The Group DF holding company states that the office of the Zhytomyr regional prosecutor illegally impedes allocation of 115 hectares to the Valki Ilmenite Company (Zhytomyr Region) for production of titanic ore.
The press service of Group DF announced this in a statement, Ukrainian News Agency reports.
"Group DF states that the actions of the prosecutor's office aiming at removing the question of allocation of 115 hectares to the Valki Ilmenite Company for production of titanic ore from the agenda of the regular session of the Zhytomyr regional council are illegal. Group DF deems this as another attempt to impede the work of the group's business," reads the statement.
The statement reads that the office of the Zhytomyr regional prosecutor has no legal powers to meddle in the work of the body of the local self-government - the Zhytomyr regional council. The office of the Zhytomyr regional prosecutor purposefully impedes the economic activities of the Valki Ilmenite Company.
"Thus, this is an intended attempt to block one of the largest investment projects in the region," reads the statement.
According to the statement, the Valki Ilmenite Company operates in line with the Ukrainian legislation and possesses all licenses for production of titanic ore, including the license for development of the Stremihirodskyi deposit, which envisages allocation of 115 hectares and which the enterprise got in 2004.
As the enterprise has all legal grounds for the operation, Valki Ilmenite has submitted a petition on allocation of the land for production of titanic ore.
Moreover, the project on the development of the deposit is foreseen in the plan of the Zhytomyr region and has been endorsed by a resolution of the regional council.
"The information spread by the prosecutor's office about allegedly negative reactions of people is false, because during the times of obtaining primary permits in 2012 the company received notarized consents of all land owners and land users in the area. In 2016, in compliance with the legislation, there were public hearings where representatives of the local community supported the implementation of the project on the development of the deposit. Due to the project over 3,000 new jobs will appear in the region within years," reads the statement.
In compliance with the legislation, according to the statement, the company elaborated a project on recultivation of lands that will be gradually implemented after the end of production of ore on the land plot.
During the work on the project the company involved leading consulting and design institutions, including the Hirkhimprom research institute from Ukraine and the HATCH Company from Canada.
"Based on the abovesaid, Group DF deems the continuing persecution of the businesses of the Group and the shareholder from the side of the prosecutor's office as being politically motivated. Moreover, the actions of the prosecutor's office show its negligence regarding the national investors and forms negative assessment of the country by potential foreign investors. As a result, this affects the business environment in the country and stalls the development of business and impedes investment," reads the statement.
The statement reads that the Group will prove its position by all legal means and is ready to apply to Ukrainian and international courts to seek justice.
As Ukrainian News Agency earlier reported, Valk Ilmenite limited liability company was registered in 2001. It mines and produces ilmenite concentrate, its annual capacity is 65,000 tons.
Group DF is a diversified international group of companies with businesses in 11 countries in Europe and Asia.
The group is mainly engaged in nitrogen, titanium, gas, and banking businesses. It is one of the biggest investors in the chemical and energy industries in Eastern Europe.
The group also develops agricultural, media, and real estate companies.
Businessman Dmitry Firtash is the founder and owner of Group DF.
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