11:18 05.05.2016

Lauffer Group's property losses in Crimea, Donbas estimated at about UAH 2.5 bln

2 min read
Lauffer Group's property losses in Crimea, Donbas estimated at about UAH 2.5 bln

Large flour, bread and pasta producer Lauffer Group's property losses because of the Russian annexation of Crimea and occupation of Donbas in eastern Ukraine are tentatively estimated at about UAH 2.5 billion (about $100 million), the company said in a statement.

"The tentative estimate of the company's property losses due to the annexation of Crimea and the occupation of territory in the east is about UAH 2.5 billion. These are the assets that may have potentially generated up to UAH 500 million in additional revenue," the statement said.

Simferopol-based bakery and Krymkhlib were seized in Crimea with gross violation of Ukrainian and international laws, including Russian ones. Since 2014, these assets have not been controlled by the Lauffer Group

The group's enterprises located in the Anti-Terrorist Operation zone were also partly seized and are not now under control.

"Obstacles to doing business at full and managing the assets, unclear status of those enterprises and the majority stockholder's position have made the Lauffer Group decide to sell all those companies located in that zone," the statement said.

The Lauffer Group expects the results of an audit of its ownership structure, which will be made public.

Lauffer is a large Ukrainian business group whose core business is the processing of farm produce and production of food. It has been working in Ukraine for 14 years. It incorporates about 100 enterprises, namely flour mills, bakeries, canneries and mayonnaise production facilities.

Oleksandr Leschynsky is its founder and owner.

AD
AD
AD
AD
AD