Back
Automatically translated version. May contain inaccuracies compared to the original.
Deals to acquire assets on the scale of the Roshen corporation typically take between one and three years. Therefore, the fifth President of Ukraine, Petro Poroshenko, will be able to divest his businesses and separate power from business only toward the end of his presidential term.
This is reported in a piece by Alisa Yurchenko.
Recall that Poroshenko owns the “5 channel,” 82,5% of the Lenin Shipyard, 60% of the International Investment Bank, 59,9% of the Sevastopol Marine Plant, 55% of the sports club “5 Element,” 49,9% of the insurance company “Krayina,” and majority stakes in the Roshen corporation, the Piskivsky Glassworks, and the Agroprodinvest group.
Potential buyers of the President’s most famous asset—the confectionery corporation—could include multinational giants Nestle, Kraft Foods (Mondelēz International), and Mars. Of these, only Mars still lacks industrial capacities in Ukraine and might be interested. However, owners of global brands are not currently confirming any intention to participate in sale negotiations.
According to Gennadiy Radchenko, director of corporate relations at Nestle Ukraine, deals of this scale are finalized over the course of several years. “For example, Mivina, which our company acquired fairly recently. That process took from the start of negotiations to signing the agreement—almost one and a half years. And that’s not the end, because usually there remain issues that can arise afterward. It is impossible to check everything even over such a long period,” says Gennadiy Radchenko.
Given the time needed to find investors and prepare a deal, the head of state will not be able to sell his assets any sooner than toward the end of his presidential term.
“Ukrainian legislation does not provide a rule that the President cannot be a shareholder or owner of some business,” explains Vsevolod Volkov, partner at law firm Integrites. “Poroshenko begins the search for investment bankers; those bankers must tell him what price they can realistically organize this sale for. If the price is acceptable, then perhaps the deal will happen. If it is not acceptable, then that is a question for Petro Poroshenko.”
According to European practice, during the presidency Petro Poroshenko should transfer his assets to be managed by an independent management company.
“I cannot recall regulatory acts in developed countries where selling the property would be a mandatory condition,” emphasizes Oleksiy Reznikov, partner at the law firm Yegorov, Puginsky, Afanasiev & Partners. “As a rule, the common mechanism applied is transfer into management.”
Transferring ownership into management is one of the mechanisms to prevent conflicts of interest in state power—a criticism that has been leveled at Petro Poroshenko since the time of the first Maidan.
“Quotas in the sugar industry 2005 year. At one time the Orange team ‘got burned’ on this,” recalls Andriy Blynov, former editor-in-chief of the publication Expert. “They miscalculated on supplying imported cane then, and there was a lot said that many things were being done in the interests of Poroshenko’s corporation. That was one of the first major scandals.”
Petro Poroshenko holds shares in businesses mainly through the investment fund Prime Assets Capital, of which he is the sole owner. The fund is managed by the asset management company Fusion Capital Partners, associated with Petro Poroshenko’s business partners. In the days before the inauguration no orders regarding the sale of presidential assets were received by AMC Fusion Capital Partners. Deals to acquire assets on the scale of the Roshen corporation typically take between one and three years. Therefore, the fifth President of Ukraine, Petro Poroshenko, will be able to divest his businesses and separate power from business only toward the end of his presidential term.
This is reported in a piece of the anti-corruption project “Nashi Groshi” (Tuesdays at 22:00 on the ZIK channel).
Recall that Poroshenko owns the “5 channel,” 82,5% of the Lenin Shipyard, 60% of the International Investment Bank, 59,9% of the Sevastopol Marine Plant, 55% of the sports club “5 Element,” 49,9% of the insurance company “Krayina,” and majority stakes in the Roshen corporation, the Piskivsky Glassworks, and the Agroprodinvest group.
Potential buyers of the President’s most famous asset—the confectionery corporation—could include multinational giants Nestle, Kraft Foods (Mondelēz International), and Mars. Of these, only Mars still lacks industrial capacities in Ukraine and might be interested. However, owners of global brands are not currently confirming any intention to participate in sale negotiations.
According to Gennadiy Radchenko, director of corporate relations at Nestle Ukraine, deals of this scale are finalized over the course of several years. “For example, Mivina, which our company acquired fairly recently. That process took from the start of negotiations to signing the agreement—almost one and a half years. And that’s not the end, because usually there remain issues that can arise afterward. It is impossible to check everything even over such a long period,” says Gennadiy Radchenko.
Given the time needed to find investors and prepare a deal, the head of state will not be able to sell his assets any sooner than toward the end of his presidential term.
“Ukrainian legislation does not provide a rule that the President cannot be a shareholder or owner of some business,” explains Vsevolod Volkov, partner at law firm Integrites. “Poroshenko begins the search for investment bankers; those bankers must tell him what price they can realistically organize this sale for. If the price is acceptable, then perhaps the deal will happen. If it is not acceptable, then that is a question for Petro Poroshenko.”
According to European practice, during the presidency Petro Poroshenko should transfer his assets to be managed by an independent management company.
“I cannot recall regulatory acts in developed countries where selling the property would be a mandatory condition,” emphasizes Oleksiy Reznikov, partner at the law firm Yegorov, Puginsky, Afanasiev & Partners. “As a rule, the common mechanism applied is transfer into management.”
Transferring ownership into management is one of the mechanisms to prevent conflicts of interest in state power—a criticism that has been leveled at Petro Poroshenko since the time of the first Maidan.
“Quotas in the sugar industry 2005 year. At one time the Orange team ‘got burned’ on this,” recalls Andriy Blynov, former editor-in-chief of the publication Expert. “They miscalculated on supplying imported cane then, and there was a lot said that many things were being done in the interests of Poroshenko’s corporation. That was one of the first major scandals.”
Petro Poroshenko holds shares in businesses mainly through the investment fund Prime Assets Capital, of which he is the sole owner. The fund is managed by the asset management company Fusion Capital Partners, associated with Petro Poroshenko’s business partners. In the days before the inauguration no orders regarding the sale of presidential assets were received by AMC Fusion Capital Partners.
Based on materials from ZIK
Document: PDF proof of the original version of the news item "Продасть чи не продасть? Які шанси у Порошенка виконати першу обіцянку?". It records the publication content at the moment of the first scan, the preservation date and the source: Bihus.Info.
