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Thursday, March 22, 2018

The largest enterprises of Donbass will give the money to the unrecognized republics

DNR and LC announced the transfer of Ukrainian factories under his control – this will allow you to pay taxes to the republics of the new Russia, not Kiev. The government of Ukraine, these plans are called the bluff, and one of the owners, the billionaire Vadim Novinsky in an interview with the newspaper OPINION stated that such a decision will only help the radicals who had organized a blockade of Donbas. Whether so it actually?

On Monday, the leaders of the breakaway Donetsk and Lugansk national republics Alexander Zakharchenko and Igor Plotnitsky has created a headquarters to control the transfer of enterprises of the Ukrainian jurisdiction under external management.

“No nationalization and no plans. This refers to the transition of these businesses into administration”

“I issued a decree on the establishment of the headquarters, which will regulate the rights of workers”,said Zakharchenko, noting that due to Kiev organized blockade DNR has stopped yenakiieve iron and steel works and a number of other enterprises. “These companies need to start to think about people,”he said, Zakharchenko RIA “Novosti”. All enterprises that are in the NPT, will go in the legal field since March 1, the DNR, Zakharchenko added. “This applies to all companiesand stadiums, and hotels,”he said.

On Monday morning the heads of both republics demanded from Kiev to stop the blockade of Donbass by March 1. Otherwise, they threatened to stop supply of coal to Kiev, as well as to introduce external management at the enterprises of Ukrainian jurisdiction. Zakharchenko and Plotnitsky also said that the country will rebuild all the production processes and to Orient them to the Russian market and other countries. Zakharchenko suggested that nationalized enterprises will be able to fill up to 70% of the budget of the DND and that a reorientation on new markets will take “at least a month or two”.

In turn, the Ukrainian government said that Zakharchenko and Carpentry are bluffing and the organizers of the blockade, the news is met with joy. “The panic of the occupation “authority”is the best proof that the blockade painfully beats on pockets of invaders. The worse the occupierthe better for Ukraine”,cheerfully reported the headquarters in your Facebook.

“Grist to the mill of the Ukrainian radicals”

Representatives of the Ukrainian authorities understandably displeased with the developments.

One of those whom the decision Zakharchenko and Carpentry asco-owner of Metinvest holding, member of Parliament, billionaire Vadim Novinsky. In an interview with the newspaper LOOK the billionaire has expressed bewilderment in connection with the DPR and LPR plans to translate enterprise “external control”.

“I don’t understand what people want on the temporarily uncontrolled territories of Ukraine make that decision? They’ve got that in Donetsk and Lugansk have a professional team of managers, able to ensure effective work of the enterprises? Will this external control better people working for them?” surprised businessman. According to Novinsky, now, in terms of work stoppage and blockade, the owners still provide there wage. He vouches: still the current state of Affairs, no social explosion in enterprises, at least part of the holding “Metinvest”, will not.

“People go to work because, in addition to primary production, there is also under renovation, there are many other cases. Personally, I’m not doing business, focusing on the work in Parliament, but all my assets on the territory controlled by Ukraine and on the temporarily uncontrolled territory are in the hands of professional managers”,Novinsky told.

The MP believes that the people who started enterprises external management, actually pour water on the hands of Ukrainian radicals staged a blockade of Donbass. “They then can legitimately argue that they have achieved their goals, and blocked economic ties between Donbas and the rest of Ukraine. Don’t need to help these criminals to justify their actions”,Novinsky called.

In other words, if we follow this logic, radical Ukrainian nationalists and supporters of the republics of the new Russia are on the same side of the barricades.

“In Russia, and so a surplus of coal”

In business circles of LNR is also not sure that the company DND and LNR will be able to work effectively after the transfer under external control. “For large enterprises it is impossible to work in the “grey” economic zone. Though, because there is such an elementary thing as the international certification of ISO, and the company is impossible to certify in a “grey zone”. Donetsk and Lugansk enterprises without an international certificate will not be able to work with Russia”,said in an interview to the newspaper VIEW, the businessman from Lugansk Andrey Underweight.

