According to a statement on its website, the Russian mining and metals company Mechel has received an order from the self-proclaimed Donetsk People’s Republic (DPR) introducing temporary administrative control over the Donetsk Electrometallurgical Plant (DEMZ) property, located in the occupied territory.
The order is dated June 25 and is signed by the DPR leader Alexander Zakharchenko. It says that a new company, Yuzivka Metallurgical Plant, should be established on the premises of the existing plant, taking over control of the entire property.
“Now the company Mechel is carrying out a legal examination of the situation and, if necessary, will undertake measures to protect their rights and interests in accordance with the law. These events will not have a significant effect on the company’s financial results since operating activities at the DEMZ were shut down in 2012, and the company made a provision for impairment of DEMZ based on the results of 2013–2014,” the company’s statement reads.
As the acting Minister of Industry and Trade of the so-called Donetsk People's Republic, Aleksey Granovsky told RIA Novosti that authorities from the self- proclaimed Republic will give the property back to Mechel if it promises to put the plant back into operation.