Ukraine is strangling the leading mechanical engineering enterprise - Kharkov Turboatom
The Government of Ukraine increased the share of profit contributions to the state budget for the Kharkov-based Turboatom from 50 to 75%.
The money goes to the budget in the form of dividends: the state owns 75,22% of the company's shares.
As a sign of protest, Turboatom employees, who are its shareholders, went to court with a demand to stop the payment of dividends and declare the decisions of the shareholders meeting on their payment invalid
Deputy General Designer of JSC Turboatom Alexander Burakov writes about this in a letter published in the government newspaper Uryadoviy Kuryer.
“This will deprive the plant of 180 million UAH, which should have gone to modernizing production, research work, training personnel and attracting high-quality personnel, promoting its products on world markets,” writes Burakov.
He claims that the fulfillment of key contracts of Turboatom, and, ultimately, the very existence of the largest engineering enterprise in Ukraine is under threat.
“The requirements of international bidding require the presence of free financial resources in the account of the tender participant. Taking into account the scope of the contracts, these amounts can reach tens and hundreds of millions of dollars, which may not be available after payment of dividends. The reputation of Ukrainian producers on world markets will be at risk,” writes Burakov.
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