Ivan Miroshnychenko: Unsolved problem of Ukrlandfarming will harm both the agricultural sector and the land market - and Ukraine in general

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Head of the Business Watch and agrarian policy expert Ivan Miroshnychenko believes that the pressure of law-enforcement agencies on Oleg Bakhmatyuk's Ukrlandfarming company could have catastrophic consequences for the country. And the only one possible way out of the situation is peace agreement between a businessman an governmental structures

Photo by AgroPolit.com

Ivan Miroshnychenko, a Ukrainian politician and agricultural policy expert, told about the pressure on Ukrlandfarming, one of Ukraine's largest agricultural producers, which could have extremely negative consequences for the country's economy, in his interview with AgroPolit.com.
Ukrainian News reports.

Ivan Miroshnychenko believes that politically motivated pressure on one of the largest Ukrainian producers - the Ukrlandforming Group of companies, controlled by Oleg Bakhmatyuk - will lead to extremely negative consequences for the Ukrainian economy. " Unsolved problem of Ukrlandfarming will cause harm not only to the agricultural sector but also to the land market and Ukraine in general. "Today, the escalation of the situation around Ukrlandfarming is a careless and unprofessional solution to the issue of debt restructuring by the government and the NBU. For the last five or six years, one can observe visible pressure on the company, and I would remind you that the issue concerns not only Ukrlandfarming, but also the public company Avangard, which has every chance to remain the second producer of eggs and egg powder in the world! What will be the consequences of their fall? Catastrophic".

The expert predicts that the consequences of the possible destruction of the company by the state will significantly outweigh the negative consequences that the economy of the country felt after the fall of the agro holding "Mriya": "1.2-1.5% of GDP of Ukraine, there are 30 thousand people occupied and there are Western lenders with about $ 1.6 billion in loans. "Mriya" fell 6 years ago, and the financial market still remembers this unpleasant taste and is not investing in the agricultural sector of Ukraine with the proper energy. Ukrlandfarming is the size of three "Mriya"’s, it was a leader and was in the top 5 agricultural companies of the world. Oleg Bakhmatiuk is not a saint. But he wants the company to remain and develop, offers to return 8 billion UAH. But the government for some reason does not want it, - says Ivan Miroshnychenko. - Assets worth $ 2-2.5 billion today will be the prey of "liquidators" and raiders. That is, if the state receives $ 200 million at best, the business worth more than $ 2 billion will be destroyed. That is why the authorities, Deposit Guarantee Fund, and the government should demonstrate the responsible and constructive approach in dealing with debt".

Ivan Miroshnychenko reminded us that the cases that law enforcement forces are pushing for the company relate to UAH 1.2 billion received by VAB-Bank from the NBU for refinancing. But at the same moment, Oleg Bakhmatyuk himself is trying to repay UAH 8 billion of loans through the restructuring mechanism. "What is logic? Why the authorities' are trying to get this 1.2 billion UAH when it is possible to et 8 billion UAH? The motivation of officials is unclear. In general, the history of the Ukrainian bank collapse is an example of absurdity: more than 100 banks have been stopped - and they have called it the rehabilitation of the financial and banking system. It is difficult indeed to call it "healing". These were the funerals of the Ukrainian financial and banking system at someone’s request. Thanks to the NBU, FGIF has withdrawn from the market about UAH 570-600 billion of mortgages, which are now being sold for 5-8% of the nominal or mortgage value through the Deposit Guarantee Fund. "

In general, the history of the Ukrainian bank-crash is an example of absurdity: more than 100 banks were put - called it financial-bank health The language does not go back to calling it a cure, it was the funeral of the financial and banking system of Ukraine at the request of someone, thanks to the NBU, it was removed from the market about 570-600 billion USD of mortgages, which are now sold for 5-8% of nominal or mortgage value through the Deposit Guarantee Fund".

According to Miroshnychenko, Oleg Bakhmatyuk himself is trying to save the company and understands the magnitude of the negative consequences of its destruction. The only solution that does not harm the Ukrainian economy is to settle an agreement between Bakhmatyuk and government agencies: "He understands the risks and consequences of his company situation for the country, for the global market, so he tries to save the company and be responsible to the people, the country and 30 thousand of employees, and not let it fall, but to continue its development, if possible. Everything is changing. But for me, he is a prominent Ukrainian, nationally oriented businessman. It is necessary to find the solution, there must be a professional and pragmatic discussion for the people and the economy of the country. Most likely, a settlement agreement between Bakhmatyuk and relevant state institutions should be signed within the framework of the current legislation. All we need is professional solutions, a calm, even discussion to protect people, keep the company and maintain the investment image of Ukraine and its agricultural sector. "

last fall NABU opened the so-called case of Pisaruk-Bakhmatyuk, concerning obtaining refinancing of NBU by VAB Bank during the financial and economic crisis in Ukraine in 2014. The official findings of expert assessments of mortgaged property, the findings of the Deposit Guarantee Fund and the statements of the NBU now refute the allegations made publicly by NABU to Oleg Bakhmatyuk.