Ukrainian oligarch Dmitry Firtash closed two enterprises of the chemical holding Ostchem in Ukraine. He explained his decision by “systemic and unprecedented pressure” from the Ukrainian authorities

Ukrainian entrepreneur Dmitry Firtash (Photo: TASS)

We are talking about the closure of two enterprises of the Ostchem holding in Ukraine - Cherkasy PJSC Azot and PJSC Rivneazot. “Due to systemic and unprecedented pressure on the business of Ostchem, the chemical holding of the group [owned by Dmitry Firtash holding Group DF], from the deputies of the Popular Front and their representatives in power, Group DF announces the closure of the Ostchem enterprises - the Cherkassy PJSC Azot and PJSC Rivneazot,” says Group DF in a statement published on the holding’s website on Thursday.

The report notes that Group DF businesses have to work “both in the context of a military conflict in the Donbass and a large-scale political campaign against the group and its owner.” In May last year, the holding was forced to stop two enterprises in the ATO zone - Concern Stirol and Severodonetsk Azot Association - for security reasons. After this, the Ukrainian agro-industrial complex was supplied with mineral fertilizers by the two Ostchem chemical enterprises remaining in the country - Cherkasy Azot and Rivneazot.

“Further deliberate fabrication of a number of criminal cases against officials of Ostchem enterprises and against the plants themselves, as well as the completely illegal seizure of the main raw material from the plants - gas - deprived these enterprises of the opportunity to work,” the report notes. The holding regards the case against the management of Ostchem as persecution for political reasons and another attempt to put pressure on business and justice.

Last week, the Main Investigation Department of the Ministry of Internal Affairs of Ukraine sent a subpoena for questioning and investigative actions to oligarch Dmitry Firtash. According to the Minister of Internal Affairs of Ukraine Arsen Avakov, the interrogation is related to the investigation of a criminal case into corruption schemes of the Ostchem group of chemical enterprises and the “theft of state property.” Avakov noted that the Ministry of Internal Affairs of Ukraine invited the US FBI to participate in joint investigative actions in this case.

On April 2, criminal proceedings were opened in Ukraine for abuse of official position and theft of budget funds by officials of the Ostchem group of companies. According to the Ukrainian Ministry of Internal Affairs, the actions of officials of the enterprises included in the group led to the theft of more than 2.3 billion hryvnia from the state.

Firtash was arrested in Vienna in March 2014 at the request of the FBI. According to the indictment of the US Department of Justice, the businessman is one of the suspects in bribing Indian officials in order to gain access to titanium deposits. The court later released him on a record bail of €125 million.

On April 29, the Kiev court granted the request of the Main Investigation Department of the Ministry of Internal Affairs of Ukraine to seize almost 500 million cubic meters. m of natural gas from the Ostchem group of companies. On April 30, Austria refused to extradite Firtash to the United States. After this, he announced his intention to return to Ukraine.

Dmitry Firtash is the owner of the international holding company Group of Dmitry Firtash (Group DF), which includes assets in the chemical industry, energy and real estate. Ukrainian Forbes estimates his fortune at $270 million. The Ostchem holding unites the nitrogen chemical enterprises of Group DF. The main activity of the Ostchem group is the production of nitrogen fertilizers: ammonium nitrate, urea, ammonia, lime-ammonium nitrate and urea-ammonium mixture, as indicated on the holding’s website. Rivneazot is the only producer of mineral fertilizers and adipic acid in the western regions of Ukraine. Cherkasy Azot is one of the largest Ukrainian chemical enterprises in Ukraine, specializing in the production of mineral nitrogen fertilizers.

Firtash closed two enterprises due to “unprecedented pressure” from the authorities