Makfa, a global pasta giant, seized by the Kremlin amid Ukraine conflict
The state has just taken over Russia's largest pasta and flour producer. Protests, or even declarations of asset repurchase and donating millions of pounds to the war in Ukraine, didn't save the company. Makfa falls into Putin's hands.
9 May 2024 09:09
Immediate execution upon the prosecutor's office request. Makfa loses its independence. The Russian company, a leading distributor of pasta and flour in the country, is also a significant producer of cereals and cereal flakes. It is one of the top 5 pasta producers in the world.
The company's acquisition is related to accusations against Makfa's owners: the former governor of the Chelyabinsk Oblast, Mikhail Yurevich, is suspected of bribery, and the former regional deputy Vadim Belousov was convicted in 2022 based on the exact charges - explains "The Moscow Times". Both live abroad.
Buyout and millions for the war
According to RBC reports, attempts to avoid a closed-door trial by transferring the case to an arbitration court were unsuccessful. As the Russian newspaper reports, as part of a settlement, they offered to buy back the company and spend roughly £9.8 million annually on Russia's war in Ukraine.
Makfa, on its website, announced that "its shareholders declare that they will seek justice by all available legal means".
Meanwhile, the company's lawyer Pavel Khlyustov, quoted by the newspaper, argues that there are grounds for appealing the verdict to the Russian Constitutional Court.
Creeping nationalization
As "The Moscow Times" assessed, the appropriation of Makfa's assets is another manifestation of "the creeping Kremlin's push towards forced nationalizations".
"Since the onset of Moscow's full-scale invasion of neighbouring Ukraine, Russian authorities have attempted to nationalize key assets of the national defence industry, seeking greater control over increased military production. However, mass confiscation of assets increasingly focuses on the civilian economy" - we read.
