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Ukraine takes control of five strategic companies, including Ukrnafta and Motor Sich

Ukraine takes control of five strategic companies, including Ukrnafta and Motor Sich

The shares of five Ukrainian enterprises of strategic importance, including the largest oil-mining company Ukrnafta and the manufacturer of aviation engines Motor Sich, have been taken over by the state, said Oleksiy Danilov, secretary of the National Security and Defense Council of Ukraine.

The companies will be managed by the Ministry of Defense, and after the end of martial law, the assets may be returned to their owners or compensation will be paid for them, described Oleksiy Danilov. He added that the decision was made at a secret meeting of the highest Ukrainian authorities on Saturday and formally entered into force on Sunday.

Conference of Oleksija Reznikov, Oleksiy Danilov and Denys ShmyhalReuters

“This is not nationalization, it is a takeover of assets during martial law,” explained Defense Minister Oleksya Reznikov. When asked by journalists whether the state would take control of other companies, he replied that it would depend on the state of Ukrainian defense. However, he declined to indicate the companies that could be affected.

The basis of the regulations on taking over companies in conditions of martial law or a state of emergency

The Ukrainska Pravda website reported that the decision was formally made by the National Securities and Exchange Commission (NKCPFR), which ordered the forced transfer to the state of the ownership of private shares in Ukrnafta, Ukrtatnafta, Motor Sicz, AwtoKrAZ and Zaporiżtransformator.

The basis for the decision of the NKCPFR were, in turn, the law on compulsory takeover of companies under martial law or a state of emergency, passed in September, and orders issued by President Volodymyr Zelensky, who is the Supreme Commander of the Armed Forces. Ukraine – added Jarosław Żełezniak, MP of the Supreme Council in a message on Telegram.

42 percent of Ukrnafta’s shares are owned by subsidiaries of the oligarch Ihor Kolomoysky, who is considered the patron of Volodymyr Zelensky. Ukrtatnafta is the owner of the Kremenchuk refinery, among others, which stopped production in spring when the plant was damaged in Russian air raids. The company is mostly owned by Kolomoyskyi and his partner Hennady Boholubov.

Ukrnafta in KievReuters

Until recently, he was the owner of the Motor Sicz plant located in Zaporizhia Vyacheslav Bohuslaevwho was arrested in October on charges of treason. He is suspected of cooperating with and assisting the Russian occupation forces.

The truck-producing company AwtoKrAZ from Kremenchuk belongs to the oligarch Kostiantyn Zakwaha, who fled the country after the Russian attack on February 24, writes Ukrainska Pravda.

Main photo source: R. Danyliuk / Shutterstock.com

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