What side­lined the Kharkiv Trac­tor Plant?

Kyiv Post Legal Quarterly - - Automotive - BY MATTHEW KUPFER KUPFER@KYIVPOST.COM

KHARKIV, Ukraine — From March 2016 un­til Jan­uary 2017, the Kharkiv Trac­tor Plant was forced to freeze its op­er­a­tions. For those 10 months, over 2,000 peo­ple were left with­out work. But the nearly year- long shut­down was not about tech­ni­cal ca­pa­bil­i­ties, nor ex­clu­sively fi­nan­cial con­cerns. Rather, an ex­ceed­ingly com­pli­cated mix of gal ing pol­i­tics, is­sues debts side­lined sur­round­ing cross- border the al­leged fac­tory. af­fairs out­stand- Soon and the lePen­sion Fund, the Fis­cal Ser­vice and even the Se­cu­rity Ser­vice of Ukraine, or SBU, were in­volved. With al­le­ga­tions of Rus­sian schemes and tax avoid­ance fly­ing, the case pro­vided an ex­am­ple of some of the “non-mar­ket”

A trac­tor from the Kharkiv Trac­tor Plant tills a field. The fac­tory's pri­mary clients are agri­cul­tural pro­duc­ers with be­tween 400 and 2,000 hectares of land and farm­ers in the de­vel­op­ing world. (Courtesy)

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