The Minister of Defense: Expropriation of “Ukrnafta” and “Motor Sich” shares into state ownership is not nationalization

Author:
Kostia Andreikovets
Date:

The Minister of Defense of Ukraine Oleksiy Reznikov stated during the briefing that the transfer of shares of PJSC Ukrnafta, PJSC Ukrtatnafta, JSC Motor Sich, PrJSC AvtoKrAZ and PrJSC Zaporizhtransformator into state ownership is not nationalization of these enterprises.

"This is not nationalization, donʼt use that term. This direct confiscation of property during martial law is a completely different legal form," the minister noted.

The Secretary of the National Security and Defense Council Oleksiy Danilov added that in wartime, the state has the right to take appropriate decisions to strengthen defense capabilities.

The Prime Minister Denys Shmyhal said that “the Ukrainian economy is currently on a war footing. The products manufactured by these enterprises are critically needed for the Armed Forces and the energy sector. Therefore, they should provide for the defense needs of the state,” Shmyhal said.

"Enterprises that were already working will receive more orders and more guarantees from the state regarding the production of products. The work of enterprises that did not function today will be resumed. The workers will return to the production process," added the prime minister.

  • On November 7, it became known that as a result of the Supreme Commander-in-Chiefʼs rate meeting, the shares of Ukrnafta, Ukrtatnafta, Zaporizhtransformator, AvtoKrAZ and Motor Sich were forcibly alienated into state ownership.
  • These enterprises are connected with businessmen Konstantin Zhevaho, Ihor Kolomoiskyi, Vyacheslav Bohuslaev and Konstantin Hryhoryshyn. It is not yet known whether they will receive compensation, but the decision of the National Securities and Stock Market Commission contains a clause on the compensation procedure.