Photo from UNIAN
Information about the buyer of EuroChem's Ukrainian assets is not indicated.
One of the world's largest agrochemical producers, Russian-based EuroChem, in May 2018 sold two distributing companies in Ukraine for $53 million, having lost over US$25 million.
This is stated in the company's financial statements for the first half of 2018, the Ukrainian news portal Liga.Net reported.
"Following the import ban on specific products at the beginning of the year in Ukraine and further sanctions later on against a large number of Russian suppliers, the Group decided to divest 100% of its distribution assets in the country (two Ukrainian companies) in May to an unrelated party," it said in the report.
By the end of May, the group sold 100% of the shares of both companies to an unrelated party for $53.064 million. The amount is due to be paid in five years; the discounted sum was $29.397 million. The group acknowledged its losses from the disinvestment were $25.26 million.
Read alsoEuroChem withdraws from Ukraine fertilizer market – media
Information about the buyer of EuroChem's Ukrainian assets is not indicated.
In 2017, Ukraine's Ministry of Economic Development imposed sanctions against the enterprises of the Russian group EuroChem and other suppliers of mineral fertilizers at the request of the Military Prosecutor's Office of the General Prosecutor's Office of Ukraine. According to the agency, the money paid by the so-called "Donetsk People's Republic" and "Luhansk People's Republic" in the Russian-occupied east part of Ukraine during the "customs clearance" of Russian fertilizers was subsequently used to finance terrorist formations there.
EuroChem Group AG said in its Q2/H2 2018 report that consolidated sales for the second quarter of 2018 were $1.31 billion, 24% higher than in the corresponding period of 2017. The second-quarter performance lifted sales for the first six months of 2018 to $2.67 billion, 11% above the $2.4 billion in the first half of 2017.