Ukrainian “Metinvest” will repay JSC in several installments”Daugavpils “Locomotives Repair Plant” debt, including the first payment of 900,000 euros, was reported by the representatives of “Daugavpils Locomotive Repair Plant”.
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At the same time, the company also informs that the next payment of 1.3 million euros is currently expected.
Similarly, the representatives of “Daugavpils Locomotive Repair Factory” state that receiving payments from “Metinvest” was previously impossible of Russia because of the invasion, and this situation significantly hampered the operation of the “Daugavpils Locomotive Repair Factory”.
According to the company’s explanation, “Metinvest” has exceptionally received the consent of the Ukrainian state authorities to make a payment to “Daugavpils Locomotive Repair Plant”, which is the only cross-border payment allowed by “Metinvest”.
“The government of Ukraine, by granting such a permit, has confirmed the importance of the “Daugavpils Locomotive Repair Plant” for the Ukrainian economy and the logistics industry, because without the “Daugavpils Locomotive Repair Plant” neither the circulation of Ukrainian railway cargo nor the restoration of the national railway infrastructure after the end of the war will be possible,” says chairman of the company board Anastasia Udalova.
It has already been reported that at the beginning of May, the Minister of Infrastructure of Ukraine, Oleksandrs Kubrakov, addressed to the Minister of Transport of Latvia Tālis Linkaits (K) with a letter stating that the “Daugavpils Locomotive Repair Factory’s” long-term experience, unique work specificity and ability to provide a full range of services will be extremely important in the reconstruction of the railway infrastructure of Ukraine after the end of the war”.
Also, the management of the partner of “Daugavpils Locomotive Repair Factory” – the Ukrainian company “Metinvest” – sent an official letter to the Cabinet of Ministers of Latvia, indicating the strategic importance of “Daugavpils Locomotive Repair Factory” in the restoration of the currently destroyed railway infrastructure and its equipment.
Kubrakov stated in the letter that deliberate attacks are being made against the Ukrainian railways, destroying the infrastructure. A letter Ministry of Transport it is noted that Ukraine’s ability to provide train rolling stock repairs and locomotive repairs is limited, as Ukrainian factories, as well as other objects of strategic importance, are regularly threatened by explosions and targeted attacks.
In the letter, the minister expressed his hope for cooperation with countries supporting Ukraine and their companies, noting that such a strategically important company in Latvia is “Daugavpils Locomotive Repair Plant”. It could provide repairs to the rolling stock of the Ukrainian railway “Ukrzaliznytsia”, thereby reducing the damage caused by the war. In the letter, the minister referred to the high quality of the maintenance and rolling stock overhaul work performed by “Daugavpils Locomotive Repair Factory”, as well as the mutual trust that was formed as a result of good previous cooperation.
At the same time, the General Director of “Metinvest” Aleksandrs Gerasimčuks stated in a letter to the Latvian Cabinet of Ministers that the company is aware of the financial difficulties encountered by the “Daugavpils Locomotive Repair Plant”.
Like the Minister of Infrastructure of Ukraine, Gerasimchuk also emphasized that as a result of the hostilities, the repair of railway equipment has become completely unavailable in Ukraine. As the representative of the company emphasizes, “Daugavpils locomotive repair plant” is one of the key cooperation partners, and “Metinvest” is extremely interested in the Daugavpils plant continuing to fulfill orders, providing locomotive repair and modernization works.
“Metinvest” also owns the metallurgical plant “Azovstal”.
“Daugavpils Locomotive Repair Plant” worked with a turnover of 46.76 million euros in 2020, which is 0.6% less than in 2019, but the company’s profit grew 6.3 times and reached 2.066 million euros. On the other hand, “Daugavpils Locomotive Repair Factory” concern worked with a turnover of 39.7 million euros in 2020 and made a profit of 2.4 million euros. The company’s 2021 financial results have not yet been made public.
The company “Daugavpils locomotive repair plant” was registered in 1991, and its share capital is 24,445,037 euros. The real beneficiary of the company is Estonian entrepreneur Oleg Osinovskis.
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