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Global Steel seeks legal review of Vorskla accord with Kremikovtzi
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Saturday, 19 Jul 2008
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Bloomberg reported that Global Steel Holdings Ltd, owner of Bulgaria's biggest steel mill Kremikovtzi, wants Sofia's prosecutor to examine whether a supply contract with Vorskla Steel is legal.

As per report, Global Steel an e mail said that “Members of the management board were subjected to humiliating mental pressure to sign the proposed agreement. The competent authorities should take the necessary steps to clarify whether and to what extent the said events are in line with the legislation of the Republic of Bulgaria.''

However, Mr Max Prasolov head of Credit Group's press office, which owns Vorskla Steel, said that “The allegations of coercion are unrealistic' because Kremikovtzi management confirmed the agreement. The agreement was reconfirmed and signed by three members of Kremikovtzi's management board this morning.”

The accord was signed at midnight and a similar agreement with ArcelorMittal was dissolved. Workers protesting at two months of unpaid wages had stopped the management from leaving the mill's headquarters near Sofia until they signed Mr Zhevago's contract.

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