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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