UkrLandFarming to close 6 egg farms due to long-lasting conflict with Ukrainian authorities
15 July 2020
Avangard, Ukraine-based egg producer and a subsidiary of the second largest Ukrainian agroholding UkrLandFarming, plans to close six out of a total of its 27 egg farms due to financial difficulties deepened by the long-lasting legal proceedings related to the companies’ owner Oleh Bahmatyuk.
Back in 2019, the Office of the Procurator-General of Ukraine and the National Anti-Corruption Bureau of Ukraine (NABU) reopened the investigation of the case against VAB Bank, which used to belong to Oleh Bahmatyuk, and accused him of inappropriate use of a $ 49 million stabilization loan from the National Bank of Ukraine issued in 2014. These proceedings heavily affected Bahmatyuk’s agricultural business - UkrLandFarming and Avangard.
Lately, the Pechersk District Court of Kyiv has abolished the abovementioned decision regarding reopening the case of Bahmatyuk. However, NABU has refused to close the case and continues investigation. Therefore, Avangard remains in an unfavorable position, unable to apply for a new loan or debt restructuring to improve its financial situation. The expected farm closure will affect 20% of Avangard’s production and 2,500 employees.