The judgment on TogliattiAzot has entered into legal force
The Samara Regional Court confirmed the judgment of the Komsomolsky District Court of Togliatti on the TogliattiAzot case. The judgment has entered into legal force.
“We believe the appellate ruling of the Samara Regional Court is lawful, reasonable, and fair. By doing so, the court upheld the judgment of conviction of the Komsomolsky District Court, and it has entered into legal force. According to the verdict, the majority shareholders of TogliattiAzot are to pay damages to Uralchem in the amount of 10.3 billion rubles (approximately $ 161 million). TogliattiAzot itself was also recognized the victim; its losses resulting from fraud during export operations amounted to 77 billion rubles (nearly $1.203 billion), and these are to be compensated too. We hope that the compensation of multibillion-dollar damages will have the most favorable effect on the future activities of TogliattiAzot. We also hope that the court decision will cease the practice of embezzlement of funds from the plant, and the assets illegally withdrawn will be returned to the enterprise,” said Dimitry Tatyanin, Legal Affairs Director of Uralchem. “The most urgent task the enterprise is currently facing is the implementation of measures aimed at ensuring industrial safety. Worn-out fixed assets and plant infrastructure require substantial investment. The inspection of the industrial safety recently completed at the factory is reported to have detected a lot of major violations that pose a real threat to human life and health. It is the solution of this problem that the urgent allocation of financial resources is required for.
The next task is to implement a comprehensive and consistent production modernization and development program. Significant financial resources are needed for the reconstruction and upgrade of almost all urea and ammonia units, the repair of the gas distribution system, the completion of the third urea unit, and the development of logistics facilities.
Uralchem, as a minority shareholder of TogliattiAzot, is interested in paying damages and returning 77 billion rubles (more than a billion dollars) to the enterprise. This may result in an increase in production and sales, and, consequently, a financial growth.”
The press office of TogliattiAzot reported its disagreement with the verdict of both courts and its intention to appeal against their decisions in accordance with a procedure prescribed by law.
The full text of the judgment is at the disposal of our editorial team and is also available for download from the official website of Togliattiazot. The document can be reviewed via this link.