Russian businessman to manage metallurgical assets of Donetsk and Lugansk People's Republics

Donetsk metals smelter. Photo: Zhyrnalistskay Pravda

The metallurgical assets of the Donetsk and Lugansk People's Republics, two self-proclaimed proto-states in the eastern Ukrainian oblast of Donetsk will be transferred under the control of Yevgeny Yurchenko, a well-known Russian businessman and a former head of OJSC Svyazinvest, which was Russia's largest telecommunications holding company in the past.

 

This has been recently confirmed by the authorities of both Republics. On February 27, 2017, the governments of both Republics demanded from Ukraine to end the blockade of Donbass by March 1 of the same year, while failure to comply with the demand led to the introduction of external management at 43 enterprises of Ukrainian jurisdiction, including such large mining and metal companies as the Yenakievsky metallurgical plant and its Makeevsky branch, Khartsyzsky pipe plant, Yasinovsky coke plant, Dokuchaevsky flux-dolomite plant and some others.

 

As part of the plans of local authorities, the attraction of the investor will allow to solve a problem of chronic wage arrears at the enterprises.

 

According to Russian Kommersant business daily, one of the reasons of the current problems of metallurgical enterprises in Donbass is the reduction in the supplies of pig iron through Russian ports to Turkey amid the conditions of its market oversupply.

 

In 2020, exports decreased by 1,5 times, to 287,000 tonnes, although over the past year, pig iron rose in price from $350 to $ 550 per ton.

 

By: Eugen Gerden