Vorskla Steel Declares Interest in Owning Bulgaria's Obsolete Mill

Troubled steel giant Kremikovtzi provided jobs for over 5 000 people and its future was a politically sensitive issue ahead of the general elections last summer. Photo by BGNES

The CEO of Vorskla Steel Bulgaria, Viktor Demyanyuk, declared at a press conference Wednesday that the company is still interested in purchasing the Bulgarian obsolete steal mill Kremikovzi.

The Ukrainian Vorskla Steal, related to billionaire, Konstantin Zhevago, will take part in the public tender for the mill's sale despite the fact the latter is “a jalopy with the price of a Mercedes,” according to Demyanyuk.

The CEO insists his company, which has been declared insolvent, has money for the purchase, but wants first to check thoroughly the real condition and state of Kremikovzi in order to make sure he can have a return on the investment and the mill can really produce something that can be sold on the world market.

The asking price is BGN 565 517 510 M.

Demyanyuk says he already has a recovery plan for the mill; had conducted preliminary talks with the companies to which the behemoth owes money and they were ready to accept differed payments.

The CEO further presented documents evidencing embezzlement, Value Added Tax (VAT) draining schemes at Kremikovzi, and the illegal sale of electric power to other companies for prices 25% higher than the market ones.

Demyanyuk was firm “Vorskla Steel” was chased away from the mill on purpose with the sole goal to declare it bankrupt.

Earlier Wednesday, Bulgaria announced the site and the assets of its largest steelmaker Kremikovtzi will be offered for sale in the middle of September, four months after the behemoth was sent into liquidation.

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