Crimean shipyard passes into public ownership

The Zaliv yard was previously owned by Ukranian billionaire Konstantin Zhevago. However, a statement issued by the Crimean Ministry of Information and Communications indicated that Zhevago was discharged from ownership of the plant, because of issues concerning Zaliv’s past share dealings in the past. Sources close to Zhevago say that the plant was seized by workers from the Zelenodolsky shipyard, one of Russia’s largest yards, based in the Tatarstan Republic. Apparently Zeliv is now in the hands of the plant’s workers and Crimean military forces.

It is understood that Zhevago plans to appeal to the Russian and international courts on the grounds of illegal seizure of his property.

According to Andrew Skrynnik, Minister of Industrial Policy of Crimea, the current situation in the company comes as a result of a dispute between its shareholders and the Crimean government has no plans to intervene in the conflict.

According to him, the company has already been re-registered in Russia, however its management, so far, has been ineffective, which was reflected by delays in payment of wages, and only 5% of capacity being in use.

The Russian Ministry of Industry and Trade regards Zaliv as a good shipbuilding asset, of considerable interest to Russia, with a large dry dock and experience in construction of tankers and offshore platforms. Zaliv currently specializes in building tankers, drilling platforms, container ships and chemical tankers, mostly for Norwegian and Dutch customers. Since 2006, the plant has been part of Zhevago’s AutoKrAZ holding group.

In the meantime, an official spokesperson of the Zelenodolsky shipyard confirmed its interest in Zaliv and said the company plans to to place orders there. The seizure of the Zaliv plant followed the breakdown of negotiations between a group of Russian investors and Zhevago about sale of the yard.