The Ukrainian steelmaker ArcelorMittal Kriviy Rih, a subsidiary of steel giant ArcelorMittal, has announced that its refusal to prolong a contract for ferroalloy deliveries in the context of its reduced production rates has led its main ferroalloys supplier Zaporozhye Ferro Alloys Plant (ZZF) to take an action for the legal collection of about UAH 205.59 million (approx. $24.35 million) from the company for pre-payment for future ferroalloy deliveries, as ZZF insists on prolongation of the contractual partnership.
On July 15, 2009, the court of first instance in the Dnepropetrovsk region satisfied the stated claims in relation to payment of these funds in favor of ZZF. However, alleging that "judgment was accepted with gross violation of Ukrainian laws and improper use of material and legal practice of Ukraine," ArcelorMittal Kryviy Rih has appealed to the Dnepropetrovsk economic court relating to the right of ZZF to continue deliveries to the enterprise in conditions of validity of force majeure circumstances, i.e. the global economic crisis.
ArcelorMittal Kriviy Rih halted purchases of ferroalloys from ZZF in the last quarter of 2008 citing the significant reduction of its production rates.