PRESS RELEASE: Threat to reputation – threat to business

Open Letter of Robert Dix, Quinns Holding Sweden AB to the representatives of foreign business community and Ukrainian media

Those of us who represent foreign businesses and financial institutions with business interests in Ukraine were very pleased to hear your recent announcement of the Prime Minister of Ukraine on his determination to put an end to that chronic disease of Ukraine’s economy, raiding. These words were a clear indication for us that, at the highest level in Ukraine there is understanding how utterly important it is for investors to feel protected in their business and finance, as well as determination and capacity to really carry out this plan.

Today, the information on the conflict around the Ukrainian assets of Quinn Holdings Sweden AB got in the center of public attention. Today, we found out what it means to try to protect our business against the encroachments of business pirates.

Our case is both typical and unique, as here it is not just a matter of taking over a company, its business or its premises. We are talking about a property that has long become a symbol of Ukraine’s business environment. What’s more, it is a symbol of the capital of this country, both in the eyes of foreign business and in the eyes of Ukrainians themselves: the Ukraina Shopping Center in Kyiv.

Our Group, with the support of the Irish Bank Resolution Corporation, which is now owned by the Irish State, has once provided substantial investment capital for the development of this property by buying around 93% of shares of the Public Joint Stock Company "Univermag Ukraina". Now there is a real threat that this property will be seized from us in Ukraine through a raiding take-over. Thus, we have an example when the legal owner and majority shareholder is being deprived from its assets in Ukraine.

To prevent possible negative developments we had called for an extraordinary shareholders meeting and took a decision to dismiss the acting director. We also appointed a new acting director, which has been continuously denied access to his office by the dismissed management. Thus we have an example when the legal owner and majority shareholder is being deprived from his assets in Ukraine.

All this is happening amidst an unprecedented black PR-campaign, which is carried out on behalf of dubiously existing press service of Univermag Ukraina. This campaign not only hits our reputation, but also puts all our business under threat.

Today a number of Internet resources have been disseminating false information on QHS and IBRC. As an example, the "press service" of Univermag "Ukraina" (Department Store "Ukraine") accused IBRC, an Irish state-owned bank, of practicing property raiding schemes. Obviously, the accusation of a state-owned bank of raiding someone’s property is a complete nonsense. We regret to acknowledge that some respectful media resources have become instrumental in this smear informational campaign.

We would like to take this opportunity and once again appeal to all reputable media, editors and journalists. Following the Western standards of media coverage we, under no circumstances, will release paid or questionable publications. At the same time, we appeal to you to carefully verify information that you receive in reference to Univermag "Ukraina" (Department Store "Ukraine") as well as QHS and IBRC.

We intend to follow maximum publicity and transparency in the matter. In case we identify a threat to our reputation we will be forced to use adequate means provided by the Ukrainian and international legislation.

Robert Dix

Quinn Holdings Sweden AB