EUROPE

Ukraine port accused of embezzeling by NCC

17 years ago

The Ukranian Supreme Court has ruled that the agreement between the Russian National Container Company (NCC) and the state-run Commercial Sea Port of Illichivsk (SCPI) is void, effectively forcing NCCs Ukrainian subsidiary Ukrtranscontainer to wind up its business in the country.

The verdict overturns the previous judgment of the High Court of Arbitration in Kiev, and has prompted a strong reaction from the NCC.

The terminal operator says that it is “convinced that the Ukrainian government has been deliberately pursuing a course towards nationalizing private enterprise and embezzling the assets brought into the country by foreign and domestic entrepreneurs”.

NCC has made an investment of over $61m into the project since 2005.

NCC has, claims the company, become the fifteenth company in a row of international investors that have been recently forced to terminate their operation in Ukraine, adding that there are still many mid- to large size companies that are currently awaiting court verdicts on similar cases.

Despite this, the NCC has promised that it will take the port of Illychivsk to the international court.