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Eastern Europe
June 21, 2019 www.intellinews.com I Page 16
Chinese agro investment expands as COFCO eyes Russia's third largest grain terminal
The Sino-Russian ties are deepening as China ramps up its investment into Russian agriculture. Chinese COFCO trading corporation is eyeing a 25% stake in Russian KSK grain terminal in Novo- rossiysk, Vedomoti daily and Reuters reported on July 14 citing the sources close to the deal.
DeloPorts controls the third largest grain terminal in the southern Chernomorsk region of Russia and confirmed negotiations have begun without disclosing the details.
Agriculture has been a key strategic sector for the Kremlin, which has poured money into developing
the sector and seen grain production and exports soar as a result.
Grain is the new oil with Russia earning over $20bn a year from grain exports in recent years
– the second biggest export product after raw materials and more than it makes from the export of arms. Russia has been the world’s largest grain exporter for the last few years and is on course
to retain the title, although this year it is running neck and neck with Ukraine for the title.
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London court goes against Calvey in OCB Bank case
IntelliNews Pro
The London Court of International Arbitrage (LCIA) supported the right of FinVision of Artyom Avetisyan to demand the exercise of an option for 9.99% in Oriental Express Bank (OEB) of Baring Vostok Capital Partners (BVCP) investment
fund, Vedomosti daily reported on June 17 citing an unpublished copy of the court's decision.
The decision could be a major defeat to BCVP. Rus- sia’s most famous fund manager Michael Calvey and several of his colleagues from BVCP were arrested in February after the Federal Security Service (FSB) opened an investigation into an accusation that BVCP illegally mispriced shares in the OEB. Calvey is accused of RUB2.5bn ($37.5mn) embezzlement.
Since the 2014 devaluation of the ruble OEB has been having problems. Once one of Russia’s leading consumer financing banks, specialising in providing services in Russia’s regions, the Central Bank of Russia (CBR) order the owners to re- capitalise the bank by April or it may be closed.
A dispute then started between BVCP and Avetisyan on how much money they should put in and to what extent their stakes should be diluted. BVCP invoked a clause in the shareholders agreement that meant the dispute should be resolved by the arbitration court in London.
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