Ukraine's state prosecutor on Tuesday, October 12, dropped the legal action against the world's largest integrated metals and mining company ArcelorMittal, which had been seen as a threat to the company's ownership of the Kryvorizhstal mill, purchased in 2005 for $4.8 billion. Upon the withdrawal of the action by the state prosecutor, Kiev City Commercial Court has closed the case.
Prosecutors had raised the issue of the legality of a 2009 agreement between ArcelorMittal and Ukraine's State Property Fund to postpone investment commitments at its Kryvorizhstal steel mill due to the global downturn. The investment commitments were part of the 2005 purchase deal.
"We welcome the decision to stop these proceedings. We are grateful to the Cabinet of Ministers for their consistent support throughout this process. We welcome the government's proposal for discussions on our operations and projects in Ukraine," ArcelorMittal's vice president and management board member Christophe Cornier said.
It was considered that the case against ArcelorMittal could mark the launch of a return of the Kryvorizhstal steel mill into state ownership, with further re-sale to a new owner, as well as the beginning of a totally new era in relationship with investors.