HarvEast sells Crimean assets due to risks, Russian occupation

Donetsk-based HarvEast Holding whose shareholders are companies belonging to Ukrainian oligarchs Rinat Akhmetov and Vadym Novinskiy has closed a deal to sell its Crimean assets in connection with high risks in the agricultural sector in the peninsula, according to HarvEast Holding CEO Dmytro Skorniakov.
Another cause behind the decision was difficulties with the management of the company under Russian occupation, he said.
”The decision to sell the assets of HarvEast on the peninsula was taken in 2013 because low rainfall in that territory poses high risks to local agriculture. However, the deal was closed just now. Recently, it was almost impossible to effectively manage the assets because of the current situation,” the press service quoted Skorniakov as saying.
According to the report, HarvEast owned about 20,000 hectares of land in Crimea. Wheat and sunflower were the main crops grown there. Crimean company`s assets accounted for 10% of the total harvest. HarvEast does not disclose the sum of the deal and other parameters.
HarvEast Holding was founded in 2011 on the basis of agricultural assets of Mariupol-based Illich steel mill. Its core business includes crop and dairy farming. Its land bank is located in Donetsk region and occupies 97,000 hectares. Its cattle stock is estimated at 7,400 head.
Akhmetov controls the System Capital Management Group, while Novinsky is the founder of Smart Holding and owner of a blocking stake in Metinvest Holding.

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