Loading page...

Romanian Business News - ACTMedia :: Services|About us|Contact|RSS RSS

Subscribe|Login

Draft ordnance for the sale of Romania’s share to the unit Krivoi Rog in Ukraine

210712112956Jmg9NDQwJmhhc2g9OGY5MzQ4NjYyNDRlZDM3NjYzNWZkMGY3Yjk2Yzc0ZmI_.thumb.jpg

The ministry of economy, entrepreneurship and tourism (MEAT) announced on Friday that they published  for public debate the draft ordnance which allows the putting to value the assets connected to the Ukrainian unit Krivoi Rog owned by Romania by bidding.

 

Similarly, in order to start the process of selling of the shares, consultancy services will be acquired. This unit has not functioned for 22 years, Romania paid almost one billion dollars for the construction of the unit and received only 0.53% in the quantity of pellets which had to receive.

 

The ministry of economy proposes to put to value the shares through bidding, and in the case where the procedure of bidding was one bid, the bidding can be followed by negotiation, for the maximisation of the revenue. To organize this project, consultancy services will be acquired, including legal consultancy services, the expenses being supported from the budget of the ministry of economy. The sums received from the putting to value of the shares will be included in the state budget.

 

The history of Krivoi Rog unit

 

The mining unit for the improvement of acid ores with iron in Krivoi Rog (CIM Krivoi Rog) was a project of interstate cooperation conceived on a scheme used in the former organisation of the Council for Mutual Economic Aid. 

 

The building of the CIM Krivoi Rog was decided through the multilateral convention regarding the collaboration in this sense, signed on 20 October 1983 in Berlin, between the German Democratic Republic, the People’s Republic of Hungary, the Union of the Soviet Socialist Republics and the Socialist Republic of Czechoslovakia.

 

Later, the People’s Republic of Hungary withdrew from this convention and joined the People’s Republic of Bulgaria and the Socialist Republic of Romania ( on the basis of the intergovernmental convention Romania – Soviet Union of 29 December 1986).

 

As a result of the political and social transformations in the participating countries, after the taking over of the administration of the unit by Ukraine as an independent state, involved in this collaboration were left only Ukraine, Romania and Slovakia.

The sums paid for guarding and conservation of the equipment in the unit in Ukraine are of almost four million lei annually.

 

After 1994, there were bilateral meetings to solve the situation from CIM Krivoi Rog. In 2008, during the meetings in Bucuresti, the Romanian party supported the identification of a solution which ensures the integral payment by Ukraine of the expenses made by Romania for the CIM Krivoi Rog according to the financial data.

 

The Ukrainian party advanced several proposals, among which the solution of privatization of the unit and/or the payment of the Romanian party for the contribution made.

 

In 2011, there was a new plan for privatisation of CIM Krivoi Rog, but it was not put into practice as the Ukrainian party mentioned the necessity to have meetings with the states involved in the project.

 

At the beginning of 2012, the bankruptcy of CIM Krivoi Rog is sent to the Economic Tribunal in Kirovograd, but from the perspective of Romania’s objective to recover the expenses made with CIM Krivoi Rog, the situation was complicated due to the procedure of bankruptcy which took place in parallel with the political evolutions.

 

On 15th May 2019, there took place, at the headquarters of the ministry of economy a meeting between the representatives of the company Hares Engineering GmbH (Austria), potential investors, and the representatives of the ministry of economy, the ministry of foreign affairs and the ministry for business environment, commerce and entrepreneurship.

 

According to the Romanian entrepreneurs, the General Direction CIM Krivoi Rog contrary to the provisions of protocol of 5th May 1994 between Romania’s government and Ukraine’s one withdrew the exterior guards of the Pellets Factory.

 

Due to this fact the cases of break in and the thefts operated by groups of criminals intensified, as their number surpasses the guarding ensured by the Romanian entrepreneurs. The latest case of theft took place during the night of 08-09 January 2021 and following the call to the police, they retained seven criminals.

 

 ‘The CIM Krivoi Rog leadership continues to have a hostile attitude against the Romanian personnel’ the document says.

(Photo: gov.ro)

More