Firtash’s holding Ostchem goes bankrupt
25 December 2024 14:42
The Land Court of Salzburg, Austria, has begun consideration of the bankruptcy case of OSTCHEM Holding GmbH, a part of the business empire of Ukrainian oligarch Dmytro Firtash. This was reported by "Komersant Ukrainian" with reference to Ukrinform.
According to information from the Austrian Association for Credit Reforms, OSTCHEM Holding GmbH is registered in Salzburg and is a typical holding structure whose sole purpose is to own and manage shares in other companies. The main owner of the holding (86% of shares) is Fleori Enterprises Ltd. of Cyprus, a company owned by Firtash.
The company’s financial condition is critical. Until recently, the holding’s only asset was a 100%-owned German subsidiary. After the annexation of Crimea in 2014, the holding lost control over a chemical plant on the peninsula. This resulted in the complete cessation of operations of the second-tier subsidiary, Ukrainian Chemical Products, which is now in the process of liquidation.
The company has significant tax debts to Austria: unpaid income tax for 2011 in the amount of EUR 3.36 million and for 2012 in the amount of EUR 4.21 million. These taxes were due on December 27, 2024. There is no possibility of appealing these tax liabilities.
According to the financial statements for 2023, the company has virtually no assets, but has liabilities of about €43 million. The full list of creditors is still being formed. Creditors must submit their claims by March 5, 2025. The company is subject to closure and liquidation, and no more employees are being hired.
At the same time, according to the Austrian newspaper Kleine Zeitung, Firtash, who is hiding in Vienna from the US justice, continues to develop his business. In April 2024, his company Group DF International GmbH signed an agreement with Korean Hyundai Engineering to build a chemical industrial park in Rivne as part of Ukraine’s post-war reconstruction.
It is worth noting that last November, an Austrian court refused to extradite Firtash to the United States, where he is accused of a corruption scheme involving titanium mining in India. In addition, in November 2024, the United Kingdom imposed sanctions on Firtash and his associates, including his wife, over corruption-related activities.
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Life and activities of Dmitry Firtash
Dmitry Firtash is an influential Ukrainian oligarch and entrepreneur who has built his business empire primarily on gas trading and the chemical industry. He was born on May 2, 1965, in the village of Synkiv, Ternopil region. He began his journey into big business in the 1990s, first trading in food and consumer goods, and later switching to the much more lucrative gas industry.
Firtash achieved his greatest influence in 2004-2014, when he was involved in large-scale supplies of Russian gas to Ukraine through his company RosUkrEnergo. He also built up a powerful chemical business by acquiring several large fertilizer companies, which he merged into Group DF. The businessman had a significant influence on Ukrainian politics, in particular through media assets and funding political projects.
After 2014, Firtash’s business empire began to decline. He left Ukraine and settled in Austria, where he still lives today, trying to avoid extradition to the United States on corruption charges. Much of his assets in Ukraine have been lost or frozen, including chemical plants in occupied Crimea. Several countries, including the United Kingdom, have imposed sanctions on Firtash, which has severely restricted his international activities and access to financial resources.
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