Turboatom Joint stock : Directorate of “Ukrenergymachines” asks the authorities to support the strategic enterprise of Ukraine

The Directorate of "Ukrainian Energy Machines" JSC asks the authorities to support the strategic enterprise of Ukraine in order to prevent the suspension of its activities. The relevant appeal of the directorate was sent to the Office of the President, the Verkhovna Rada, the Cabinet of Ministers, the National Security and Defense Council, the Ministry of Finance, as well as the Deposit Guarantee Fund for Individuals and the Association of Ukrainian Banks.

The Directorate recalled that "Ukrenergymachines" JSC (the assignee of JSC "Turboatom") is included in the list of state-owned objects of strategic importance for the economy and security of the state. The management of the enterprise emphasizes that the main thing for "Ukrenergymachines" JSC today is the preservation of jobs and maintaining the energy independence of Ukraine during the period of martial law. But now the enterprise is in a difficult state due to the blocking of funds on the accounts of JSC "Megabank".

On the accounts of "Ukrenergymachines" in "Megabank", which was classified as insolvent on June 2, there are funds of the enterprise in the amount of 1,446.4 million UAH, including 833.6 million UAH of deposits that were pledged against bank guarantees as part of the implementation project with PJSC "Ukrhydroenergo" for the rehabilitation of hydro power plants of the Dnieper cascade, financed with the involvement of loans from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).

The total amount of contracts concluded with PJSC "Ukrhydroenergo" is 6,336.9 million UAH, taking into account an increase of 684.9 million UAH due to the adjustment of the price of contracts.

At the same time, in May 2022, 473.1 million UAH was transferred to the account of the enterprise in JSC "Megabank" from PJSC "Ukrhydroenergo", which should have been directed to continue fulfilling orders for PJSC "Ukrhydroenergo".

"Thus, at present, "Ukrenergymachines" JSC is on the verge of losing almost all of the company's funds. The loss (and even temporary blocking) of funds jeopardizes the entire activity of "Ukrenergymachines" JSC, which directly affects the energy potential of Ukraine," - it is stated in the text of the appeal.

In particular, the contracts of "Ukrenergymachines" JSC with PJSC "Ukrhydroenergo" for the modernization of hydro power plants of the Dnieper cascade, at the expense of the EBRD and EIB, are under the threat of non-fulfillment. In addition, "Ukrenergymachines" JSC has valid contracts for the supply of power equipment for the SE NNEGC "Energoatom" in the amount of 2 billion UAH, which are also under threat of non-fulfillment.

"The disruption of contracts with PJSC "Ukrhydroenergo" and SE NNEGC "Energoatom" calls into question the ability to continue the normal financial and economic activities of "Ukrenergymachines" JSC" - the company stressed.

Already today the enterprise does not have the opportunity:

• to pay employees of the enterprise wages in the amount of 30.0 million UAH, taking into account the debts transferred from JSC "Plant "Elektrotyazhmash";

• to fulfill tax obligations accrued to the wage fund in the amount of almost 50 million UAH;

• to pay the debt for energy products, taking into account the debts transferred from JSC "Plant "Elektrotyazhmash" in the amount of more than 200.0 million UAH;

• to repay the debt to subcontractors, as part of the execution of orders for PJSC "Ukrhydroenergo" in the amount of 79.0 million UAH;

• to pay VAT to the state budget in the amount of 114.1 million UAH and income tax in the amount of 87.0 million UAH.

Thus, the company is not able to replenish the state budget for a total of 251.1 million UAH.

"The current situation may lead to the bankruptcy of "Ukrenergymachines" JSC. It became possible in connection with the decision of the NBU No. 261-рш/БТ dated 02.06.2022 made on the basis of the results of the inspection of JSC "Megabank", which, in turn, were recognized as illegal and canceled by the decision of the Kharkiv District Administrative Court on 22.02.2022," - the directorate noted.

The management of the enterprise asks the state authorities to pay attention to this situation.

"The continuance of stable operation of "Ukrenergymachines" JSC is impossible without state intervention in the procedure for the withdrawal of JSC "Megabank" from the market, initiated on the basis of an illegal decision of the NBU. The NBU will lose an enterprise that is strategically important for the energy security and independence of Ukraine. (…) The continuation of the activities of JSC "Megabank" will save funds on the accounts of "Ukrenergymachines" JSC and ensure its further life as a strategically important enterprise for the state," - the text of the appeal states.

Viktor Subotin, the main shareholder of "Megabank", also made a separate appeal to the state authorities. He asks, in order to protect the interests of the state and "Ukrenergymachines" JSC, to extend the temporary administration in the bank until September 2 and to consider the issue of withdrawing JSC "Megabank" from the market with the participation of the state in the manner specified in paragraph 5 of part 39 of the Law of Ukraine "On the system of guaranteeing deposits of individuals persons", namely the buyout of an insolvent bank by an investor.

As investors, he proposes to consider the Ministry of Finance of Ukraine, "Ukrenergymachines" JSC and Royal Pay.

It is worth reminding that the National Bank declared Kharkiv "Megabank" insolvent in early June. The bank has a temporary administration.

In early July, at a press conference, representatives of the bank's management announced that there was a court decision that made it impossible to further liquidate the bank.