RE: Meneral Deal joint press conference at 13:00pm Washington time28 Feb 2025 12:58
Part3 At the same time, the security forces are putting pressure on the company. Various law enforcement agencies are investigating seven cases regarding Ferrexpo enterprises in Ukraine, said Viktor Lotous, head of Poltava GOK. In particular, the police suspect the company of illegally selling waste from the production of iron ore pellets for UAH 157 billion. Ferrexpo denies all accusations.What are the chances of nationalizing Poltava Mining and Processing Plant in 2025?
On February 12, 2025, Volodymyr Zelensky imposed lifelong personal sanctions against Zhevago. They provide for the blocking of assets, the complete cessation of trading operations and the withdrawal of capital, a ban on participation in privatization, leasing of state property, etc.
Although sanctions do not directly allow the nationalization of assets, the fact of their introduction allows the HACC to make a decision in favor of the Ministry of Justice, explains Stanislav Borys, Managing Partner of the Vidar Law Firm. “To nationalize assets, the Ministry of Justice must prove that the owner of the assets poses a threat to national security,” says Borys. “And this has already been established when the National Security and Defense Council made a decision on sanctions.”
In 2024, the Ministry of Justice filed 27 lawsuits with the HACC on the nationalization of assets, of which the court satisfied 85%, or 25 lawsuits. "We have created a clear algorithm of actions for processing each decision of the National Security and Defense Council, in relation to each person to whom the blocking sanction has been applied," the press service of the ministry quotes Deputy Minister of Justice Inna Bogatykh as saying.
Among the most high-profile nationalizations are assets of exclusively Russian businessmen: Mikhail Fridman's Sens Bank, Eduard Khudainatov's share of the Shell gas station chain, Oleg Deripaska's Nikolaev Alumina Plant, and the Rotenberg family's Ocean Plaza.here is a weak point in the law enforcement position. It is not known how exactly Zhevago's share in Poltava Mining and Processing Plant was calculated. The Ministry of Justice wants to nationalize 49.5% of the shares of Poltava Mining and Processing Plant, which is 100% owned by the Swiss Ferrexpo.
Zhevago's share in the parent company is also 49.5%. But how will the Ministry of Justice determine that it nationalized the part of the plant that belongs to Zhevago, and not, for example, to BlackRock? It may turn out that the Ministry of Justice nationalizes proportionally the shares of all shareholders, and not just Zhevago, says Dragon Capital analyst Denis Sakva.
"A share in a parent company cannot be automatically transferred to a subsidiary share," says Boris from the Vidar law firm. "Law enforcement agencies most likely have a poor justification for this."