ukraine's richest man is having a lucrative war

8/12/2019 Ukraine's Richest Man is Having a Lucrative War

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Ukraine's Richest Man Is Having A

Lucrative War

JOHN HELMER,DANCES WITH BEARS

JUL. 24, 2014, 8:54 AM

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AP Photo


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John Helmer

John HelmerJohn Helmer is the longest continuously serving foreign

correspondent in Russia, and the only western journalist to direct his

own bureau independent of single national or commercial ties. Helmer

is one of the most widely read Russian specialists in the business

world for his news-breaking stories on Russian diamonds, mining,

shipping, insurance, food trade, and business policy.

Recent Posts

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Sanctions On... Meanwhile, The Russian Art Market Is On Fire

Rinat Akhmetov is still the Ukraines richest man. If you believe the financial reports just

issued by his Metinvest group, Ukraines largest steel, ironore, coal and coke maker, its

a case of his singing all the !ay to the bank in "!it#erland $ !ithout the irony of the

musical, %&' (hat A )ovely (ar'*

A ne! ratings reportissued by Moodys claims that Metinvest isbenefitting from %the companys ability to generate positive cash flo!s

even in times of a severe do!nturn as observed in +- and morerecently /+0 lo! leverage /10 high degree of vertical integration /20large iron ore reserves and /30 the geographically advantageouslocation of some of its major assets.* 45actly !hat advantage thegeography of eastern Ukraine is conferring on Akhmetovs businessMoodys analysts dont say.

6he !orst Moodys can think of in the short term for Akhmetov is that%do!n!ard pressure could be e5erted on Metinvests rating as a result

of a further potential do!ngrade of the sovereign rating and7or furtherlo!ering of the foreigncurrency bond country ceiling.*
http://www.businessinsider.com/author/john-helmerhttp://www.businessinsider.com/author/john-helmerhttp://www.businessinsider.com/ihor-kolomoyskyi-loves-imfs-emergency-liquidity-assistance-2014-6http://www.businessinsider.com/ihor-kolomoyskyi-loves-imfs-emergency-liquidity-assistance-2014-6http://www.businessinsider.com/rosneft-ceo-warns-against-increasing-sanctions-2014-6http://www.businessinsider.com/rosneft-ceo-warns-against-increasing-sanctions-2014-6http://www.businessinsider.com/russian-art-market-on-fire-2014-6http://johnhelmer.net/wp-content/uploads/2014/07/Metinvest-CO.pdfhttp://www.businessinsider.com/author/john-helmerhttp://www.businessinsider.com/author/john-helmerhttp://www.businessinsider.com/author/john-helmerhttp://www.businessinsider.com/ihor-kolomoyskyi-loves-imfs-emergency-liquidity-assistance-2014-6http://www.businessinsider.com/ihor-kolomoyskyi-loves-imfs-emergency-liquidity-assistance-2014-6http://www.businessinsider.com/rosneft-ceo-warns-against-increasing-sanctions-2014-6http://www.businessinsider.com/rosneft-ceo-warns-against-increasing-sanctions-2014-6http://www.businessinsider.com/russian-art-market-on-fire-2014-6http://johnhelmer.net/wp-content/uploads/2014/07/Metinvest-CO.pdf


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6he Moodys report !as issued on April 8. 6he good ne!s hascontinued to stream in from the, er, eastern front. In the 9une :uarter,Metinvest announcedon 9uly 8;, crude steel output !as up ;< on theMarch :uarter, and ironore concentrate gre! by 2< over the same

interval. 6he firsthalf results !erent as good, by comparison !ith ayear ago = steel production do!n ;


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sectors /construction, machinebuilding and pipeline infrastructure0.*&n the other hand, e5port sales compensated slightly, rising 8< yearon year. (ar proved to be good for business, at least in Ira:, "yria,4gypt, and )ibya. %6he proportion of sales to the Middle 4ast and

Eorth Africa /M4EA0 rose by @ pp yoy to +


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"MAR6 group. Eovinsky, an ethnic Russian, is doing less !ell out ofthe !ar. ?ays after the Jebruary +8 political change in iev, theEational Kank of Ukraine put his Jorum Kank into bankruptcyadministration.

Akhmetovs Jirst Ukrainian International Kank /JUIK in 4nglish,HUMK in Russian0 is alive and kicking. Its releasesfor the first :uarterthis year claim its assets have gro!n modestly in value, !hile itsincome has jumped ahead of its impairments and !riteoffs. 6heAkhmetov bank profit to March 18 !as the e:uivalent of B8D millionthats 2+< better than it !as before the 6roubles, a year ago. 6hisresult !as achieved !ith very little cash from the Eational Kank ofUkraine /EKU0 = a fraction of the receiptsof rivals Hrivatbank /Igorolomoisky0, ?elta Kank /Gargill of the U"0, Jinance P

Gredit/onstantin Qhevago0, Krokbi#nesbank /"ergei urchenko0,and i#avi Kank /italiy Oayduk, "ergei )evochkin, and "ergei6aruta0.

6his !eek, on 9uly +8, the !ar finally caught up !ith Akhmetovsbusiness !hen artillery struck the Avdiivka Goke Hlant, setting it onfire for several hours. A Metinvestannouncementavoided identifyingthe source of the bombardment. A KKG ne!s bulletin claimed theincendiaries !ere fired by the Ukrainian military.

johnhelmer.net

Red = steel, iron, coal, and coke plants Avdiivka is no.9; Azovstal no. 1; Ilyich no. 2;

Yenakiieve, no. 3
http://pumb.ua/files/ir/report/2014/IFRS_Financial_statements_1Q2014_Eng.pdfhttp://johnhelmer.net/?p=11035http://www.virtusinterpress.org/IMG/pdf/3_CORPORATE_CONTROL.pdfhttp://www.virtusinterpress.org/IMG/pdf/3_CORPORATE_CONTROL.pdfhttp://igcp.eu/videosvidetelstva/avdiivka-coke-and-chemical-plant-fire-near-donetsk?language=enhttp://www.metinvestholding.com/en/press/news/show/3434http://johnhelmer.net/?p=11188http://pumb.ua/files/ir/report/2014/IFRS_Financial_statements_1Q2014_Eng.pdfhttp://johnhelmer.net/?p=11035http://www.virtusinterpress.org/IMG/pdf/3_CORPORATE_CONTROL.pdfhttp://www.virtusinterpress.org/IMG/pdf/3_CORPORATE_CONTROL.pdfhttp://igcp.eu/videosvidetelstva/avdiivka-coke-and-chemical-plant-fire-near-donetsk?language=enhttp://www.metinvestholding.com/en/press/news/show/3434http://johnhelmer.net/?p=11188


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l!e = ports, incl!din" #ari!pol no. $

%o!rce&Ann!al Report 2'13 pa"e 13

4ven if Akhmetovs steel and bank financial reports omit to report theimpact of the eastern Ukraine conflict, and the Moodys report passes

over !ar risk, holders of Metinvests +8; BD3 million bonds, !hichare traded on the Kerlin "tock 45change, are not so sanguine. Jromnearpar value at the start of the year, the traded value of the paperhas fallen by 8D


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Akhmetovs subsidiaries for failing to pay their gas arrears has beenreportedthis month in the Ukrainian press.

6he IMJ papers do not mention Metinvest, Akhmetov, or individualmills and proprietors by name. 6he IMJ conditions for funding the

Ukrainian state budget and banking system include an immediate 2

ukraine's richest man is having a lucrative war

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