Illegal Seizure of Property of IES-Holding Attempted in Ukraine

"Moreover, we have grounds to suspect that Mr. Demyanyuk may be guilty of misappropriation of cash funds of LLC GAZEKS-Ukraine in the amount of USD 5 million. We will disclose more detailed information after the audit of financial and economic activities of the company. The performance of such audit was strongly obstructed by the fired senior manager" - says Marat Bashirov, Senior Vice President and Member of the Management Board of CJSC IES.
CJSC IES qualifies the actions of the said group as a raider attack performed in the territory of Ukraine with the purpose of appropriating the assets owned by the Russian investor. CJSC IES also believes that such actions of a mercenary manager not only represents a direct violation of law but also undermines the financial and economic standing of gas distribution companies of the Ukrainian division managed by LLC GAZEKS-Ukraine. which threatens security of gas supplies to the consumers of four regions of Eastern Ukraine.
In order to prevent the unlawful activities of Vitaly Demyanyuk, the Extraordinary Meeting of Members of LLC GAZEKS-Ukraine. resolved on March 9, 2010 to remove him from the office of General Director of the company. Aleksandr Olkhovik was appointed Acting Director of the limited liability company. He was previously Deputy General Director of the company.
Vitaly Demyanyuk was personally present at the Extraordinary meeting of members of LLC GAZEKS-Ukraine. This fact is beyond doubt and can be confirmed by a number of witnesses including representatives of Narell Enterprises Ltd. which directly owns 99.9956% of UF OOOGAZEKS-Ukraine and which represents the interests of CJSC IES.
The Articles of Association of LLC GAZEKS-Ukraine. determine that the Extraordinary meeting of members may be convened without their prior notification in the event that representatives of all the Company's members were present at the Extraordinary Meeting.
"Our company intends to take all necessary measures to protect our lawful rights and interests, as well as to penalize Vitaly Demyanyuk, the former General Director of LLC GAZEKS-Ukraine, and his possible accomplices" - the Senior Vice President of CJSC IES pointed out.
With this purpose, IES-Holding is preparing the relevant documents to apply to the General Prosecutor's Office of Ukraine to initiate a criminal case against the corresponding persons.
LLC GAZEKS-Ukraine. owns shareholdings in OJSC Kharkovgorgaz, JSC Kharkovgaz, OJSC Krivorozhgaz, OJSC Dneprogaz, and OJCS Donetskgaz.