A new wave of nationalization of industrial enterprises has begun in Russia. In February, the court granted the Prosecutor General's Office's claim to return the Chelyabinsk Electrometallurgical Plant (ChEMK), owned by businessman Yuri Antipov, to the state. The court confirmed that the plant was illegally privatized in the 1990s. After nationalization, 25% of ChEMK may be given to Rostec, and the remaining 75% may be sold to a private investor. Who exactly is not specified.
Sources said that the government is also discussing the fate of two other enterprises owned by Antipov — Kuznetsk Ferroalloys JSC and Serov Ferroalloys Plant JSC. They will also be transferred to Rosimushchestvo.
Putin's conversation with the Governor of the Chelyabinsk Region about the fate of ChEMK
On February 16, shortly before the court decision, President Vladimir Putin met with the Governor of the Chelyabinsk Region, Alexei Teksler. The agenda also included the fate of ChEMK, an enterprise whose shareholders signed an agreement in 2019 to reduce emissions of harmful substances, but did not fulfill their obligations in full. The head of state pointed out that the harmful enterprise should be closed and the production facilities moved outside Chelyabinsk.
Work out with the government the continuation of work, the preservation of jobs, and for the part that is necessary and will be associated with the transfer and with building this work at a new technological level, attract local investors
The largest producer of ferroalloys for the military-industrial complex
According to the materials of the Prosecutor General's Office's claim, Antipov's assets are the largest producers of ferroalloys in Russia (alloys of iron with other elements — editor's note www1.ru).
Such alloys are needed for the manufacture of:
- high-quality steel for military equipment
- heat-resistant aircraft engines
- impact-resistant weapon barrels
- armor-piercing projectiles