The controversy between the Elayent-Kyiv Ukrainian-American joint venture and the Ministry of Defense and Ukrainian government spilled over to the international level when US Ambassador to Ukraine Stephen Pifer discussed the situation with Prime Minister of Ukraine Valery Pustovoitenko during their October 19 meeting. In 1993 the company signed a five-year contract with the Ministry of Defense on using of 220,000 tons of old ammunition pieces. The American side invested over $20 million to create enterprises for processing old ammunition and gunpowder in Ichnia (Chernihiv oblast) and Tsvetokha (Khmelnytsky oblast). However, last month the company was prohibited to export the products of processing, and the funds raised this way were planned to be its main income source. The firm fears that the Ministry of Defense will avoid prolonging the contract on utilization and has reported to America’s Overseas Private Investment Corporation (OPIC) that it would demand restitution if the government’s or Defense Minist
ry’s actions lead to liquidation of Elayent-Kyiv. In his turn the chairman of the Defense Ministry press service Col. Serhiy Nahoriansky told The Day that the Ukrainian side disagrees with the claims. Details will be disclosed later, because “now a working group has been formed, which is investigating the circumstances of the conflict and working out solutions to it.”
