Roshen to halt factory in Russia's Lipetsk – media

Roshen Confectionery Corporation has decided to stop operations of its factory in the Russian town of Lipetsk.

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The decision was made for economic and political reasons, the company press service wrote.

A full stop of production and any further maintenance of industrial and infrastructure projects is scheduled for April 2017.

Read alsoRoshen sees its Lipetsk confectionery as 'Putin's hostage'According to Liga.net, which also cites Roshen press service, since 2013, production volumes at the Lipetsk confectionery factory have been reduced threefold. The reason for this was the sharp decline in the range of  products after the unjustified ban by Rospotrebnadzor in 2013 of imports of the Ukrainian Roshen products to the Russian Federation, active discrediting campaign against the factory in the Russian and Ukrainian media, the pressure of the authorities in some regions on the trade organizations due to the sales of products of the Lipetsk confectionery factory, as well as the decline in the purchasing power of the population.

It is also emphasized that due to the decline in production output, the factory faced constant layoffs. The remaining staff (about 700 people) have already been informed about the upcoming halt of operations. The notification of a mass layoff will be submitted to the Lipetsk employment service shortly.

Read alsoRoshen's Russian factory insists on return of RUB 181 mln paid to Russian budgetAs UNIAN reported earlier, the seizure of property of the Lipetsk confectionery factory, imposed by the investigative committee of the Russian Federation in the framework of the criminal case, made it impossible to sell the factory.

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