UZ awards no-bid $17.5 million contract to Zelenskyy’s aide partner company
Ukrainian Railways (UZ) has signed a deal to purchase UAH 666 million ($17.5 million) worth of rails from Minerfin-Trans company, which at a time was in partnership with Deputy Head of the President's Office Rostyslav Shurma, Ukrainian outlet Nashi Hroshi reported on Jan. 9.
Minerfin-Trans is owned by Slovak company Minerfin (85%) and Cyprus-based Murelances Enterprises Limited (15%). Minerfin has ties to Czech company Moravia Steel, known for manufacturing rails. It is one of the largest iron ore carriers in Ukraine and before the war acted as a partner of Zaporizhstal, operating the Zaporizhzhya Iron Ore Plant.
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Notably, Shurma headed Zaporizhstal in 2012-2019, and now serves as deputy Chief-of-Staff to Ukrainian President Volodymyr Zelenskyy.
"I want to thank our Slovak partners, the company Minerfin, which, despite all the difficulties, continues to believe in our country, believe in our industry and invest hundreds of millions of hryvnias in the development of the Zaporizhzhya Iron Ore Plant together with the metallurgical plant Zaporizhstal," Shurma said when the partnership was inked.
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The UZ rail deal comes at a steep price — $1,848 per unit of steel rails (including VAT), marking the highest cost this year.
UZ had previously opted for cheaper alternatives, ordering rails from Estonian Skinest Rail ($1,569, no VAT) and Chinese-made rails from Dorinvestcapital ($1,644 plus VAT). Additionally, another batch of Chinese rails ($1,094-1,240 plus VAT) faced disruptions due to allegedly internal problems at the Pangang Group Panzhihua Steel & Vanadium manufacturer, prompting UZ to explore other options.
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"Whatever it was, UZ delayed the process of signing contracts with the winners of the auctions from September to December,” Nashi Hroshi said.
“By the end of the year, the winners of the auction, with all their desire, could no longer make deliveries."
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Read the original article on The New Voice of Ukraine
