In a move that could have significant repercussions in the ferroalloy market, especially the manganese and ferrosilicon markets, the High Court in London froze the worldwide assets as well as the six companies that they own or control of Igor Kolomoisky and Gennady Bogolyubov, who are thought to have a significant share, if not outright ownership of the Nikopol Ferroalloy Plant, the Zaporozh’ye Ferroalloy Plant, and Stakhanov Ferroalloy Plants in Ukraine, the Chiatura Manganese Mine, the Zestafoni Ferroalloy Plant, a silicomanganese processing plants in Georgia via Georgian American alloys, and Calvert City and Felman Productions operations via Georgian American alloys in the US.
The case revolves around the forced nationalization of Ukraine’s PrivatBank, which was owned by Igor Kolomoisky and Gennady Bogolyubov. The freezing order, according to PrivatBank, Igor Kolomoisky and Gennady Bogolyubov, was granted “on the basis of detailed evidence put to the court that Messrs Kolomoisky and Bogolyubov extracted almost $2-billion ($2.5-billion with interest) from the bank through a particular series of dishonest transactions, which had the effect of transferring the funds to companies that they secretly owned or controlled.”
Ukrainian officials said over 90% of the loans granted by PrivatBank during their tenure were made to associate persons.
The two were supposed to agree to a repayment schedule by July but nothing has been done except for Igor Kolomoisky and Gennady Bogolyubov countersued the bank claiming the nationalization was illegal.
Mr. Kolomoisky told Ukrainian news that the order didn’t have much significance, saying: “This is a temporary arrest during the trial.”
While the assets are frozen, it could make it difficult for any of the identities to get capex and certainly freezes the sale of Calvert City to RFA.