РJSC'ArcelorMittal Kryviy Rih'
РJSC "ArcelorMittal Kryvyi Rih"


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Comment of Chief Legal Counsel of ArcelorMittal Kryvyi Rih

ArcelorMittal Kryvyi Rih informs that as a result of the search performed by the investigation department of the Security Service of Ukraine in Dnipropetrovsk region on July 20, continuous casting machine No. 3 and some parts of equipment were withdrawn. The comments on this fact of Chief Legal Counsel of ArcelorMittal Kryvyi Rih Artyom Filipyev are given below at the following link.

18 representatives of the Security Service of Ukraine, a specialist of the State Emergency Service of Ukraine and the State Nuclear Regulatory Inspectorate of Ukraine were given access to the territory of ArcelorMittal Kryvyi Rih on July 20 for the search of continuous casting machine No. 3. A group of inspectors entered the plant at 10:00AM on July 20 and left the territory of the plant at 3:00AM on July 21.

A complex of new CCM-2 and 3 is one of the key investment projects of the company, which cost comprises about 150 mln USD. Withdrawing of CCM-3 makes continuation of construction in correspondence to the modernization program impossible and inflicts damage directly on ArcelorMittal.

Continuous casting machine No. 3 has three molds, each of them having a source of ionizing radiation installed in it. All equipment corresponds to the EU norms and is similar to the one used at the European assets. During the inspection radiation field was measured at the distance of 10 cm from the surface of the lid of the mold, it comprised 0.15 microsieverts per hour - the indicator is in line with the norm). But based on the suspicion of the criminal investigators in the reequipment of the sources of radiation in the casing of six molds of the machine a decision was taken to withdraw the equipment for further investigation.

Search and investigative activities lasted for more than 14 hours. During all this time the employeess of ArcelorMittal Kryvyi Rih had to accompany the respresentatives of the Security Service of Ukraine and to provide the documents and comments upon their request. Such actions can be legally considered as a violation of the form of action.

At present time it is not clear what will be the duration of inspection of CCM-3 and documents performed by the Security Service of Ukraine, and what are the next steps forward. In view of the big size of the object the employees of the department of the Security Service of Ukraine took a decision to leave the withdrawn asset at its actual location without a possibility to seal it. At the same time there are no means to limit the access for the outsiders. This way, ArcelorMittal Kryvyi Rih does not have any possibility to continue construction, modernization, to plan production of products and to conclude contracts for the supply of billets to the clients. The project is frozen. The employees of ArcelorMittal Kryvyi Rih and contractors will not be able to perform further work at this asset.

ArcelorMittal Kryvyi Rih considers the recent evets to be a new reference point in the relationships between the state and foreign investors and a serious alarm for the business community telling about the reality of business protection in Ukraine. The company is seriously concerned about the point that law enforcement authorities consider that the biggest foreign investor is a threat to the national security of Ukraine. Management of the plant personally appeals to the President of Ukraine and the world community with a request to interfere with this situation and stop the unprecedented pressure on the foreign investor.

More on this topic: https://ukraine.arcelormittal.com/index.php?id=10&pr=698 https://ukraine.arcelormittal.com/index.php?id=10&pr=697 https://ukraine.arcelormittal.com/index.php?id=10&pr=694

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