Scare away investors from Ukraine. Searches SBU at ArcelorMittal

Отпугивают инвесторов от Украины. Обыски СБУ на АрселорМиттал

The company, which is the largest investor, are suspected of ecocide. Such cases in the new history there were two and both are associated with military operations.

The security service of Ukraine suspects the largest mining and metallurgical enterprise of Ukraine – plant ArcelorMittal Kryvyi Rih, in violation of environmental rules. The company argued on “persistent searches” the last two weeks.

Investigations are proceeding at unprecedented criminal charges – Ecocide. In the company deny the accusations and say the “pressure on business”, and experts fear the departure of foreign investors. Корреспондент.net tells details.

SBU came after accusations Zelensky

Last week the security Service of Ukraine once again called for the plant ArcelorMittal Kryvyi Rih. On 6 September, the staff of SBU came to check sinter plant of production. They had been at the company three days earlier.

Inspections began shortly after the visit of President Vladimir Zelensky July 12, in his native Krivoy Rog, where a meeting with the leadership of the company, he asked what measures had been taken to improve the environmental situation in the region. The President also called for “financial to apologize to people who are sick”.

A representative of ArcelorMittal said then that the steps are taken and in the next five years there are plans for significant investments in production, which will also contribute to environmental protection.

The company also said that the meeting with Zelensky, the purpose of which was to discuss the problems of Krivoy Rog, the environment Department of the city showed a video about the harmful emissions only from the company ArcelorMittal, which prepared journalists TRK Rudana owned by Kriviy Rih city Rada, headed by Yuriy Vilkul.

Before the presidents spoke a number of public organizations including the citizens ‘ environmental platform, coordinated by ecologist Alexander Sokalski, who previously was an assistant close to Vilkul Deputy Sergey Glazunov.

Platform Sokalskogo was part of the city Commission together with the Office of the environment, which, on July 2 was supposed to come with a check for ArcelorMittal. This day the test has failed because the members of the Commission refused to grant permits.

In this regard, as they say in ArcelorMittal, the Commission made inquiry about the obstruction of access to environmental information.

The inspectors made to the factory the next morning, the company says. While ArcelorMittal said that the certificate of audit on the four pages were ready in less than an hour.

Few days later, on 17 July, the SBU reported about opening of criminal proceedings for environmental pollution under article 441 of the Criminal code of Ukraine (ecocide). Punishment – from 8 till 15 years of prison.

On the morning of 20 July, ArcelorMittal Kryvyi Rih was searched based on the definition of Babushkinsky district court of the Dnieper.



As told the acting CEO of ArcelorMittal Kryvyi Rih Alexander Ivanov, the staff of SBU came with a search warrant “in the modern, newly built facility – the third machine of continuous casting”.

Were seized copies of all documents for this equipment, as well as the machine itself. However, the object remained in place, because it is impossible to remove. Later, the head of SBU Ivan Bakanov said they didn’t arrested.

Two days later, on behalf Zelensky was formed a working group to monitor the environmental activities of ArcelorMittal, which also included Skakalsky.


Found radiation on non-running car

July 22, at a briefing in Kiev the head investigative Department of SBU in the Dnepropetrovsk area Igor Yong said that the test for ArcelorMittal was linked with the received information about the “violations of radiation safety requirements during commissioning and start-up works on the machine continuous casting”.

According to the register of judgments, the basis of criminal proceedings is the report of the LLC OHI it is, by definition, the chemical composition and assess the degree of air pollution in Krivoy Rog, namely, identify and inventory the main sources of emissions of ArcelorMittal Kryvyi Rih from 2018.

Thus, the focus of the NIDS it is “activity in the field of architecture.” In the preparation of the report was attended by former co-founder of Nicholas Sawicki and five builders, one archivist, and three medic.

NIDS it in April 2018 has won the e-auction which held by the Office of ecology of the municipality of Krivoy Rog. On the procurement website Prozorro is that the cost of services “to identify the chemical composition and degree of contamination of the atmosphere of Krivoy Rog” is estimated at more than 2.3 million UAH.

Ena stated that during measurements on 20 July were detected the radiation, which is five times higher than normal for work.

“4.4 microsieverts per hour. The source of ionizing radiation was “abclean” normal metal to the background of the about came into the norm. Everything was recorded during the proceedings. In addition, employees prevented the inspection of the equipment,” said Ena.

As stated in ArcelorMittal, the radiation level was too high due to the fact that during the measurements took off the protective cover of the radiation source. The company also added that the equipment on which the SBU have any questions, new and not yet commissioned.

“With the lid closed, the radiation levels ranged from 1.1 to 1.3 microsieverts per hour is within normal limits,” – said the head of the division of radiation control plant Alexander Mazur.

