did not reach as though.

It should be mentioned that Yushchenko applied to Semenyuk earlier with a request to "consider the possibility of re-check the conducting of points’ implementation of Agreement... and to define the ways of adjusting differences". The proper letter was sent on July, 29.

The main idea of the letter was: "The question of court claim on termination of Agreement will cause the substantial resonance in the world, can result into the loss of investors’ trust, in the first place foreign, and will decrease their personal interest in participating in subsequent privatization of the objects of public domain".

As a matter of fact the investor is tested if he will survive or not. In spite of that fact that Lakshmi Mittal has a considerable influence on both businesses and political world.

"In the whole world the conflicts are tried to be decided in a peaceful way and courts are involved in extreme cases. Here we have an investor which is ready to have a peaceful settlement, and Fund does not want it and immediately wants the judicial red-tapery", - EP source in SPF informed.

The problem of the control implementation of the invest-obligations arose up because of the agreement diffusion. It is not cleared up how to determine the terms of contract. In fund’s opinion (Semenyuk-Sumsonenko) the count should be begun from the State Commission approval’s act. But Agreement doesn’t have any word about it. And this fact was accented by a parliamentary commission which checked the implementation of invest-obligations'.

"We have the entry in our internal documents, that all such works of implementation should be confirmed by the act of state commission. They ("ArсelorMittal Kryvyi Rih" - EP) say: please, show us, where can you find the entry “State Commission’s Act” in the Agreement? This normative document is yours and we haven’t any relation to it", - EP source in SPF informed.

In other words, the investor conducts all the measures are needed to fulfill the obligations. We have the project of reconstruction of cokes batteries №№3, 4, the order on its realization, there is a contractor and there is the Customer’s signature on the Statement of Acceptance. But the signing of Acts of Admission to the Exploitation is dragged out by the State Commission. In line with EP it does not explain what concrete complaint it has relative to "Arselormittal". The new owner doesn’t have the possibility to use influence on her, but Fund doesn’t take it into consideration and accuse of non-fulfillment.

However, in the expert group’s conclusion of the Industrial Policy Ministry, which learned the act of "verification of implementation of terms of the agreement... which were conducted by the State Property Fund of Ukraine since March, 24 to March, 28 of the current year", that the working commission’s acts "about the readiness of the built object" are dated on January, 18 and on February 25, 2007. The batteries are put into operation and already work.

If we examine the reconstruction measures of sulphur brighten workshop of coke-chemical production "with the purpose of achieving the level of coke gas cleaning to sulphuretted hydrogen content of 0, 5 g/ cubic meter", it was put into exploitation on December, 27 last year.

"The Act of the State Selection Committee on putting into operation of the cokes batteries’ built object №№3, 4 and sulphur brighten workshop dd. 22.08.2008 has the registered number 188 on Septembers 03, 2008. It was registered by Kryvyy Rih Regional Department of Inspection of a state architectural build control in Dnepropetrovsk region, and it is ratified by the decision of Executive Committee of Kryvyy Rih Local Council under №656 on Septembers 03, 2008", - it is mentioned in a conclusion.

A fund and investor argue concerning the point of social commitments’ fulfiling. For example, investor considers that expenses on improvement of the employees’ health etc. should be added to the point of security expenses "on the improvement of the employees’ social conditions at the level of not less then 0, 5 percent from the sum of the realized products of society per year".

In summer Jean Zhue asked SPF to facilitate receiving of the plot of land for building which will be distributed free among the "ArсelorMittal Kryvyi Rih" employees. With the beginning of autumn he already sent the same request to the special parliamentary commission which checked up the implementation of the invest-obligations. It means that the investor wants to fulfill the commitment, but he faces with the problem of the legislation absence or correctly extracted points of agreement.

Unwillingness of Semenyuk-Sumsonenko to renounce her claims against the new owner of "Kryvorizhstal’" is possible to be explained as a good PR in the context of her intentions to be the candidate on the post of president. We’d like to remind you hat this year in spring she was chosen the candidate by the convention of Socialistic party.

At the same time it’s not of any earthly use to rule out the possibility of making attempts to display the conflict Yushchenko-Tymoshenko acting as Tymoshenko-Semenyuk conflict.

Periodic accusations against the investor, similar to those which were heard from the side of Semenyuk-Sumsonenko this year in summer, cast doubt on correctness of the sold enterprise just to him. And at the same time, nobody has the impression, that it is the position of Victor Yushchenko.