Photo from UNIAN
SLAV Handel company, which belongs to the Klyuyev brothers, and its two affiliated entities have filed a bankruptcy application with the International Court of Arbitration of Vienna International Chamber of Commerce, stating European sanctions as a cause of bankruptcy, DW Ukrainian news service reported.
The bankruptcy procedure was also initiated by two subsidiaries of SLAV group which are owned by Serhiy and Andriy Klyuyev, both being included on the EU sanctions list, according to Deutsche Welle referring to KSV1870, Austria's largest association for the protection of creditors.
According to KSV1870 representative, Jurgen Gebauer, the Klyuyev brothers could not get loans to pay off debts, nor were they able to replenish the company’s working capital using own funds due to the freeze of their assets.
As reported, SLAV group's debts amount to about EUR 112 million. More than 90% of the sum is owed to Chinese state concern CNBM International, which is engaged in production of building materials. According to financial statements of SLAV Handel, Vertretung und Beteiligung AG, payments for goods deliveries make up more than EUR 100 million of the debt. The equipment was supplied for solar power plants.
Activ Solar company, which was previously owned by the Klyuyev brothers, operated a number of solar power plants in the south of Ukraine. The business was quite profitable, given the fact that Ukraine had introduced Europe's highest feed-in tariffs on solar power. However, foreign investors complained that access to the profitable tariffs was limited to a narrow range of companies.
Ukrainian media reported that last year CNBM International took control of ten solar power plants of the Klyuyev brothers in settlement of Activ Solar debts. In February, the company was officially declared bankrupt. Its debts were estimated at half a billion euros.
It is noted that SLAV group, however, does not have such highly liquid assets to satisfy the creditors' claims. According to the company’s statements, its assets are estimated at about EUR 80 million. Ukrpidshipnyk group of companies makes up the lion's share of these assets. These are mainly heavy industry plants located in the conflict zone in Ukraine's east.