The Czech prime minister has called for an investigation into the sale of Sanjeev Gupta’s carbon emissions in the country, saying the steel company had broken its promise not to do so.
Lubomir Zaoralek, Czech Foreign Minister, said a document issued on the page of his department Friday to apply for a business survey.
“Today I heard that Liberty Ostrava broke its promise and sold the money to pay more than Kcs1bn to Romania on the night of April 29-30,” he said.
The sale of carbon dioxide has caused a stir in the Czech Republic, with trade unions protesting the policy out of fear that the plant would lose money to make its work fresh.
The controversy comes amid growing concerns over what GFG, Liberty’s parent, has been trying to do after the collapse of its creditors and credit provider, Greensill Capital, in March.
The GFG has confirmed that the plant sold 1m in cash, valued at € 40 million, for the group’s sister plant, Liberty Galati, in Romania.
“The acquisition has taken place in today’s market, which is offered to Liberty Ostrava immediately, with the opportunity to redeem the money they will receive at a lower price in the future,” GFG said.
“The first legal request for more money for the company, and a number of measures to protect Ostrava’s business, was unannounced by agencies and the Czech government earlier this month,” the GFG added, acknowledging that it had managed to do so outside of trade.
The European carbon offensive policy is part of its study to adapt to climate change.
Major pollutants, such as metalworkers, are given a portion of the free carbon supply each year. The festivities are linked to each crop and are offered each February. Companies must pay enough to pay for one ton of gas by the end of April next year.
It is known that Liberty Ostrava currently owns Kcs5.6bn. Earlier this month the Financial Times reported that his sister’s plant in Romania encountered reduction of carbon debt. The market price of this item at the moment is very high.
Gupta’s GFG Alliance conference bought the largest steel in the country in July 2019 from ArcelorMittal.