Closes Roshen Lipetsk confectionery factory

Roshen Corporation has decided to stop production activities of the Lipetsk confectionery factory in Russia. “Full stop production and conservation of industrial and infrastructure projects planned for April 2017. The decision was made for economic and political reasons”, — the press-service of the company.

It is also reported that the seizure of the Lipetsk confectionery factory, imposed by the investigative Committee of the Russian Federation in the framework of the criminal case, made the sale of the factory impossible.

The Roshen note that, starting in 2013, production at the Lipetsk confectionary factory has decreased three times. The reason for this was the sharp drop in range after the unjustified ban by Rospotrebnadzor in 2013, imports of Ukrainian Roshen products to the Russian Federation, and active discrediting the activities of the factory in Russian and Ukrainian media, and the pressure of the authorities in some regions on trade organizations due to sales of products of the Lipetsk confectionery factory, and diminished overall purchasing power of the population.

Also it is underlined that in connection with decline in production at the factory continued mass layoffs. The remaining staff (about 700 people) has been informed about the upcoming closure of the factory. Required notice of mass layoffs will be submitted to the Lipetsk center of employment in the near future.

We will remind that the Prosecutor’s office and Rosprirodnadzor accused the Lipetsk confectionery factory Roshen in “non-compliance with environmental requirements.” As reported at the Prosecutor’s office of the Lipetsk region, on the territory of the factory found a warehouse full of construction debris.

Earlier it was reported that the Corporation Roshen in the years 2014-2016 has received more than $72 million of dividends from its Lipetsk confectionery factory. Also Interdistrict Inspectorate of the FTS for major taxpayers in the Lipetsk region refused to accrual of JSC “Lipetsk confectionery factory “Roshen” more than 70 million roubles of the profit tax and fines in 2013.

Also, the Russian “daughter” confectionary concern Roshen in Lipetsk in 2015 paid dividends in the amount of 2,251 billion rubles (almost $ 34 million at current exchange rate).

Poroshenko after the inauguration of the President of Ukraine announced its intention to sell its assets. It was also reported about his plans to transfer confectionary concern to the trust, the investment company Rothschild, previously hired to search for buyers, as well as the sale of Roshen management in installments, if other buyers it is not there.