Accounts of state-owned enterprise Artyomsol in the evening on November 2, 2017 were arrested, and operations of the enterprise could be paralyzed, the enterprise has said in a press release.

According to the report, the accounts were arrested as part of the enforcement procedure to collect UAH 70.5 million of fine from Artyomsol, as the company violated the conditions of a contract with collective enterprise of peacekeeping soldiers Memory in the period of 2013-2015.

"At present, the enforcement service did not notify Artyomsol in a proper way that the enforcement procedure was launched, which is violation of Article 28 of the Ukrainian law and Article 19 of the Constitution of Ukraine. According to information received yesterday from banks that service accounts of the enterprise, the enforcement procedure was launched and an order to arrest assets of Artyomsol was issued," the enterprise said in a press release.

Thus, after litigation in courts between Memory and Artyomsol, the state-owned enterprise is to pay a fine of UAH 63.95 million, a court fee of UAH 172,500 and the enforcement fee of UAH 6.4 million. In turn, Artyomsol filed a counterclaim to the higher business court of Ukraine.

"In the course of protracted litigation, Artyomsol defended the position of recognizing the agreement with Memory as invalid because of the violation of anti-corruption legislation. In 2017, Head of the enterprise Viktoria Lutsenko appealed to the Verkhovna Rada committee on anti-corruption policy with a request to assist in resolving this issue," the enterprise said.

The controversial agreement on startup works between Memory and Artyomsol was signed on October 28, 2005 for a period of more than 11 years. At the time of the conclusion, an estimated amount of UAH 16.06 million was set in the contract, which on June 20, 2014 was increased to UAH 63.95 million. According to the terms of the contract, as a result of failure to meet its obligations by the state-owned enterprise in 2014-2015 it became possible to recover UAH 63.95 million from the enterprise.

Artyomsol tried to prove in court that the said agreement contradicts the interests of the state, it does not correspond to the economic goal of the state enterprise, and it is concluded with a conflict of interests (in order to create an artificial debt of the state enterprise before Memory), in violation of anti-corruption legislation. The contract, supplementary agreements and protocols to it were signed by persons who are affiliated with each other in corporate interests and kinship ties, which may indicate their personal interest.

"To date, Head of the enterprise Lutsenko is taking all possible measures to prevent write-offs of the funds. Appeals to the Agrarian Policy and Food Ministry of Ukraine, the Ministry of Justice, the Prosecutor's Office of Donetsk region, NABU [National Anti-Corruption Bureau of Ukraine], again to the Verkhovna Rada committee on anti-corruption policy and the head of Donetsk Regional Administration with a request to assist in resolving this issue have been sent," Artyomsol said.

The state-owned company said that if the above penalties are written off from its accounts, social obligations may be jeopardized. Nevertheless, the management of the enterprise is taking measures aimed at timely payment of salaries to employees of Artyomsol and meeting all the financial obligations.

Artyomsol is the largest enterprise for production and sale of table salt (NaCl) in Central and Eastern Europe. Its production facilities are located in Soledar (Donetsk region). The company exports its products to 19 countries. About 35% of the company's products are sold in Ukraine, and the rest are supplied abroad (data for 2016).