Netherlands mining and metallurgical holding Metinvest B.V. (Metinvest) of Ukrainian businessman Rinat Akhmetov conducted a detailed analysis of the damage caused to the company as a result of the full-scale invasion of the Russian Federation in Ukraine and estimated the total damage and damage to assets at more than $ 3.5 billion, which will be claimed from Russia as the aggressor. This is stated in Metinvest's presentation at the 14th annual conference of JP Morgan.
The depreciation of real estate and equipment, as well as intangible resources of the Metinvest group is estimated by the company at $1.414 billion, losses from total income - at $1.154 billion, in total - 2.568 billion dollars. The depreciation of stocks and replacement equipment as a result of the war is estimated at $622 million. Loss of reserves and revaluation of assets and liabilities located in other cities of Ukraine, depreciation of real estate and equipment - $257 million in total, plus damage due to depreciation of inventory and replacement equipment - $43 million. The damage due to the deconsolidation of subsidiaries located in Russia and Belarus is estimated at $52 million. In general, due to the damage caused by the war, the damage is estimated by Metinvest at 3.542 billion dollars.
The presentation of the company emphasizes that it is currently impossible to continue normal production activities in the short term of entities whose assets are located in the temporarily occupied territory, in in particular - Azovstal, MMK im. Ilyich, Mariupol Mechanical Repair Plant and others. The war also affected the work of other subsidiaries of the group.
Metinvest calculated a reserve for the depreciation of tangible assets of subsidiaries located in territories not controlled by Ukraine, heavily affected by hostilities, with physical damage. The group also deconsolidated Metinvest Eurasia and Metinvest Distribution, its traders in Russia and Belarus ceased operations in these countries, followed by the launch of the liquidation of their subsidiaries located there, the presentation states.
At the same time, the group still owns the legal status of these assets.
The group expects to receive compensation for damaged and occupied assets through international courts, in particular, the company's enterprises filed applications with the European Court of Human Rights (ECHR) against the Russian Federation, demanding full compensation for the damage caused by his aggression to the assets and business of Metinvest.
The main shareholders of the holding Metinvest B.V. are the SCM group of Rinat Akhmetov (71.24%) and Smart Holding of Vadim Novinsky (23.76%), jointly managing it.
