Daugavpils industrial plant starts recovering debt from Ukrainian Metinvest

Take note – story published 1 year ago

The Daugavpils Lokomotīvju Remonta Rūpnīca (Daugavpils Locomotive Repair Plant, DLRR) has reached an agreement with the Ukrainian Metinvest about debt payment made impossible by the war, according to information by DLRR on July 20.

DLRR and its subsidiaries SIA LokRem, SIA DL Metal and SIA Logkom at the end of March sent an application to the State Employment Agency on a collective lay-off of 240 employees. They point out that the Russian war in Ukraine has severely affected the work of DLRR. Metinvest Group's indebtedness to DLRR currently amounts to EUR 8,229,550 for orders placed on the Ukrainian market.

Debt payment from Metinvest was impossible due to the Russian war in Ukraine. As an exceptional case, Metinvest has now obtained permission from the Ukrainian authorities to carry out transactions to Latvia. The first payment of 0.9 million euros has already been received, and the next one would amount to EUR 1.3 million.

"The Ukrainian government, by granting such a permit, has demonstrated the importance of DLRR for the Ukrainian economy and the logistics sector, as without DLRR, neither the movement of Ukrainian rail freight nor the rebuilding of the country's railway infrastructure after the end of the war will be possible," said Anastasija Udalova, chair of the DLRR Council.

The repayment of Metinvest debt facilitates the solvency situation of DLRR, which is significantly affected by the war in Ukraine and the ensuing transport crisis throughout the region. Metinvest is one of the largest raw materials mining, metals production and transport companies in the Ukraine-Eastern Europe region.

As reported earlier by LSM, in May, Ukrainian Infrastructure Minister Oleksandr Kubrakov and Metinvest appealed to the Latvian government to support DLRR. According to the Ukrainian side, Latvian authorities did not reply. 

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