Shares of Rusagro, one of Russia’s largest producers of sunflower oil, pork, and sugar, plummeted by 30% on Thursday after authorities detained the company’s owner a day earlier, accusing him of embezzlement.
The Russian state agency TASS reported that 37-year-old entrepreneur Vladimir Moshkovich is suspected of embezzling up to 1 billion rubles ($11.93 million) through fraudulent business transactions, specifically related to the acquisition of assets from the oilseed company Solnechnye Produkty.
Police raided his offices and also detained his former associate, Maxim Basov, the ex-CEO of Rusagro, who faces similar charges of fraud and abuse of power.
The case stems from a corporate dispute over the purchase of rights to assets from Solnechnye Produkty worth 22 billion rubles ($262.46 million) which Rusagro acquired in 2018. The complaint that led to the charges was filed by Solpro Investment Ltd, the Cyprus-based parent company of Solnechnye Produkty, which claims that Moshkovich and Basov unlawfully seized valuable assets.
Namely, in 2018, Rusagro representatives signed a deal to buy 85% of Solnechnye Produkty’s shares at face value under the pretext of investment but were later accused of taking over its assets without fully meeting their obligations.
Moshkovich has vehemently denied the allegations, asserting that he committed no crime. In court, he insisted he had no intention of fleeing the country, particularly given his status under international sanctions, which prevent him from traveling abroad. Since 2022, he has been subject to sanctions imposed by the European Union and several other countries in response to Russia's war in Ukraine.
During a hearing at the Meshchansky Court in Moscow, defense attorneys requested bail set at 1 billion rubles, but the court rejected the proposal. Prosecutors argued that Moshkovich’s access to a private jet and his Israeli passport made him a flight risk. The court also cited his international connections and the likelihood of him absconding as reasons for his continued detention.
Moshkovich denied owning a jet and, in a passionate defense, stated that his assets were frozen due to sanctions, making it impossible for him to leave the country even if he wanted to. Despite the prosecution's claims, he insisted he had no intention of evading the investigation.
Meanwhile, the Rusagro group continues to operate as usual, maintaining that it adheres to all relevant laws and regulations while cooperating with the investigation. However, news of the raids and Moshkovich’s detention caused significant turmoil in the stock market, sending Rusagro’s shares tumbling nearly 30%.