Bakanov, in turn, said that the SBU accuses the company’s management to careless use of investment businessman Lakshmi Mittal.

“I’m sure Lakshmi Mittal, who is a powerful international investor trying to implement this investment… not planning to do anything wrong. But the management, who is working in the enterprise, careless attitude to his duties. And therefore should be appropriately at least disciplinary punished,” – said Bakanov.

In ArcelorMittal claimed that the security forces of the security Service come to them daily.

“In the last two weeks of the SBU daily and methodically checks ArcelorMittal Kryvyi Rih. The demonstrations around the clock, changing only the group of investigators,” – said in a statement.


Investors are concerned about the actions of the SBU

The situation around the plant with the world enmeshed in the European Union. On 26 July, the EU Ambassador to Ukraine Hugues Mingarelli in an interview European truth said that the raids SBU commercial companies harm the country’s investment attractiveness.

“Of course, there is the need to fight corruption, including in the steel industry. But is the situation in ArcelorMittal – the worst in Ukraine? I’m not an expert and I have no answer, but when I was in Mariupol and held the finger on the glass, the finger was black,” – he said, noting that diplomats were surprised by such actions of the SBU.

The President of the American chamber of Commerce in Ukraine Andy Hunder also criticized searches for Arselormitall Krivoy Rog, noting that foreign investors “would be concerned about selective justice”.

“Disappointing news about the main Ukrainian investor has ArcelorMittal, which has invested more than nine billion dollars to Ukraine. Investors will be concerned about selective justice. Ukraine sends the wrong message to the investment community,” wrote gunder on Twitter.

Discouraging news from Ukraine’s top investor #that ArcelorMittal has invested over $9billion in #Ukraine. Investors will be concerned about selective justice. Ukraine sending the wrong message to the investment community

— Andy Hunter (@AndyHunder) July 21, 2019

About the risks scare investors also said economic expert, head of the expert analytical Council of the Ukrainian analytical center Boris Kushniruk.

He also noted that the SBU has no authority to investigate abuses in the field of environmental pollution.

“When we are talking about the largest in the history of Ukraine the investor and the company, which is a huge taxpayer that provides employment to tens of thousands of people, if there’s no emergency, but if that’s the situation that needs solving, then we must go about the work of the Executive and local authorities with the management company. What we saw has nothing to do with law and logic,” he was quoted by Radio Liberty.

The expert noted that, from the point of view of large investors, the actions of the SBU “can only deter from Ukraine”.

“Lakshmi Mittal did not create this enterprise. He bought it. Bought with a great environmental problems that have accumulated over decades. To resolve them in a year or two, even ten years is impossible,” – said Kushniruk.

Investment banker Sergey Fursa, explains why foreign investors refuse from the Ukraine.

“It’s no secret that the rule of law is the main issue that attract investors, answering the question of what is holding them back from investing. What is the problem with the rule of law? It is the courts and security forces”, – he wrote on his page in Facebook.

According to Fursa, SBU “instead to catch spies – nightmare of entrepreneurs”.

“And now we have seen how the SBU, the main problem of the business, doing everything that Ukraine was not going to go foreign investment. Problems Kryvorizhstal (formerly Arcelor Mittal, ed.), the largest foreign investor in Ukraine send a clear signal to all who are thinking to invest in Ukraine”, – wrote the expert.


Two cases of ecocide to the whole world

The Criminal code of Ukraine due to ecocide as the “mass destruction of flora or fauna, poisoning of atmosphere or water resources, as well as other actions that may lead to environmental disaster”.

Radio Svoboda also quotes the words of head of the regional organization all-Ukrainian Union Freedom of labour Igor Tokovenko, who claims that one of his colleagues appealed to the SBU, a statement about the environmental problems of other large enterprises of Krivoy Rog, but the case is not opened.

He also notes that ecocide is the only environmental crime under investigation, the SBU, not the police.

“If the SBU, valid for ArcelorMittal as pollutant № 1 in Krivoy Rog, we must also act in relation to Northern Mining – pollutant No. 3 in the city and No. 1 in Ternovskaya district (Krivoy Rog – ed.). But nothing we do not see”, – he said.

In modern history there are two cases of ecocide. One of them, the most serious is the use by the U.S. army during the Vietnam war chemical agents, which resulted in numerous civilian casualties and severe environmental consequences.

The second largest share of ecocide is considered to be undermining Iraqi troops 1.2 thousand oil wells, several oil pipelines, oil storage tanks and the sinking of Kuwaiti tankers during the Gulf war.

Any fires that did not have a scale unprecedented in history. Every day, burn about one million tons of oil were released into the atmosphere, 50 thousand tons of sulfur dioxide, 100 thousand tons of soot and 80 tons of carbon dioxide. Ecosystems of the Bay and coastal areas have suffered significant damage, there was a mass death of birds.


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