Russian fertilizer company Uralchem Co. and Swiss-based trading firm Ameropa AG have recently launched a war of words in a long-standing feud over Russian nitrogen and methanol producer OJSC Togliattiazot.
Uralchem, a shareholder in Togliattiazot since 2008 with a 9.9 percent stake, alleges that majority holders of Togliattiazot have illegally withdrawn funds and property, and that the company exported ammonia and urea to Ameropa and its related company, Nitrochem Distribution AG, at less than fair value. As a result, Uralchem says minority shareholders lost a significant share of their dividends, and the state lost tax revenues. It said total damage to minority shareholders and the state exceed US$1.5 billion.
Uralchem said Jan. 15 that Evgeniy Korolev, director general of Togliattiazot; Sergei Makhlai, board chairman and a principal beneficiary of the enterprise; Vladimir Makhlai, ex-head and a principal beneficiary; Andreas Zivy, Ameropa board chairman; and Beat Ruprecht, a principal beneficiary of the enterprise and board member of Ameropa and Nitrochem, were all accused by the Investigative Committee of the Russian Federation of fraud, arrested in absentia, and put on an international wanted list.
In a Dec. 31 statement on its website, Ameropa said that Russian oligarch Dmitry Mazepin and his company, Uralchem, have been trying to take over Togliattiazot by any means. Ameropa said as a holder of only 12 percent, it has been a bystander in the fight between Mazepin and the majority owners.
Ameropa said Mazepin launched unfounded criminal complaints in 2012, but more recently was able to increase his pressure so that arrest warrants were issued and Ameropa was pulled into the struggle. “We vehemently deny all of the unfounded allegations of Mr. Mazepin and the unfair means employed by him to achieve his goals,” said Zivy, in the statement on the Ameropa website. “Mazepin obviously intends to force us to surrender, by the use of false allegations, slander, and police pressure. We also underline that whereas Togliattiazot is in excellent financial shape despite the constant harassment by Mr. Mazepin, Uralchem has a huge debt of close to US$4 billion and large losses in the current year. We shall fight with all legal means at our disposal to defend our property.”
Uralchem took offense at Ameropa’s allegations regarding its performance, noting that the debt was due to its fundraising to buy a 20 percent stake in Uralkali. Furthermore, it said that based on its results for January-September 2014, the EBITDA index of the company increased 6 percent, to 18.27 billion rubles with a profitability of 35 percent, one of the highest in the industry. Uralchem went on to say that Togliattiazot’s seven ammonia plants operate less effectively by producing less ammonia as a whole and have a lower average unit capacity than Uralchem’s five ammonia plants.
In the meantime, Togliattiazot says the criminal prosecution of Sergei Makhlai is warrantless and that it will seek a repeal of the decree.