Ukraine seizes stakes in strategic companies under wartime laws

2 weeks ago 23

[1/2] A wide presumption of an vigor institution Ukrnafta successful Kyiv, Ukraine November 7, 2022. REUTERS/Sergei Karazy

KYIV, Nov 7 (Reuters) - Ukraine said connected Monday it had invoked wartime laws to instrumentality power of stakes successful a apical engine-maker and 4 different strategical companies from immoderate of the country's richest men.

It was the archetypal clip the authorities had utilized martial instrumentality for specified a determination since Russia invaded Ukraine successful February and besides its astir melodramatic wartime involution into large business, touching companies linked to tycoons whose governmental powerfulness President Volodymyr Zelenskiy's squad has agelong sought to curb.

The determination was taken astatine a gathering of apical information officials chaired by Zelenskiy connected Saturday and went into unit connected Sunday, placing the privately held stakes nether the power of the Defence Ministry, 3 apical officials said.

"At the extremity of the subject authorities (martial law)... the assets tin beryllium returned to their owners oregon appropriately compensated astatine their value," Security Council Secretary Oleksiy Danilov told a quality conference.

The companies included motor shaper Motor Sich, vigor companies Ukrnafta and Ukrtatnafta, conveyance shaper AvtoKrAZ and transformer shaper Zaporizhtransformator.

None of the 5 companies offered immoderate contiguous comment.

The companies are partially owned by the authorities and are associated with almighty businessmen including billionaires Ihor Kolomoisky and Kostiantyn Zhevaho, arsenic good arsenic businessman Vyacheslav Bohuslayev, who was detained successful October connected suspicion of collaborating with Russia.

"This is not nationalisation... this is simply a nonstop taking implicit of assets during wartime. These are wholly antithetic ineligible forms," Defence Minister Oleskii Reznikov said.

The determination was announced astatine a associated quality league of Danilov, Reznikov and Prime Minister Denys Shmyhal, an unusually high-profile sheet that signalled the sensitivity of the move.

The officials did not elaborate connected the size of the stakes that had been taken over,

Asked if different companies' shares could beryllium taken over, Reznikov declined to remark aft the quality conference.

At the quality conference, Danilov answered: "It depends however overmuch power they person connected the authorities of our country".

Reporting by Max Hunder, Pavel Polityuk and Dan Peleschuk; Writing by Tom Balmforth; editing by Timothy Heritage

Our Standards: The Thomson Reuters Trust Principles.

Read Entire Article