Metinvest's railcars with raw materials are being blocked in Donetsk oblast
OREANDA-NEWS. Metinvest Group announces that raw materials supplies from Krasnodon Coal to the Group's enterprises are being blocked. On January 13, 2015, 48 railcars from Krasnodon Coal bound for Azovstal and Avdiivka Coke, were held up at the Krasnyi Liman station for inspection by the State Fiscal Service of Ukraine. Five days later, the railcars were arrested by the Security Service of Ukraine.
During judicial proceedings on January 22, a resolution was adopted to release the railcars. However, the station is still holding the railcars, citing the prohibition by the Security Service of Ukraine.
The situation is becoming worse because new railcars arriving at Krasnyi Liman are also getting held up. As of January 29, the station has blocked 144 railcars with coal and scrap and another 166 railcars are in transit to the station. There are another 336 railcars with coal products from Krasnodon Coal on this railway section bound for Metinvest's enterprises.
Interruptions in supplies from Krasnodon Coal can lead to reduced production at Metinvest's metallurgical enterprises and could cause Avdiivka Coke's batteries to suspend production.
Metinvest Group believes there is no basis for holding the railcars loaded with coal and requests law enforcement bodies facilitate a rapid resumption in raw material supplies.
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