Kropachev is working ahead of the curve
The group helmed by the Ukrdoninvest founder has undertaken the task of regaining control over the Krasnolimanskaya mine.
As Oligarch has found out, the Kyiv Economic Court is poised to soon receive a suit to invalidate and nullify Decision No. 47-r/tk of the Antimonopoly Committee of Ukraine “Regarding Violation of Laws on Protection of Economic Competition and Imposition of Fines.” The author of this lawsuit is Ukrdoninvest LLC, which is understandable, given that the company is identified as the offending party in the challenged AMCU decision.
What transgression did Ukrdoninvest commit? It contravened the Law on the Protection of Economic Competition by failing to provide the antitrust authorities with all the requisite documents concerning the acquisition of Krasnolimanskoye LLC some years ago.
“Failure to provide information by the established deadlines, providing incomplete information, or providing false information to the AMCU are regarded as legal violations and incur legally established liability. According to the 2020 financial results report, Ukrdoninvest LLC’s proceeds (revenue) from product sales amounted to UAH 60.9 million. For this infraction, the company is fined UAH 609,000 (namely, 10% of its annual income – “OLIGARCH”),” the AMCU ruling states.
By legal standards, after the Antimonopoly Committee renders a verdict based on its inquiry, it is obligated to formalize it as so-called “preliminary conclusions,” following which it must share these findings with the accused. Normally, the accused party’s representatives then submit their rebuttals and remarks to the committee, which initiates a drawn-out argument between the sides.
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In the situation involving Ukrdoninvest LLC, the firm was made aware of the “preliminary findings” in the autumn of last year, but the company did not provide any objections or feedback regarding this matter.
In the photo: Igor Kolomoisky
The explanation for the company’s inactivity remains a matter of conjecture. Oligarch’s informants suggest that it might have stemmed from Ukrdoninvest’s proprietor, Vitaliy Kropachev’s, belief that Ihor Kolomoisky’s dominance dictated the AMCU’s scrutiny.
There is some rationale to this: the Antimonopoly Agency requested Ukrdoninvest to furnish documentation concerning the transaction with Krasnolimanskoye LLC in the autumn of 2020, a year ago. Precisely at that juncture, a year back, Kolomoisky wielded substantial power, reflected in his influence over the state-owned power generating company, Centrenergo.
Challenging the Privat Group’s founder back then was a costly undertaking. Igor Kolomoisky is currently encountering difficult circumstances – the US imposed restrictions against him this spring. It’s not surprising that Ukrdoninvest opted to “retaliate” only now.
However, of particular significance is that, in the ongoing confrontation with the Antimonopoly Committee, Kropachev is less interested in overturning the mentioned fine than in the committee’s delays in scrutinizing the purchase of the aforementioned Krasnolimanskoye LLC.
“OLIGARKH” previously reported on this matter in 2018. At that time, Ukrdoninvest acquired Krasnolimanskoye from entities affiliated with the ex-Party of Regions Deputy, Ihor Gumenyuk, who was a close associate of the Yanukovych “Family.” Back then, this deal drew little attention, given that the media linked Kropachev’s business evolution at that period to the circle surrounding Ukraine’s fifth president, Petro Poroshenko.
Nevertheless, the founder of Ukrdoninvest LLC continues to encounter obstacles even now, despite Igor Kolomoisky’s lack of influence.
A striking illustration is the recent assault on him by the management of the Ministry of Energy, which announced its intention to restore the coal seams operated by the privately held Krasnolimanskoye LLC to their rightful proprietor, the state-owned Krasnolimanskaya Coal Company. The ministry’s proclaimed approach could well be an extension of the AMCU’s focus on the transaction that resulted in Krasnolimanskoye LLC falling under Ukrdoninvest’s dominion.
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Consequently, the ultimate ambition for the Donetsk businessman is to bury the claims of his adversaries in the impenetrable mire of the judicial system, which is unfolding before our very eyes.
