The economic court in the Ukrainian region of Dnepropetrovsk has approved the decision of the court of first instance in Dnepropetrovsk for the legal collection of about UAH 205.59 million (approx. $23.4 million) from the Ukrainian steelmaker ArcelorMittal Kriviy Rih for prepayment of future ferroalloy deliveries in favor of ferroalloys producer Zaporozhye Ferro Alloys Plant (ZZF).
Following this decision, ArcelorMittal Kriviy Rih has stated that it intends to further appeal the decision of the Dnepropetrovsk economic court at Ukraine's supreme economic court.
As SteelOrbis previously reported, ArcelorMittal Kriviy Rih decided to halt purchases of ferroalloys from ZZF in the last quarter of 2008 citing the significant reduction of its production rates. However, ZZF, insisting on prolongation of the contractual partnership between the two companies, filed an action for the collection of UAH 205.59 million from ArcelorMittal Kriviy Rih. On July 15, 2009, the court of first instance in the Dnepropetrovsk region satisfied the stated claims in relation to payment of these funds in favor of ZZF.