What ruins OPZ?

The Board of Odessa Port Plant held an extra-ordinary meeting on 27 December and appealed by minutes 61 to Cabinet to prevent the complete destruction of the plant.



The wage arrears rose to 30 mln hryvnas, the tax debt – to 6.2 mln hryvnas. The total liabilities, including the natural gas supply and service liabilities, amounted 7,692.6 mln hryvnas. Current liabilities amounted 130.9 mln hryvnas. All this resulted in sufficient manpower drain. The Plant lost 564 workers in 2018. Most of them found new work abroad and unlikely would come back.


The Board of the Plant appeals to Cabinet and asks to applied extraordinary measures. “One of the most effective way to lead JSC OPZ out the crisis would be a decision of Ministry of Ukraine as per paragraph 17.1.10 article 17 and article 43 of the Tax Codex of Ukraine to provide repayment of the profit tax at the rate 489.8 mln hryvnas and grant of stabilization credit in total 500 mln hryvnas for JSC OPZ to enable improving working assets of the Plant, promote restarting and allow increasing an investment attractiveness of JSC OPZ on the final privatization stage”.


As the members of Board noticed, and the Plant staff mentioned repeatedly, OPZ would have no working assets, no ability of direct natural gas purchase and sell own production, and on account of unknown and not related to the Plant circumstances – without tolling partner. It is mentioned in the minutes, that the firms such Liberty Gas LLC, Energy Equivalent LLC, ETFX UK GROUP LLC (Oman) competed in the tenders in 2018. However, the terms were failed and the Plant wasn’t running.


The text of minutes is here.