USM Group Considers Legal Action Over Iron Ore Expropriation
Legal Dispute with Ukraine
USM Group, which owns major Russian metals producer Metalloinvest, is planning legal action against parties buying iron ore expropriated by Ukraine. On September 25, the High Anti-Corruption Court of Ukraine (HACC) ruled to confiscate 165,000 tonnes of iron ore belonging to Metalloinvest Trading AG, USM’s Swiss trading arm.
USM’s Response to the Court’s Decision
USM criticized the court ruling as “unlawful” and claimed the confiscation was part of Ukraine’s effort to legalize private property appropriation. The company warned it would pursue international legal action against both Ukrainian authorities and potential buyers of the seized iron ore.
Background of the Dispute
Before Russia’s military operation in Ukraine, Metalloinvest shipped iron ore via Ukraine to other countries. However, shipments were detained in early 2022 by Ukrainian authorities, who later seized the cargo, alleging tax evasion and fabricated cases. The HACC case began in July 2024, following a request by Ukraine’s Ministry of Justice under the “Law on Sanctions.”
Sanctions and Media Controversy
Alisher Usmanov, a Russian-Uzbek billionaire with a stake in USM, was sanctioned by Western countries in 2022 over alleged ties to the Kremlin, which he denies. Recently, the German newspaper Münchner Merkur retracted an article suggesting Metalloinvest smuggled raw materials to Russia, calling the claim unsubstantiated.
Additional Property Seizures
This week, the HACC also ordered the transfer of Peter-Service Ukraine, a subsidiary of Russian firm Nexign, to Ukrainian control. USM and Metalloinvest vowed to defend their rights and seek compensation for reputational damage.
International Legal Challenges Ahead
USM argues that foreign-owned properties in Ukraine are protected under international law, allowing them to contest the HACC decision. Representatives from the company’s legal department confirmed plans to challenge the ruling both in Ukrainian and international courts.