The decision of the Appeals Chamber of the High Anti-Corruption Court (HACC) has confiscated all assets of Demuryne Mining and Processing Plant LLC, namely, corporate rights in the amount of 100%, movable and immovable property of the enterprise and cash on accounts in the amount of UAH 14.4 million, the Bureau of Economic Security (BES) has said.
Earlier, the decision of the HACC imposed a sanction on Russian citizen Mikhail Shelkov, the ultimate beneficial owner of Demuryne Mining and Processing Plant LLC, as provided for in paragraph 1-1 of Part 1 of Article 4 of the law on sanctions, and recovered an apartment, 100% of the share in the authorized capital of VSMPO Titan Ukraine LLC and the property of this enterprise - real estate, cars, and cash - for the state's revenue.
The BES detectives established that the company's officials, in collusion with officials of offshore companies, sold titanium raw materials to a European company at a deliberately low price in 2021.
Thus, their actions led to the state budget failing to receive more than UAH 10.1m in revenue.
In addition, the investigation found that the company exported extracted titanium-containing raw materials to enterprises in the Russian Federation and the Republic of Belarus in 2020-2021.
"According to the documents, the plant supplied this raw material to an allegedly Austrian company. However, in fact, the products were immediately sent to Russian and Belarusian enterprises and used, among other things, for the production of certain parts of fighter jets and missiles that are now being fired at Ukraine," the BES noted.
Earlier, the Anti-Corruption Action Centre reported that the HACC refused to confiscate the Demuryne Mining and Processing Plant owned by Shelkov. This plant produces ilmenite concentrate and is the oligarch's most valuable asset.
Ukraine imposed sanctions on Shelkov in the summer of 2021.
Demuryne Mining and Processing Plant LLC develops the Vovchanske deposit in Dnipro Region and is registered with the Cyprus offshore company Limpieza Limited, whose ultimate beneficiary is Russian billionaire Mikhail Shelkov (worth $1.5 billion).