Arcelor-Mittal and Ukrainian Government are to Return to Constructive Dialogue

By Worldwide News Ukraine, PRNE
Monday, October 11, 2010

KIEV, Ukraine, October 12, 2010 - The representatives of Arcelor-Mittal have expressed their
willingness to get back to negotiations of the investment agreement with the
Ukrainian government. They made this statement after the Kyiv City Commercial
Court had droppedthe case upon the withdrawal of the General Prosecutor's

Cristophe Cornier, Vice President and Management Board Member,
Arcelor-Mittal, said "We welcome the decision to stop these proceedings. We
are grateful to the Cabinet of Ministers for their consistent support
throughout this process. We welcome the government's proposal for discussions
on our operations and projects in Ukraine."

Speaking on this case before the French businesses last
Friday, 8 October, the Ukrainian President Viktor Yanukovych pledged that
there would be no re-privatization of the steel mill and that the ownership
rights of the largest foreign investor in the Ukrainian economy would remain
intact. The President predicted that the court proceedings would be closed

Now the representatives of ArcelorMittalKryvyiRih, the
Ukrainian subsidiary of the international steel group have already confirmed
they are ready to restore the negotiations with the Ukrainian government. "If
the State Property Fund or Ukrainian Government has any proposals or critical
comments, we are always ready for an open dialogue at the negotiations table
in order to find a compromise solution", Mr. RinatStarkov, the Director
General of ArcelorMittalKryvyRih, told the press today.

Bearing in mind the President's position, a reciprocal step
forward is also expected from the Ukrainian Government.

The case of Arcelor-Mittal came up as the Prosecutor General's
office had alleged that ArcelorMittal violated terms of its 2005 purchase of
the eastern Ukrainian plant by subsequently delaying investment in it without
valid permission. Arcelor-Mittal said it reached a legal agreement with
Ukraine's State Property Fund to put off investment commitments after
declaring force majeure in the global downturn of 2008-9.

The international business community has been closely watching
the developments of the case around Ukraine's largest foreign investment,
considering it as an indicator of the country's overall investment climate.

For more information, please contact Natalya Shulevskaya,
+380-633776645, news at, Project Manager at Worldwide News

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