Banks| Policies| Dodgy Deals| Campaigns
About us| Blog| Publications| Successes| Contact us| Donate
About BankTrack
Visit us
Organisation
Our team
Our board
Guiding principles
Team up with us
Our annual reports
Funding and finances
History
BankTrack in the media
Our privacy policy
Donate
2022-07-26 00:00:00
How China’s new complaints procedures can prevent ‘green’ ESG investments from harming local communities
2022-07-19 00:00:00
Jackdaw shows once again Shell is failing on climate. So why are its bankers failing to act?
2022-07-15 00:00:00
Can we stop the funding of more plastics?
2022-07-12 00:00:00
From fisherman to refugee, in part thanks to ING
2022-05-20 15:14:47
Seven financiers abandon TotalEnergies' EACOP pipeline in a week
2021-12-16 13:33:02
Cambo oil field "paused" following pressure on Shell & banks
2021-12-16 13:04:42
Equator Principles improve transparency after BankTrack shows the way
2021-11-02 11:03:26
ANZ launches human rights grievance mechanism in a first for the global banking sector
Connect
2022-07-05 00:00:00
Assessment of East African Crude Oil Pipeline (EACOP) and Associated Facilities’ Compliance with Equator Principles and IFC Performance Standards
2022-06-28 00:00:00
The East African Crude Oil Pipeline (EACOP): Finance Risk Update No. 3
2022-04-05 00:00:00
The BankTrack Human Rights Benchmark Asia
2022-03-30 00:00:00
Banking on Climate Chaos 2022
2022-03-08 00:00:00
BankTrack Annual Report 2021
2022-03-03 00:00:00
Locked out of a Just Transition: fossil fuel financing in Africa
See all publications
Browse
Home
Banks
Policies
Dodgy Deals
Campaigns
About
About BankTrack
Donate
Contact BankTrack
Publications
Victories
Follow Us
News
BankTrack blog
Facebook
Twitter Fossil Banks No Thanks Twitter Fossil Banks No Thanks Instagram
Affiliate Websites
Fossil Banks No Thanks
StopEACOP
Forests & Finance
Banks & Biodiversity
Drop JBS
Bank of Coal
Don't Buy into Occupation
Home › News
NGOs sound warning over one of year's largest IPOs
Start
Banks

By: Anna Grigoryeva, Platform-London
2010-04-28
London

Contact:

anna@platformlondon.org


Share this page:

Go to:
Start
Related Banks

The preliminary offering prospectus of Russian chemical fertiliser producer Uralchem glosses over several serious risks, says an international coalition of civil society organisations. Their research uncovers significant violation of environmental regulations by the company, which could lead the Russian Ministry of Natural Resources to force plant closures.

The coalition addressed the IPO bookrunners (UBS, Morgan Stanley, and Renaissance Capital) with an open letter urging them only to support the IPO if the company seriously commits to resolving its social and environmental problems. According to the report published alongside the open letter, Uralchem’s disregard for environmental safety has lead to several fatal accidents in the past year, and seriously damages the quality of air and water in the towns of Kirovo-Chepetsk, Voskresensk and Berezniki.

In Voskresensk, a 200m tall mound of phosphogypsum, illegally heaped by Uralchem’s plant, threatens to leak toxic phosphoric acid into Moscow River. In 2010 alone, the Russian Ministry for Natural Resources made three announcements that may herald a criminal court case against Uralchem and its Voskresensk plant.
This is only one in a host of problems (environmental crimes, financial machinations, neglect of equipment and employees, and various corresponding court cases) that, according to the NGOs, should ring loud alarm bells for the company’s bookrunners and potential future investors.


Uralchem’s plans to build a reprocessing plant in Dieppe, France, not only met strong resistance from locals and environmentalists (Les Verts, Europe Ecologie) but also attracted the attention of a number of MPs. This political risk has likewise been overlooked by the preliminary offering prospectus.


“We would like to warn investors who plan to put their money in a company with such a reputation. Uralchem have time and again acted completely irresponsibly towards Russian society, state, and minority shareholders, so we have serious reasons to doubt it will be more responsible to investors from abroad. We think that the money made on the IPO will be used to pay off the company’s debts, while Uralchem’s plants continue to choke whole towns and produce fertilisers which fail quality control by the lorry load,” – said Maxim Shingarkin, Fond Grazhdanin.

“We do not want to see our town suffering from toxic pollution. Or consumers in France and the UK endangered by Uralchem’s dubious quality fertiliser from Dieppe. Or investors in the West putting their money into this dangerous corporation. So an IPO should only be carried out when the company cleans up its act,” – said Iolanta Avril, Les Verts, Dieppe.


For further information and comment, contact
Boris Kagarlitsky (IGSO) +7 9037455106
Anna Grigoryeva (Platform-London) +44 7942044472

NOTES FOR EDITORS

1. United Chemical Company Uralchem OJSC, registered in Cyprus and controlled by businessman Dmitry Mazepin, is one of Russia’s leading chemical fertiliser producers. To cover its debts of over $1 billion, the company has announced plans to float $600m worth of shares on the London Stock Exchange – one of the year’s biggest IPOs according to The Times. http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article7109824.ece

2. The report has been researched in Russia by International Socio-Ecological Union, Fond Grazhdanin, and Institute for Globalisation and Social Movements. English edition supported by Platform-London (UK) and BankTrack (Netherlands).

3. Signatories to the open letter include
- International Socio-Ecological Union, Russia
- Platform-London, UK
- BankTrack, Netherlands.
- Les Verts, France
- The Berne Declaration, Switzerland
- Corporate Europe Observatory, Belgium
- Vyatka-Riverkeeper, Russia, member of Waterkeeper Alliance, USA
- International Accountability Project, USA 
- CounterCurrent, Germany    
- Lucha Indígena, Perú
- Fond Grazhdanin, Russia
- Institute for Globalisation and Social Movements, Russia

4. The open letter and report, as well as further information on the campaign in English can be found at http://www.banktrack.org/show/dodgydeals/uralchem

 

Go to:
Start
Related Banks

Related banks

Morgan Stanley United States

active

UBS Switzerland

active
Browse
Home
Banks
Policies
Dodgy Deals
Campaigns
About
About BankTrack
Donate
Contact BankTrack
Publications
Victories
Follow Us
News
BankTrack blog
Facebook
Twitter Fossil Banks No Thanks Twitter Fossil Banks No Thanks Instagram
Affiliate Websites
Fossil Banks No Thanks
StopEACOP
Forests & Finance
Banks & Biodiversity
Drop JBS
Bank of Coal
Don't Buy into Occupation
Vismarkt 15
6511 VJ Nijmegen
The Netherlands

Tel: +31 24 324 9220
Contact@banktrack.org
©2016 BankTrack                Webdesign by BankTrack and EASYmind
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted