Nibulon has threatened to leave Mykolaiv if it does not receive «a land concession»

Nibulon has threatened to leave Mykolaiv if it does not receive a ‘land concession’. Photo: Press office of Nibulon Joint Venture LLC.

Nibulon has announced that it may reconsider its presence in Mykolaiv if no decision is reached regarding the granting of a concession for the lease of land potentially contaminated with explosive ordnance.

The statement was made during a meeting of the city council’s budget committee on 25 March, according to NikVesti.

It should be noted that this concerns over 50 hectares in the seaport of Mykolaiv, where Nibulon’s plant and terminal are located. The company is requesting a rent concession for land plots that cannot currently be used due to potential mine contamination.

The company’s representative, Director of Government Relations Oleksandr Dolzhenkov, directly linked future financial contributions to the city budget to the councillors’ stance on the exemption. In the absence of a positive decision, Nibulon plans to change the tax address of the company and its subsidiaries. In that case, taxes will go to other local budgets.

Oleksandr Dolzhenkov, Director of Government Relations at Nibulon. Screenshot from the committee meeting broadcast

«However, in the absence of communication, I think the owner will make a decision and withdraw part of the contributions, which amounts to 50–60 million to Kyiv. The speaker mentioned here that we operate in Kyiv, so we will pay in Kyiv. If there is no mutual understanding. I know the difference between resolving an issue and merely raising it. If there is no mutual understanding, Nibulon will react accordingly,» he noted.

Commission member Serhii Kantor responded to this, stating that the company representative’s words sounded like blackmail.

«So what, are they putting us on the spot (blackmailing us, — note)? We’ve heard this before. That’s all we needed,» he said.

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At the same time, Serhii Kantor emphasised that the approach to granting concessions must be systematic, not individual:

«If we are considering the issue of concessions, they must be considered in the context of the entire city, with indicators and conditions that specify the criteria for receiving them. A selective approach of any kind,» the councillor stressed.

It should be noted that Nibulon’s appeal refers to the possible contamination of land plots with explosive objects. It states that a non-technical survey of the water area was carried out. Experts also interviewed Nibulon employees and residents of Mykolaiv. They reported that the port area and adjacent waters had been repeatedly shelled both in 2022 and subsequently.

Furthermore, following the active phase of hostilities, a company diver inspected the seabed near the quay and discovered metal debris, likely from rocket-propelled grenades. In particular, parts of a cluster munition were found. During demining operations, State Emergency Service personnel also discovered another cluster munition approximately 550–600 metres from the surveyed area.

As a result of the survey, three zones were identified as potentially hazardous due to the possible presence of explosive objects.

It should be noted that the Budget Committee of the Mykolaiv City Council did not support the appeal by the company Nibulon regarding the granting of a concession on the payment of rent for land potentially contaminated with explosive objects. During the vote on drafting a decision regarding Nibulon’s appeal and bringing the matter before the session, seven committee members voted in favour, whilst four abstained.