ArcelorMittal confirms freezing of its accounts in Ukraine

Expresses outraged

ArcelorMittal has confirmed that a court-ordered a freeze of the Ukrainian bank accounts of its subsidiary in Ukraine after the steel giant was accused of tax evasion.

ArcelorMittal accounts were frozen on January 4, 2022, after the court ruled in favor of a request from the Ukrainian Prosecutor-General’s Office.

The story which was first published by the Financial Times, and lifted by the New Dawn in its Monday, January 10, edition, indicated that the bank accounts of ArcelorMittal in Ukraine were frozen by the court after a senior executive at the company was accused of tax evasion.

ArcelorMittal with its subsidiary ArcelorMittal Liberia is currently seeking an extension of its Mineral Development Contract here with an amended MDA before the Liberian legislature for ratification.

Though there is currently no accusation against the company over its tax dealing or an investigation, there has been a series of opposition against the extension of the company’s MDA with prominent sons of the host counties kicking against the new deal.

The Reuters news agency reported in 2019, that the Ukrainian authorities were conducting a tax audit of the company’s operation.

The funds were blocked by the Prosecutor General’s Office together with the Shevchenkivskyi Court of Kyiv. 

In a statement forwarded to this paper by ArcelorMittal Liberia on Monday, January 10, the company stated that a representative of the Prosecutor General’s Office appealed to Ukrainian banks to comply with the court’s decision on November 30, 2021, to seize the company’s accounts.

It said the dispute concerns the approach to calculating rent. On November 4, 2021, the District Administrative Court upheld the position of ArcelorMittal Kryvyi Rih and dismissed an administrative lawsuit filed against the company by the State Tax Service. ArcelorMittal explained that an appeal has been filed with the tax authorities, and the company is preparing to defend its position in the Administrative Court of Appeal.

It said despite the fact that the administrative court ruled in favor of ArcelorMittal Kryvyi Rih, on November 17 the Prosecutor General’s Office and the Security Service of Ukraine opened a criminal case against one of the leaders of ArcelorMittal Kryvyi Rih. 

“The company considers these accusations baseless and a clear example of political pressure on the largest foreign investor. However, these far-fetched criminal charges are leveled against an individual, not a company. Currently, no civil proceedings are underway against ArcelorMittal Kryvyi Rih, so there are no legal grounds to block the company’s accounts,” ArcelorMittal narrated.

Artem Filipiev, Deputy General Director for Administrative Affairs of ArcelorMittal Kryvyi Rih: – The rule of law, as a principle, seems to be completely destroyed in Ukraine. After the district court ruled in favor of ArcelorMittal, and while the administrative lawsuit of taxpayers is pending, the Prosecutor General’s Office took aggressive measures against the company, contrary to the letter and spirit of the law. This is unacceptable and unheard of in any reasonable jurisdiction around the world. Since the start of the new year, our company has received another eloquent confirmation that the state is hostile to foreign investors. It is outrageous that law enforcement agencies are ready to paralyze the work of the country’s largest mining and metallurgical enterprise and endanger more than 20,000 people who do not receive their salaries on time. These allegations and the seizure of accounts are unfounded, and we will defend the legitimate interests of our business.

The company stated that as a global business, ArcelorMittal is committed to operating in line with taxation rules and regulations everywhere it operates. “We have adopted this approach in Ukraine, and paid all taxes in line with legislation, making a significant contribution to the Ukrainian economy in the process.

As Ukraine’s largest foreign direct investor, we need the certainty of law to facilitate a stable investment and operating environment. ArcelorMittal considers this action (the freezing of our bank accounts) as unlawful and is taking the appropriate legal recourse to defend its position in the appropriate courts.

There is no risk to business continuity and the situation is under control. Salaries have been paid in time with alternative arrangements and all critical payments and commitments will be met.” The steel giant argued.https://thenewdawnliberia.com/arcelormittal-bank-account-in-ukraine-frozen-over-tax-evasion/