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Lipetsk factory will be closed for economic and political reasons, - press secretary
16:08, 20 January 2017
Lipetsk factory will be closed for economic and political reasons, - press secretary

This means that production activities and infrastructural object will be temporarily closed down

16:08, 20 January 2017

112 Agency

The press service of Roshen corporation (owned by Ukrainian President Petro Poroshenko) confirmed the information about the closure of Lipetsk confectionary factory in Russia to "112 Ukraine"  TV channel. Press Secretary Kateryna Makedonskaya reported that this decision was taken for economic and political reasons.

"Being a little more specific, the closing is scheduled for the end of April this year, the total preservation of industrial and infrastructure facilities is meant under the closure. Starting from 2013, production at the Lipetsk confectionery factory was reduced thrice. Range of products decreased. Media actively discredited the activity of the factory, the authorities in some regions put pressure on the trade organizations for the sale of products of the Lipetsk confectionery factory. There were massive layoffs and now remaining 700 people were already informed about this decision. The factory was seized by the Russian investigative Committee, which makes it impossible to sell due to unreasonable charges over taxes. Factory is to be closed, the property will be laid up. Factory will remain in this condition," the press secretary said.

The Roshen Corporation, one of the largest Ukrainian confectionery manufacturers, including Kyiv, Mariupol (Donetsk region), Kremenchug (Poltava region) and two Vinnytsia confectionery factories, Dairy Plant Bershadmoloko and Litinskplemzavod (both based in Vinnytsia region). It also runs confectionary facilities in Klaipeda (Lithuania), Lipetsk ( Russia), and Bonbonetti Choco (Hungary).

The owner of the corporation is President of Ukraine Petro Poroshenko. During the election campaign he promised to sell Roshen, hiring for that the investment firm Rothschild and Ukrainian investment group Investment Capital Ukraine (ICU). However, due to lack of buyers, the contract was signed in January 2016, in accordance with which Poroshenko gave his share of the corporation to an independent blind trust.

As it was reported earlier, Roshen Corporation decided to stop the production activity of Lipetsk confectionery factory (Russia).

Related: Poroshenko to hold speech in Davos

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