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TELIASONERA CORRUPTION PROBE

BUSINESS

TeliaSonera rebuffs minister’s ‘time-out’ call

TeliaSonera will not order senior managers accused of corruption stemming from the Nordic telecom giant's dealings in Uzbekistan to take time off, despite calls by a Swedish minister who called recent revelations "very serious".

TeliaSonera rebuffs minister's 'time-out' call

Norman urged the board to consider the move in order to safeguard the reputation of company, which is partially owned by the Swedish state.

TeliaSonera faces claims that employees took bribes and that several of them knew they were dealing with Gulnara Karimova, the daughter of Uzbekistan president Islam Karimov, in setting up its relationship with a business partner in the central Asian market.

The suspicions stem from a September report by Sveriges Television (SVT) investigative news programme “Uppdrag granskning” claiming that TeliaSonera had paid 2.2 billion kronor ($333 million) to Takilant Limited to obtain a 3G licence in Uzbekistan and a 26 percent stake in mobile carrier Ucell.

Takilant is owned by a 22-year-old woman with links to the daughter of the Uzbek dictator.

Several emails between senior managers within the company mention Gulnara Karimova by name and have been presented as evidence by prosecutors in the ongoing investigation.

Meanwhile, shareholders appear to be following the case closely. The Stockholm Stock Exchange has asked the company for more information, reported Dagens Nyheter (DN) this week.

“We demand a press release from companies regarding anything that could affect the share price, including criminal suspicions,” stock exchange spokesman Carl Norell told the newspaper, without specifically confirming that they had contacted TeliaSonera.

However, a company official confirmed TeliaSonera had been contacted by stock exchange officials.

Efforts to investigate the claim have also taken place internally in the company. But Sveriges Television (SVT) alleged in December that an audit into whether certain employees had taken bribes, as claimed by businessmen in Uzbekistan, was superficial and insufficient.

The auditors, Ernst & Young, themselves said in their final report that the audit “was not compatible with widely accepted standards”.

An independent Swedish auditor, Einar Häckner, called the final review a ”whitewash,” aimed at clearing the company of any allegations of wrongdoing.

“I interpret this as wanting to open closets where you know there are no skeletons hiding,” he told SVT.

Earlier in the week, Norman said evidence showing the TeliaSonera managers knew they were dealing with Karimova were “very serious”.

“As I’ve said before, the most important thing is that the company gets to the bottom of this and that all the information comesout so that the owners and the public gets a picture of what happened,” he told TT in an email.

TeliaSonera has denied it is not taking the allegations seriously.

”We’ve looked into this, Ericsson has looked into it, as have Ernst & Young, Control Risk and Price Waterhouse Cooper and everyone agrees. There is nothing to suggest fraud has taken place,” press secretary Salomon Bekele wrote in an email to the TT news agency in December.

On Tuesday, the company remained resistant as the minister suggested that certain senior managers take some time off.

“[We are] continuously following up on the question of suspicions related to TeliaSonera’s investment in Uzbekistan,” board chairman Anders Narvinger responded in a written statement.

He said the board would not order any senior executive to take time off unless more information is uncovered in the ongoing investigation, he added.

“In the event of new information, which leads to a strengthening of the degree of suspicion against senior executives, the board will of course consider the need for a time-out.”

TT/The Local/at

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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