In addition, Underweight doubts that companies will be able to enter the markets of neighboring Russia. “In Russia, and so a surplus of coal. In one of the Rostov region there are about ten operating mines and four under construction. Throw all this coal on the Russian market is unprofitable. The export of coal via the southern ports for sale on world markets under the Russian brands, perhaps, is theoretically possible. But I personally can not imagine how this coal will receive a certificate of origin on the international market”,he explained.

“The industry of Donbass, and in particular the coal industry – it is, sorry, not cannery. It is a huge business, which, despite its scale and inertia, is very vulnerable and does not tolerate any sudden movements. To “push” the industry very easily. In the case that the conflict between Akhmetov and the authorities of the republics will continue, and the businessman will simply take from their companies of 50 top-managers and get them under the Mariupol on his famous campjust relax for a couple of months, I’m sure it just paralyzes the whole chain”,said the businessman.

In addition, the republics had the opportunity to prove the effectiveness of nationalization, for example, state-owned enterprises, he said. “I’m not talking about some electroplasma industries or enterprises of municipal water supply, namely the industries. And this experiment was not the best. And to take control of such companies as DTEK rovenkyanthracite or, for example, “Sverdlovskoye” without consulting the point of view of international jurisdiction, severing them from the production chain, including within the same holding “Metinvest”, and to link their operations with those of similar Russian companiesit’s not one decade. About how much fun it will be, not even worth talking about”,noted the Underweight.

The businessman also fears that nationalization will lead to the need for employment 5060 thousand workers who risk to be on the street.

“Redirect your taxes to the budgets of the republics”

However, Russian economists hope that Donbass will be able to enter into the Russian market chains.

“No nationalization and no plans. This refers to the transition of these enterprises under external management. This will avoid claims from the owners, but at the same time, the external Manager will decide where to pay taxes,explained the newspaper VIEW President of the Center for strategic communications Dmitry Abzalov.This did not violate the Minsk agreement. Let me remind you, the same subsidiaries owned by Rinat Akhmetov Metinvest pay taxes to Ukraine. External control will help redirect your taxes to the budgets of the republics.”

Abzalov recalled that earlier, Ukraine supplied the demand in the energy sector anthracite. Ukraine Donetsk anthracite required energy on multiple TES. The second supply chain has been associated with metallurgy. From the territory of Ukraine, controlled by Kiev, in the people’s Republic of supplied coking coal used in metallurgy. Coke was provided as steel mills in the LC and the DNI, for example, and a metallurgical plant in Mariupol. On the territory of Ukraine of coke is very small.

In Russia the main part of the anthracite is concentrated in the Kuzbass, said Abzalov. “Part of this coal can be purchased in the Donbas, it will reduce transport costs for the southern regions of Russia. In addition, the coal in the breakaway republics significantly cheaper. Enterprises of Kuzbass, in the future, may increase exports to Japan or to South-East Asia. Russia will supply directly to the territory of the republics coke and metallurgical products produced in the Donbass, will be exported to Russia. As a result, the Republic will receive a large income in your budget and save jobs. And Ukraine will be deprived of anthracite, to find alternative sources of supply when this is impossible,”says a Russian expert. Akhmetov is now likely to be forced to stop their plants in Mariupol.

The power of LC has already published a sample list of companies, which now plans to introduce external management: PJSC “Alchevsk metallurgical plant”, including PJSC “Alchevskkoks”, JSC DTEK Sverdlovanthracite, LLC, DTEK rovenkyanthracite, PJSC “Krasnodonugol”, JSC “akvaservis”, PJSC “Ecoenergy”, krasnodonsky Wind Park, Wind Park Lutugino.

As for DNR, in addition to the Yenakievo iron and steel, which has already said Zakharchenko, Ukrainian billionaire Rinat Akhmetov there are Makiivka iron and steel and Khartsyzsk pipe plant, Zuevskaya thermal power plant, mine “Komsomolets of Donbass”. They, as expected, and may be subject to nationalization.

Earlier, the Ukrainian journalist Sergey Golovnev has published a copy of a document with a list of 18 companies, however, without specifying its origin. “This plan to create a “prospective holding company”, Latenergo” not controlled by the territory of Ukraine,quotes the portal Golovneva “Ukrainai”. Besides those already mentioned, here also referred to as: Dokuchayevsk flux and dolomite plant, Komsomolsky mine (unites about 100 companies), Donetskoblenergo, Donetsk and yasinovatskiy coke and steel works.


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