ArcelorMittal confirms the freezing of its accounts in Ukraine

Expresses indignation

ArcelorMittal has confirmed that a court ordered the freezing of Ukrainian bank accounts at its subsidiary in Ukraine after the steel giant was charged with tax evasion.

ArcelorMittal’s accounts were frozen on January 4, 2022, after the court ruled in favor of a request from the Ukrainian Attorney General’s office.

The article, which was first published by the Financial Times, and reprinted by the New Dawn in its Monday January 10 edition, indicated that ArcelorMittal’s bank accounts in Ukraine were frozen by the court after a a senior manager of the company had been charged with tax evasion.

ArcelorMittal and its subsidiary ArcelorMittal Liberia are currently seeking an extension of their mining development contract here with an amended MDA before the Liberian legislature for ratification.

While there are currently no charges against the company for its tax transactions or an investigation, there have been a series of objections against extending the company’s MDA with prominent sons from host countries who opposed the new agreement.

Reuters news agency reported in 2019 that Ukrainian authorities were carrying out a tax audit of the company’s operations.

The funds were blocked by the prosecutor’s office and the Kiev Shevchenkivskyi court.

In a statement transmitted to this newspaper by ArcelorMittal Liberia on Monday, January 10, the company said that a representative of the Attorney General’s office appealed to Ukrainian banks to comply with the court’s decision of November 30, 2021 to enter the company’s accounts.

He said the dispute was over the approach to calculating the rent. On November 4, 2021, the District Administrative Court upheld ArcelorMittal Kryvyi Rih’s position and dismissed an administrative lawsuit brought against the company by the state tax service. ArcelorMittal explained that an appeal has been filed with the tax authorities and that the company is preparing to defend its position before the Administrative Court of Appeal.

He said that despite the administrative court ruling in favor of ArcelorMittal Kryvyi Rih, on November 17, Ukraine’s Attorney General’s Office and Security Services opened criminal proceedings against one of the leaders of ‘ArcelorMittal Kryvyi Rih.

“The company considers these accusations to be baseless and a clear example of political pressure on the largest foreign investor. However, these far-fetched criminal charges are brought against an individual, not a business. Currently, no civil proceedings are pending against ArcelorMittal Kryvyi Rih, so there is no legal basis for blocking the company’s accounts, ”explained ArcelorMittal.

Artem Filipiev, Deputy General Manager of Administrative Affairs of ArcelorMittal Kryvyi Rih: – The rule of law, as a principle, seems to be completely destroyed in Ukraine. After the district court ruled in favor of ArcelorMittal, and while the administrative taxpayer lawsuit is pending, the attorney general’s office took aggressive action against the company, contrary to both letter and spirit. of the law. It is unacceptable and unheard of in any reasonable jurisdiction in the world. Since the start of the new year, our company has received yet another eloquent confirmation that the state is hostile to foreign investors. It is scandalous that law enforcement is prepared to cripple the work of the country’s largest mining and metallurgical company and endanger more than 20,000 people who do not receive their wages on time. These allegations and seizures of accounts are unfounded, and we will defend the legitimate interests of our business.

The company said that as a global business, ArcelorMittal is committed to operating in accordance with tax rules and regulations wherever it operates. “We have taken this approach in Ukraine and paid all taxes in accordance with the legislation, thus making a significant contribution to the Ukrainian economy.

As Ukraine’s largest foreign direct investor, we need legal certainty to facilitate a stable investment and operating environment. ArcelorMittal considers this action (freezing our bank accounts) to be illegal and is taking appropriate legal remedies to defend its position in the appropriate courts.

There is no risk to business continuity and the situation is under control. Salaries have been paid on time with alternate arrangements and all critical payments and commitments will be honored. The steel giant argued.https: //

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