When someone is above the law… or one more attempt to destabilize operation of LLC SRZ

Company

On February 1st, being under pressure of the Security Service of Ukraine, Harbour Captain of Mariupol Commercial Sea Port issued the order “About prohibition of mooring operations at waterside structures (berths and dock pit) of LLC “SRZ” thereby blocking completely the enterprise operation and fulfillment of obligations to customers.  The basis for the abovementioned order was, according to the official, expiration of permits issued by the Shipping Register of Ukraine (31.12.2019).
However, for now there are no legitimate reasons for such a prohibition.
Since 2019 LLC “SRZ”has been actively interacting with State Enterprise “ASRZ” and the State Property Fund of Ukraine within the property transfer process for the integral property complex of Azov Shipyard from the balance of LLC “SRZ” to the balance of State Enterprise “Azov Shipyard”. Before the date of signing of Asset Transfer Form for the integral property complex of Azov Shipyard, all obligations on technical operation, maintenance, repair of facilities and equipment lie with the LLC “SRZ”. And during all this period the enterprise has been fulfilling its obligations on proper maintenance of integrity and keeping property complex, including waterside structures.
According to art.5 of the Law of Ukraine “About temporary measures for the period of executing of Antiterrorist Operation”, validity term of permission documents issued to economic entities that operate in a zone of execution of Antiterrorist Operation-AO (Operation of United Forces), which expires during execution of AO, is to be treated as a prolonged one for the period of AO execution. Therefore, all validity statements for waterside structures in the water area of LLC “SRZ” are valid to the present day.
On the part of state authorities another unlawful attempt is being made to cause economical paralysis of the enterprise already passing through business turbulence caused by internal and external challenges the region is overcoming.
At present, there are three cargo vessels on the road that have been already confirmed for loading and discharging from the berths of LLC “SRZ”. However, due to this prohibition fulfillment of obligations to the customers under these contracts is in jeopardy as well as fulfillment of other long-term and short-term contracts obligations in ship repair and cargo handling.
This poses a reasonable question: how come that LLC “SRZ” under supervision of all regulatory authorities could operate waterside structures “without permission documents”? It seems as if “the prohibition” is solely motivated by particular wish of “concerned parties” to destabilize operation of the enterprise.
After all, for over five years already all state and specialized authorities have been aware of the situation regarding legal collisions in resolution of the issue of the legal status of LLC “SRZ”. Moreover, hundreds of employees are suffering from these actions; direct damage to corporate image of the enterprise is being caused; cooperation between the enterprise and its counteragents and potential investors is being terminated. Currently the enterprise management team is doing its best to cancel this unlawful prohibition and to return the enterprise to its normal operation.
We hope that there are state authorities in Ukraine which, after sorting out the situation, will put an end to this abuse of power aimed to destabilize operation of LLC “SRZ”. We are determined to defeat our corporate reputation with all available legal remedies and all unlawful acts of appropriate authorities will be appealed.