The Special Anti-corruption Prosecutor's Office (SAPO) has sent a claim to Kyiv's business court asking to annul a contract signed between Ukraine's State Property Fund (SPF) and offshore company Tolexis Trading Limited (Cyprus), part of Dmytro Firtash's DF Group, on the creation of Zaporizhia Titanium and Magnesium Combine LLC on the basis of the eponymous state-run enterprise.

SAPO Head Nazar Kholodnytsky wrote on his Facebook page on Wednesday that the claim was filed in the interests of the state.

He said that it was established that in 2013 SPF signed the contract with Tolexis Trading Limited allegedly aimed at attracting investment, introduce modern technologies and create cost-effective production.

According to the reached agreements, SPF transferred the property of the combine to the charter capital of the newly created company. Tolexis Trading Limited invested $110 million that were to finance modernization of production facilities in 2013 through Q1 2015.

"Despite the fact that the stake in the limited liability company belonged to the state is 51% (a controlling stake), actually the company was transferred to management to managers close to the investor. These managers spent the major part of raised investment to pay a debt of state-run enterprise Zaporizhia Titanium and Magnesium Combine for energy and a debt to creditors affiliated with DF Group. Then the funds were removed from Ukraine via sending them to accounts of offshore firms. Only UAH 20 million was sent to modernization of production," he said.

SAPO initiated the annulment of the contract and return of the combine to the management of the state.

Kholodnytsky recalled that on November 14, 2016 a bill of indictment against the director of the enterprise involved in embezzlement of this investment in the amount of UAH 492 million was sent to court. The pretrial investigation is underway.