KYIV. Dec 20 (Interfax-Ukraine) – Pulp Mill Holding (Austria), the sole shareholder of JSC Kyivsky Cardboard and Paper Mill (Obukhiv, Kyiv region), on the basis of preliminary agreements and as a result of restructuring in October 2022, changed the owner to a new one – instead of Vladimir Krupchak, a citizen of Cyprus, Dr. Heinz Zinner, who has 50 years of experience in the industry, became the controlling person, Olha Komar, legal director of the plant, has said.

"Back at the beginning of 2022, Krupchak decided to withdraw from some production assets. In June-July, four companies posted informational reports to the National Securities and Stock Market Commission about their intention to acquire the shares of the plan. However, the work of the depository system, which allows transactions, was resumed only in August, but at that time, within the framework of criminal cases, the shares of the Kyivsky mill were seized, and the implementation of the agreements became impossible," Komar said at a press conference at Interfax-Ukraine in Kyiv on Tuesday.

Therefore, according to her, the decision was made to change the owner of Pulp Mill Holding GmbH. She also said that the holding also withdrew from investments in Russian enterprises of the industry (it owns the Arkhangelsk Pulp and Paper Mill in the Russian Federation).

At the same time, as Deputy Head of the Supervisory Board of the Kyivsky Cardboard and Paper Mill Oleh Dubrovka said, Krupchak became the unifying factor in all criminal cases initiated against the plant, against whom sanctions were applied as a citizen of the Russian Federation.

"As soon as information about Krupchak's Russian citizenship began to appear, our legal service informed all possible government authorities – the SBU, the Prosecutor General's Office, the relevant ministries, the National Security and Defense Council, the President's Office that Krupchak is not a citizen of the Russian Federation and documented that he left the Russian citizenship in 2007, received Ukrainian citizenship, and in 2019, after an attempt to kidnap him, about which there is open criminal proceedings, his family left for Europe for permanent residence. However, despite this, we see a presidential decree to include him in the sanctions list," Dubrovka said.

He added that from that moment on, the plant began to have problems with operations with the banking system.

"Banks – both national and international – completely stop servicing enterprises, and Credit Agricole Bank pays taxes on the day of payment of salaries, but does not transfer salaries to staff. At the same time, despite our explanations, no explanatory work and assistance neither from the NBU nor from the Ministry of Justice followed," he said.

He added that in parallel there are problems with suppliers and customers.

Dubrovka recalled that Pulp Mill Holding has been operating in Ukraine since 2000, and during this time it has invested EUR 350 million in Ukraine. The group of companies employs about 3,500 people, and the plant has been completely modernized. Over the past five years, taxes in the amount of UAH 4.3 billion have been paid, UAH 2.7 billion in wages have been paid, and a profit of UAH 2.5 billion has been fully invested in production infrastructure.

"Together with production sites in Ukraine, we have a system of electric cogeneration that helps to partially cover the shortage of electricity, which makes it possible to maintain the social infrastructure of Obukhiv: hot water, sewerage. We use our own funds to treat wastewater throughout the city and support the energy saving system," Dubrovka said.

"And against this background, we were surprised that early April law enforcement agencies came with searches, and we heard accusations that the group of companies is working with the Russian Federation, that our sanitary and hygienic products are sold in uncontrolled territories, and criminal proceedings are starting to grow like mushrooms after rain. We are accused of non-payment of taxes, that we bought a bankrupt enterprise at an auction [Blitz Print], which had already been stopped at that time, at an unfair price. There are accusations that the group of companies is withdrawing significant funds to the territory of the Russian Federation," he said.

Dubrovka said that the law enforcement agencies use the method of generalization, although no companies of the holding cooperate with the Russian Federation, they do not finance terrorism and do not legalize funds obtained illegally.

Ivo Valchev, Deputy Director of Pulp Mill Holding, expressed concern about the ongoing pressure from law enforcement agencies on the plant.

"Since spring, our attempts to prove that we have not violated the law have been unsuccessful. But we will use all available tools to prove our case. Pulp Mill Holding began investing in Ukraine more than 20 years ago not for speculative purposes, and despite the war, we continue investing and providing humanitarian assistance," he said.

Austrian Ambassador to Ukraine Dr. Arad Benkö said that the embassy respects the right of law enforcement agencies to conduct investigations within their powers.

"The embassy asks to make sure that restrictive measures (seizure of accounts, searches) are carried out reasonably and proportionately and do not lead to the blocking of business when the allegations are not confirmed," he said, stressing that the embassy asks to consider the arguments of the Austrian holding in full and will continue following the situation.

As reported, the Prosecutor General's Office reported on the seizure of corporate rights and property of enterprises in the amount of more than UAH 1 billion, the beneficial owner of which is a citizen of the Russian Federation – a former deputy of the State Duma of the Russian Federation (it was about Krupchak). In September of this year, the National Police announced the seizure of the assets of 169 real estate objects worth more than UAH 10 billion owned by Krupchak.

Kyivsky Cardboard and Paper Mill (Obukhiv, Kyiv region) is one of the largest enterprises in Europe for the production of cardboard and paper products with a staff of about 2,200 people.

As reported, at the end of June, the National Securities and Stock Market Commission published announcements of intent to acquire a 24.7% stake in JSC Kyivsky Cardboard and Paper Mill, which was expressed by three companies: Austrian Norecom Forest Products GmbH, Turkish REİS Pazarlama Ve Ticaret and Sentis Aussenhandels GmbH registered in Germany (Director - Stefan Prodol, member of the Supervisory Board of the KKBK). In August, the Austrian TPCA Papierindustrie Holding GmbH announced its intention to purchase 6.36 million shares (or 15.9% of the charter capital).