Kryvyi Rih, February 9, 2021 Yesterday, February 8, employees of the Security Service of Ukraine returned to the enterprise to inspect the mining and processing plant. As a law-abiding and responsible business, ArcelorMittal Kryvyi Rih has always actively cooperated with all law enforcement agencies, especially closely over the past two years. Earlier, the SBU has already inspected about “objects of steel-making, sintering, coke-chemical production, got acquainted with the documentation of the enterprise. This time the visit of law enforcement officers is planned to the mining department of the enterprise in connection with” alleged tax evasion and understatement of rent payments in 2015-2019. Today, representatives of the SBU plan to continue investigative actions and make an overview of the territory of the company’s interiors with the selection of samples of raw materials. The company categorically rejects unfounded accusations, considering the case unlawful, and the approach of regulators to business is obviously selective. decisions of the Shevchenkovskiy District Court, Kiev, POV “related to tax payments. Let us recall the history of the issue. Back in 2019, the Office of Large Taxpayers carried out a planned audit of the enterprise for compliance with tax laws for the previous 4 years. It is important that the results of such an audit were announced even before its completion. After the audit, the supervisory authority increased the tax liabilities “Liabilities of ArcelorMittal Kryvyi Rih” by UAH 7.9 billion. One of the largest additional charges ArcelorMittal Kryvyi Rih received was in relation to rent for the use of subsoil. The company took advantage of the legal basis to appeal the decisions received to the State Tax Service of Ukraine. After an impartial consideration of the complaint, the additional accrued obligations “The obligations were partially canceled. The decision of the State Tax Service was based on the established judicial practice on such additional charges. Courts of different instances have repeatedly pointed out that” the object of the rent is mineral raw materials – iron ore. ArcelorMittal Kryvyi Rih considers this method of calculating the rent to be justified. Similar inspections often ended in court in favor of business and at significant costs for the state budget through compensation for court costs for the consideration of such cases. Thus, the relevant decisions were made in favor of the main industrial enterprises of Krivoy Rog. We emphasize that the fact of canceling a part of additional charges for tax audits in accordance with the procedure established by law cannot be considered a crime. On the contrary, an administrative appeal is an important guarantee of the rights and legitimate interests of a business. ArcelorMittal Kryvyi Rih will appeal a part of the canceled additional charges in court. The trial is ongoing. Since such tax obligations “Obligations are inconsistent, the company cannot be held liable for alleged evasion of their payment under Article 212 of the Criminal Code of Ukraine. Such actions of law enforcement agencies directly violate the principles of taxation in Ukraine, in particular, the presumption of the legality of the actions of the taxpayer. The quarantine moratorium on business inspections was lifted in Ukraine in December 2020. It is expected that, in addition to investigative actions, which have become more frequent in companies, unscheduled inspections by regulatory authorities will also increase.After the unprecedented 2020, having ensured the payment of taxes and fees in full, stable work and personnel, large Ukrainian business risks entering a new zone of “turbulence” created by state authorities. We see this as confirmation that the promised improvement of the investment climate did not materialize. ArcelorMittal Kryvyi Rih continues to monitor the development of existence and is ready to inform the media about the pressure on the foreign investor himself, which does not weaken and increases annually.