10:12 06.03.2017

France's Air Liquide stops operations on DPR territory

2 min read
France's Air Liquide stops operations on DPR territory

The French company Air Liquide, one of the global leaders on the market for industrial gases, has announced its decision to end operations in the breakaway areas of Ukraine's Donbas region, where it has a subsidiary, Air Liquide Yenakievo (Donetsk region).

The move was prompted by the decision of the self-proclaimed Donetsk People's Republic (DPR) to introduce temporary administration at enterprises that are under Ukraine's jurisdiction.

"Following recent decisions of the DNR - self-proclaimed Donetsk People's Republic - establishing its administrative control over some Ukrainian companies (including Air Liquide Yenakievo) operating in the Donbass region, Air Liquide is no longer able to continue its remaining activities in that region," Air Liquide said in a statement.

"The security of our employees as well as compliance with applicable Ukrainian and international laws remain our priorities," it said.

According to its press release, Air Liquide is the world leader in the production of gases for industry, healthcare and environmental protection. It supplies oxygen, nitrogen, hydrogen and other gases. The group is present in 80 countries, its revenue in 2016 stood at 18.1 billion euros.

Air Liquide has been present in Ukraine since 1992, initially as a provider of engineering services. In 2011 Air Liquide started the production and sale of industrial gases.

Metinvest, the Ukrainian mining and metals holding company, signed a long-term contract with Air Liquide for the outsourcing of technical gases to its Yenakiyeve Iron and Steel Works. The cost of building a new air separating unit (ASU-1400) for the production of technical gases (oxygen, nitrogen and argon) was estimated at 130 million euros.

The DPR announced the introduction of temporary administration at 43 enterprises under Ukrainian jurisdiction, including Air Liquide Yenakievo, from March 1, 2017.

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