Siegfried Wolf withdraws investment in Kharkiv Tractor Plant, Ukraine

Vienna (OTS) - Austrian investor Siegfried Wolf announced today that
he will not complete the acquisition of a stake in Ukrainian-based
Kharkiv Tractor Plant (XTZ) due to incomprehensible obstruction by
Ukrainian government officials. For more than six months, intensive
efforts to change the shareholder structure of XTZ have failed. The
company is being exposed to a massive campaign which is obviously
intended to drive out foreign investors. However, no charges relating
to the alleged economic crimes have been brought so far.

Mr. Wolf commented on his decision as follows: “Over the last few
months Mr. Yaroslavsky’s DCH Group and me jointly have been trying to
complete the acquisition of a stake in XTZ. Our aim was to restore
production at XTZ, which had been severely damaged and brought to the
verge of bankruptcy by irresponsible actions by the Ukrainian
authorities. Recently it became obvious to me that, despite our joint
efforts, the unprecedented campaign of pressure launched against XTZ
by certain Ukrainian government officials is not going to end. The
Ukrainian Antimonopoly Committee has rejected DCH’s application for
approval of the acquisition of a controlling stake in the Plant three
times. Since antimonopoly approval is a condition precedent for
completing the acquisition of my minority stake in XTZ, I can only
interpret this as a demonstration of a lack of interest on the part
of Ukrainian authorities in attracting best European business
practices, and a blunt disregard for the interests of foreign
investors. In light of that, I have decided - with regret - not to
complete the acquisition of the minority stake in Kharkiv Tractor
Plant.”

Siegfried Wolf is a renowned Austrian investor, a shareholder in and
a member of the boards of directors of several international
automotive companies, banks and industrial corporations, as well as a
former CEO of Magna International Inc.

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