Petro Poroshenko
Experts analyzed Poroshenko's assets: Roshen, Bogdan, media, agricultural enterprises, shipbuilding, and a small financial sector.
According to Forbes, Poroshenko ranks sixth among Ukraine's wealthiest people and manages assets worth $1,3 billion, Censor.NET reports, citing Insider.
Article 103 of the Constitution states that the president cannot engage in paid or entrepreneurial activity. Petro Poroshenko does not. His assets are managed by his father and junior business partners, who have become his confidants over many years of working together, writes [the source]. What exactly is included in Poroshenko's business empire?
Closed-end fund
Poroshenko's assets are held by Prime Assets Capital, a closed-end non-diversified corporate investment fund (CNICF), established in 2005. At the time of its formation, it was called Petro Poroshenko CNICF, but was renamed in 2006.
According to the State Register of Legal Entities, 100% of the fund's shares belong to Petro Poroshenko, and the structure is headed by his father, Oleksiy.
The businessman's parent structure has this form of ownership for the convenience of managing a large number of assets.
Business partners
Ihor Kononenko is Poroshenko's army comrade. In 2008, he was elected to the Kyiv City Council, where he became the chairman of the Initiative faction.
Kononenko, like Poroshenko, owns an investment fund, the ZNKIF "VIK." He and Poroshenko's fund jointly own the Peskovsky Glassworks Plant, located in the urban-type settlement of Peskovka in the Kyiv region.
As Konenko told Forbes, the partners together created Poroshenko's first corporation, the Ukrainian Industrial and Investment Concern (Ukrprominvest), which has since been liquidated.
Another well-known associate of the new president is Oleh Zimin. He was a member of parliament of the 4th convocation from 2002 to 2006 in the People's Union "Our Ukraine" faction, which supported then-President Viktor Yushchenko.
Within Poroshenko's structures, Zimin is responsible for battery manufacturing companies. Together with the presidential foundation, he is a co-owner of the Dnipropetrovsk Research Plant Energoavtomatika LLC, a company that manufactures batteries.
Energoavtomatika is part of the National Battery Corporation Ista, which belongs to Zimin. Thus, Poroshenko is only a co-owner of this company.
Zimin also independently runs a business manufacturing spare parts for agricultural machinery, in which Poroshenko previously held a stake. Through non-resident companies, he controls Ukravtozapchast LLC, which has branches in every region.
Ukravtozapchast also includes the trading company Aleko Salon-Magazin LLC, Aleko-Service PJSC, and the Nizhyn Agricultural Machinery Plant OJSC. Ukravtozapchast revealed to Ekonomichna Pravda in June 2013 that all of these enterprises were owned by Zimin.
"Bogdan"
In early 2013, Poroshenko told Forbes that he had sold his stake in the Bogdan corporation, which produces cars and buses, to his partner, Oleh Svinarchuk.
However, it turned out that Poroshenko still has a stake in this business.
The ownership structure of PJSC "Bogdan Motors Automobile Company" is extremely complex. It involves more than 10 companies, often owned by each other through third-party legal entities. The chain of shareholders and founders leads to two funds.
The first is the closed-end non-state investment fund "Sova," 100% of whose shares are owned by Svinarchuk. The second is the closed-end non-state investment fund "Prime Assets Capital," owned by Petro Poroshenko.
According to the Stock Market Development Agency, in 2013, Bogdan Motors JSC had revenue of UAH 1,05 billion.
Media
For several years, Poroshenko's companies held a stake in Boris Lozhkin's UMH media holding, but in 2013, Lozhkin consolidated his holding's assets and sold them to Sergei Kurchenko's Vetek group.
But the new president's foundation already has enough media coverage, the publication writes:
Lviv-based TRT-TV Television and Radio Broadcasting Company LLC holds licenses for broadcasting the regional TRT television company in Truskavets and the Tvoye Radio radio station in Drohobych.
Express-Inform TV and Radio Company LLC is a company licensed for national broadcasting of Channel Five.
A foreign-invested company, NBM Television and Radio Broadcasting Company broadcasts nationwide on two FM frequencies. It holds licenses for Niko-FM and Radio 5-Retro FM.
Pilot-Ukraine Television and Radio Company LLC holds the broadcasting license for Odesa's Radio Next. Previously, this company also owned Odesa's Radio ROKS-Ukraine. However, in 2010, its frequencies were transferred to Oleksiy Kostusev's New Wave TV and Radio Company, who served as Odesa's mayor from 2010 to 2013.
All the companies mentioned were founded either solely by Prime Assets Capital, or jointly with Prestige Group, which belongs to Vladislav Lyasovsky, the former CEO of Express-Inform.
Poroshenko also acquired a stake in Firma Ekran LLC, which provides long-distance communications services under the Maximum TV brand using MITRIS technology. Together with the foundation, he owns 99,8% of the authorized capital. The remainder is divided among four owners. Ivan Lytvyn, Volodymyr Lytvyn's son, owns 0,04%.
Roshen
The parent company of this business is Central European Confectionery Company (CECC), LLC. It owns a subsidiary, Roshen Confectionery Corporation, headed by Vyacheslav Moskalevsky. This manager is another of Poroshenko's business partners. These two companies own shares in four Ukrainian confectionery factories: Vinnytsia, Kyiv, Kremenchuk, and Mariupol.
Roshen also includes the Lipetsk factory in Russia, the Klaipeda factory in Lithuania, and the Bonbonetti Choco Kft. company in Hungary.
Following the deterioration of relations between Ukraine and Russia, the Lipetsk factory's accounts were frozen by the Russians. The Mariupol factory was closed 10 days before the elections due to "politically motivated complications in Ukraine's trade relations with external partners."
According to the Stock Market Development Agency, Ukrainian factories alone brought the new head of state almost 1,5 billion hryvnia in net income in 2013.
Shipbuilding and agribusiness
A separate asset area is the shipbuilding business. Poroshenko's parent fund owns controlling stakes in the capital-based Leninskaya Kuznya Plant OJSC, which generated UAH 133 million in revenue in 2013. The latter earned only UAH 25 million last year, but following Russia's annexation of Crimea, the peninsula's new leadership is demanding that Ukrainian companies re-register in Russia.
Among other things, Poroshenko's foundation owns Ukrprominvest-Agro LLC (UPI-Agro). This is the parent company of the agricultural business. In addition to the aforementioned Podillya and Zarya Podillya, it also owns Agrofirma DNEPROAGROLAN LLC, MAS-Agro LLC, and Agrofirma Ivankivtsi LLC.
The businessman's foundation owns shares in two Dnipropetrovsk-based companies: Intercorn Corn Processing Industry, with revenues of 296 million hryvnias in 2013, and Dnipro Starch and Paste Plant, which earned 380 million hryvnias last year. The Krakhmalprodukt Association, also owned by the businessman's foundation, sells the plants' products.
Finance
Poroshenko's empire includes the small insurance company "Kraina", whose revenue in 2013 amounted to 130 million, and the small International Investment Bank, which is in the fourth group of banks by asset value.
Prime Assets Capital also owns PJSC Monitor Sports and Fitness Complex, which owns the 5th Element sports club on Rybalsky Island in Kyiv. Its revenue in 2013 amounted to UAH 65 million.
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