DPR decided to take the plant away from Mechel

Mechel has received an order to introduce temporary administration at one of its enterprises, the Donetsk Electrometallurgical Plant (DEMP). Under the order is the signature of the head of the DPR Alexander Zakharchenko. According to his decision, a new enterprise should be created on the basis of the plant, to which the property of DEMZ will be transferred.

“According to the company's preliminary assessment, there is a risk for Mechel to lose control for an indefinite period over any future production and commercial activities of DEMZ,” Mechel said in a statement.

Currently, Mechel Company is carrying out a legal examination of the current situation and, if necessary, will take all measures to protect its rights and interests in accordance with the procedure established by law.

Mechel

• Since December 2012, production at the Donetsk Electrometallurgical Plant has been stopped. Mechel explained this decision by unfavorable market conditions.
• After the start of the conflict in eastern Ukraine, local entrepreneurs began to complain about extortion and other illegal actions by representatives of the DPR and LPR.