Russia to privatize Roshen's Lipetsk factory
The Russian government has decided to privatize the Lipetsk confectionery factory of the Roshen corporation, founded by former Ukrainian President Petro Poroshenko. The company's assets were transferred to Russian state ownership following legal proceedings.
The Cabinet of Ministers has included 99.9% of the shares of the factory and its related company in the privatization plan for 2026–2028. The value of the future deal and potential buyers have not yet been disclosed.
Assets transferred to the state after court ruling
According to the provided information, legal proceedings were initiated in February 2024 at the initiative of the Russian Prosecutor General's Office.
As a result, shares and stakes belonging to Roshen structures in Lipetsk were transferred to the ownership of the Russian Federation. Later, Dmitry Aristov, Director of the Federal Bailiff Service, announced that the factory's shares had officially been transferred to the state.
99.9% of shares included in the plan
The Russian Cabinet of Ministers has added the following assets to the privatization plan:
Lipetsk confectionery factory;
Roshen LLC;
99.9% of the shares of these structures.
Privatization is planned to take place between 2026 and 2028. However, no detailed information regarding the sale date, starting price, or the format of the process has been provided.
Factory ceased production in 2017
Roshen is one of the world's largest confectionery manufacturers.
In 2017, the company announced the closure of the Lipetsk factory, citing political and economic reasons. Since then, production at the enterprise has been halted.
At that time, the corporation estimated its remaining assets in Russia at approximately $200 million.
Key information | Indicator |
|---|---|
Year factory closed | 2017 |
Year assets transferred to the state | 2024 |
Share to be privatized | 99.9% |
Plan period | 2026–2028 |
Previous asset valuation | Around $200 million |
What will be the future of the enterprise?
Since the factory has not been producing goods for a long time, it is currently unknown whether a new investor will restart the enterprise or use its assets for other purposes.
Also, the amount of funds to be generated from the privatization and which companies will participate in the sale have not been disclosed.
Petro Poroshenko has been included in the list of individuals involved in extremist activities or terrorism by Russia's Rosfinmonitoring. This is a legal classification by Russian authorized bodies.
Do you think the Lipetsk factory, which has been idle for many years, will resume operations under a new investor? Leave your opinion in the comments.
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