About SCM

SCM focused on structuring Mr Akhmetov’s initial investment portfolio and introducing best practices in management, reporting and corporate governance. It also began modernising its industrial assets.

SCM focused on adopting international management standards at all key assets and continued working to improve underperforming businesses. It also embarked on a long-term strategy to drive growth and business efficiency by establishing a vertically integrated production structure and building a world-class management team.

SCM launched a programme to further improve its structure and strengthen corporate governance. The first step was to establish two industrial holdings, Metinvest (in the mining and metals sector) and DTEK (in energy). In addition, the company moved into the banking and insurance sectors, and set out to develop new ones: media, real estate and telecommunications. SCM also started producing consolidated accounts audited to International Financial Reporting Standards (IFRS).

SCM established a clear development strategy to expand its businesses through internal growth and new acquisitions in the main strategic areas. As part of this, it started divesting some of its non-core assets.

SCM recovered rapidly from the global financial crisis of 2008-09, largely due to strategic leadership capabilities developed in previous growth phases. These were grounded in a balanced approach to doing business, effective decision-making, a conservative borrowing approach, clear priority-setting, and a talented, professional team.

SCM acquired more mining and metals and energy businesses and became the largest privately owned investment company in Ukraine. Back then, it accounted for around 3.9% of Ukraine’s GDP, employed around 300,000 people and also operated in Italy, Bulgaria, the UK and the US. It continued its strategy of strengthening vertical integration, streamlining its corporate structure and enhancing governance.

When Russia initially invaded Ukraine in 2014, many SCM’s assets were in the middle of the hostilities. During this challenging period, the companies’ focus was on safeguarding employees and people in its communities, ensuring business continuity and maintaining production capacity. Our employees risked their lives to restore critical services and facilities damaged in the initial conflict in south-eastern Ukraine. Sadly, between 2014 and 2017, Russia unlawfully expropriated all of SCM’s assets in Crimea and the parts of the Donetsk and Luhansk regions that it temporarily occupies.

Since Russia’s full-scale invasion of Ukraine, SCM companies have worked to maintain operations whatever the situation. Key achievements have included DTEK’s central role in maintaining power supplies throughout Ukraine during Russian attacks on energy infrastructure, as well as launching the EUR450 million expansion of Tyligulska Wind Power Plant, the largest investment in the country’s energy system to date. DTEK is also expanding internationally, supporting the ‘green’ transition in Eastern Europe, while Metinvest is advancing a US$2.8 billion ‘green’ steel plant in Italy.

During the first three years of the Russian full-scale invasion, SCM’s businesses, the Rinat Akhmetov Foundation and Shakhtar FC allocated UAH12.8 billion (US$350 million) to support the country, the military, and civilians. Key focus areas include support for the Armed Forces of Ukraine by providing defensive equipment; humanitarian aid for civilians; community initiatives; charitable and advocacy projects; and assistance to the defenders of Mariupol.

In addition to direct aid, SCM and its enterprises pay taxes to budgets at all levels to promote and support Ukraine’s economic stability. Since the beginning of the full-scale war, SCM has paid over UAH214 billion (nearly US$6 billion) in taxes in the country.