Ukraine nationalizes titanium assets of Russian oligarch worth over $54 million

6 February, 07:15 PM
Demurinskaya GZK (Photo:БЕБ)

Demurinskaya GZK (Photo:БЕБ)

The Appeals Chamber of Ukraine’s High Anti-Corruption Court has approved the confiscation of all assets of Demurynskyi Mining and Processing Plant LLC, owned by Russian citizen Mikhail Shelkov, in favor of the state, the Economic Security Bureausaid on Feb. 6.

The Economic Security Bureau, together with Ukraine’s SBU security service, also expropriated the company's movable and immovable property and cash on accounts worth UAH 14.4 million ($392,000).

Detectives from the Economic Security Bureau and SBU provided the necessary evidence and materials to the Office of the Prosecutor General and the Department of Sanctions Policy of the Ministry of Justice of Ukraine for the seizures to be made, the agencies said.

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On Feb. 3, the High Anti-Corruption Court Appeals Chamber greenlighted the confiscation of the Demurynskyi plant of Russian oligarch and former Rostec top manager Mikhail Shelkov.

In the run-up to Russia's invasion of Ukraine, Russian titanium producer VSMPO-Avisma sold its shares in the Demurynskyi plant. According to NV Business, they could have been bought by businessmen associated with the Ukrainian state-owned UMCC-Titanium.

The share transfer took place on Feb. 20, 2022. The sole shareholder of Demurynskyi Mining and Processing Plant is Limpieza Limited (Cyprus). Its owners were VSMPO-Avisma Corporation (75%) and Bolatico Limited (Cyprus, 25%). Bolatico Limited concentrated 100% of the shares in Limpieza Limited.

Earlier, the High Anti-Corruption Court partially satisfied the claim of the Ministry of Justice to seize the Ukrainian assets of Russian billionaire Mikhail Shelkov, the main beneficiary of the Russian VSMPO-Avisma Corporation, the world's largest titanium producer.

Mikhail Shelkov previously headed the investment division of the Russian state-owned corporation Rostec. Together with his partners, Shelkov holds a controlling stake in the company.

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