Baltic States – CIS, Investments, Latvia, Legislation, Markets and Companies, Metals Market

Before acquiring this metallurgical giant, Ukrainian and Russian investors were fully aware of the situation in the industry, Lipmans explained. "Two years ago, I already said what this will lead to, the company should have never been sold because they are swindlers," said Lipmans.

The company's new owners have a debt in Ukraine in the amount of more than one billion, Lipmans claimed. "They are refusing to fulfil their obligations in Latvia as well, therefore, they should be legally forced out of the country. The government has every right to do so," the company's former shareholder said.

Acquisition of KVV Liepajas metalurgs was a corrupt case, said Lipmans. "I see no future with such investors".

As reported, KVV Liepajas metalurgs has paid about EUR 100,000 in compensations to the company's laid-off workers.

The company's board member Igor Kovalenko previously said that the problems are caused by the high mandatory procurement component (MPC) for electricity, as it affects the actual costs of the plant's steel melting facility, preventing the company from competing with similar metallurgical plants in other countries.

Kovalenko admitted though that KVV Group was warned about the impact of MPC already before the acquisition.