Poroshenko sets up three offshore companies as Roshen assets restructuring

Monday, April 4, 2016 - 09:30 (EEST) Section: Latest news

Ukrainian President Petro Poroshenko has begun to restructure Roshen`s assets, having created three offshore companies, while his Roshen assets haven`t been transferred to a trust despite his earlier announcements, according to the Slidstvo.info program on hromadske.tv.
”The actual transfer of assets to the trust requires a large number of legal formalities be observed. At the moment, a legal advisor ensures observance of such formalities,” says ICU Managing Director Makar Paseniuk, who was authorized by the Presidential Administration`s press service to respond to journalists` requests regarding Poroshenko`s business affairs, journalist Anna Babinets reported in her investigation titled ”The President`s Double Life.”
The letter from ICU mentions the trust in the future tense only.
The answer to a question about Prime Asset Partners Limited (BVI), which was set up by Poroshenko in August 2014, suggested that there were several offshore companies.
”Prime Asset Partners Limited was established in summer 2014 in the course of the corporate restructuring launched as preparatory work for sale of Roshen Group. After its establishment, the company was not engaged in any activity except for the one mentioned below. In autumn 2014, Prime Asset Partners Limited founded Cyprus-based CEE Confectionery Investments Limited., which in turn founded Roshen Europe BV in the Netherlands,” the answer reads.
Citizen of Ukraine Petro Poroshenko is mentioned as the only shareholder of Prime Asset Partners Limited.
At the same time, the president did not mention his new offshore company and ”technical vehicles” in the income declaration for 2014 and 2015, which is viewed as another violation of the Ukrainian laws.
Mossack Fonseca records specify that Prime Asset Partners would serve as the holding company for the Ukrainian and Cyprus companies of Roshen confectionary corporation, with ”proceeds from the business trade” of the corporation being its source of funds.
According to an email from Paseniuk, this is because ”shares in (BVI) Prime Asset Partners Limited have no par value, and the declaration for 2014 required only shares having a par value to be included.”
”But the documents obtained by the Organized Crime and Corruption Reporting Project (OCCRP) show that starting from the registration date of August 21, 2014, Prime Asset Partners Ltd.`s shares indeed had a total value of US$ 1,000 and listed Poroshenko as the sole shareholder. Its Cyprus subsidiary CEE Confectionary has shares with the total value of EUR2,000, while the Dutch Roshen Europe has the statutory capital of $85. While the amounts are small, they still must be reported, experts say. When Poroshenko`s advisers were asked about the discrepancy, the advisers told an OCCRP reporter that his information was inaccurate,” the OCCRP wrote in a material about Poroshenko.
However, the journalists received a document confirming that the president owns 1,000 shares worth $1 each.
Regarding the use of offshores, Paseniuk said: ”As a matter of practice, Ukrainian businesses commonly use similar structures. Therefore, incorporation of these companies is in accordance with the market practice in Ukraine for businesses aiming to sell to strategic investors or to enter the capital markets, launch IPO, etc. In this structure, Prime Asset Partners Limited is merely a technical vehicle.”