Kyiv.Ukraine.Ukraine Gate – November 7,2021- Privatizing OGHC (United Mining and Chemicals Company) is the only possible way to save Europe’s largest titanium and zircon ore company from corruption.
” Privatization is the only possible way to save the industrial giant – the United Mining and Chemical Company, which is in the” slavery “of corruption, which does not allow to properly fulfill international obligations. In recent decades, the company has been under the influence of various political groups that have used the company in their business interests, “said the deputy.
According to him, OGHC, which includes the Vilnohirsk Mining and Metallurgical Plant and the Irshansky Mining and Processing Plant, is a very valuable asset for Ukraine, as the company is not only one of the world’s largest producers of titanium raw materials, but also has a location that allows fast delivery of products to the EU and CIS countries.
However, stable operations of the company are constantly hindered by ties with politicians and financial groups who do not want to “let go” of the company and delay privatization in all possible ways, Ustenko said.
“This is a story in which many Ukrainian companies that were of strategic importance to world industry have fallen. The head was appointed “his man”, who then sold raw materials for pennies to individual companies. Thus, the budget did not meet the significant funds that should go to the development and modernization of production, “- said the deputy.
In particular, according to him, it is a question of constant interference of corrupt power structures in activity of OGKH, and also blocking of its work. For example, only in October were several trains with ilmenite concentrate seized, which the American company was to receive after winning the tender in advance and paying the required amount of prepayment, the deputy said.
As a result, as Ustenko stressed, such cases have a negative impact on the company’s image and its financial capacity, which is why partners and potential investors have some concerns about the feasibility of cooperation.
“Today, the State Property Fund is already working to ensure that the auction in December was not disrupted. We are also working to ensure that privatization is successful, “Ustenko added.
OGHC was established in 2014 by combining the capacities of the Vilnohirsk Mining and Metallurgical Plant in the Dnipropetrovsk region and the Irshansky Mining and Processing Plant in the Zhytomyr region.
Since 2019 it has been managed by the State Property Fund of Ukraine. For 8 months of 2021, the company’s revenue amounted to more than 2.68 billion UAH, which is 35.8% higher than last year. Gross profit amounted to UAH 839 million, which is 37.3% more than in 2020.
The OGHC privatization auction was postponed to December .
