Ukrainian president's Roshen company pulls out of Russia

By bne IntelliNews January 20, 2017

The Ukrainian confectionary company Roshen, owned by the country's President Petro Poroshenko, is closing down its factory in Russia's Lipetsk region and pulling out of the neighbouring country altogether, the company said on January 20.

The factory will be shut down in April 2017 as it cannot be sold because of an ongoing criminal case against it.

"Since 2013, the output of the Lipetsk factory has declined by two thirds due to an ungrounded ban by Rospotrebnadzor [federal sanitary watchdog] on imports of Roshen Ukrainian products to the territory of the Russian Federation," Roshen said in a statement quoted by Vedomosti on January 20.

After the closure of the factory, 700 people will be made redundant, the report said.

Poroshenko's assets, including Roshen, were finally put in a blind trust in 2016 following his election as Ukraine's president in 2014, when he also promised to sell his Russian assets. In 2016, Russia's Slavyanka and United Confectionaries were reportedly interested in acquiring the Lipetsk factory.

Poroshenko controls more than 100 companies registered in Ukraine and in foreign jurisdictions, according to his electronic declaration of earnings and assets, filed to the country's new national system of income declaration in 2016.

However, his drawn-out compliance with his earlier pledge to divest himself of his assets is seen as a factor to his decline in popularity, together with his failure crack down on endemic corruption.

In 2015, Russia's investigative committee opened a probe into the Lipetsk factory over alleged grand embezzlement. According to investigators, Roshen in 2011 exaggerated the costs of the construction of the factory building for tax refund purposes.

Related Articles

Norway's Scatec Solar to construct €85mn solar plant in Ukraine

Norway's Scatec Solar is going to begin the construction of a €85mn solar power with a total capacity of 83 MW in Ukraine's Cherkasy region this year, according to the company's June 12 ... more

Macedonia blocks bank accounts of Kazandol project investors

The bank accounts of Copper Investments (COPIN), the investor in Macedonia’s Kazandol mining project via its subsidiary Sardich MC, have been blocked since April 12 and the company’s employees ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Dismiss