16:08 26.05.2014

Poroshenko looks set to win Ukrainian election, confirms plans to sell business after inauguration

2 min read
Poroshenko looks set to win Ukrainian election, confirms plans to sell business after inauguration

Parliamentarian Petro Poroshenko, who is leading by a wide margin in the Ukrainian presidential election, has confirmed his intention to deliver on his promise to sell his business assets after assuming the office of the head of state.

"As regards my business, a contract with an investment company will be drafted immediately after that to search for buyers," he told reporters at his campaign headquarters in the early hours of Monday.

It was reported that during his tenure as the head of the National Security and Defense Council in March 2005, Poroshenko handed over all his business assets to the Petro Poroshenko closed non-diversified corporate investment fund (ZNKIF) later renamed as Prime Asset Capital.

Among his largest assets are: Roshen Confectionary Corporation with assets in Ukraine, Russia, Lithuania, Hungary and Germany; TV Channel Five, the Leninska Kuznya Shipyard (Kyiv) with significant land plots in the capital; and the Sevastopol Marine Plant (Sevastopol), a 55% stake in the 5th Element Sports Club in Kyiv, 50.08% stake in the International Investment Bank and a 49.996% stake in Krayina, an insurance company.

Poroshenko remains the only owner of the fund run by his father, Oleksiy Poroshenko, according to the Ukrainian State Register.

The presidential candidate's other big asset was his share in the Bogdan auto corporation, but he stated on several occasions that he had quit the business a few years ago, having swapped his share with his partner for a share in Roshen.

Prime Asset Capital is run by Fusion Capital Partners, an asset-managing company, which also manages the investment funds VIK (director: Ihor Kononenko), SOVA (director: Oleh Svynarchuk), Kondyterinvest (director Viacheslav Moskalevsky), all three are Poroshenko's business partners; Bogdan Capital and BRIZ.

According to Prime Asset Capital's 2012 report, its net profit dropped by 4.3 times to UAH 66.92 million in comparison with 2011. Total balance at the end of 2012 stood at UAH 941.6 million, including UAH 783.9 million in long-term financial investments and UAH 139.7 million in foreign currency.

There is no 2013 report yet, although its deadline has expired.

In 2013 the Forbes magazine estimated Poroshenko's net worth at $1.6 billion in comparison with $1 billion a year earlier. However, the overwhelming number of Ukrainian assets have since become cheaper because of the domestic crisis. Furthermore, Roshen Corporation, Poroshenko's main asset, has been under sanctions imposed by Russia, its second biggest market, since the summer of 2013.

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