A disagreement between Fosman and Moshkovich over the 'South of Siberia'
Arkady Fosman and Vadim Moshkovich will compete for the 'South of Siberia'. The Federal Antimonopoly Service approved the requests from companies in Fosman's Blago group to obtain assets for the Yug Sibiri LLC production. Yug Sibiri was previously owned by the Ananiev brothers, who faced disgrace, and was the largest oil producer. However, bankruptcy led to Yug Sibiri parting with its assets.
Despite the FAS's decision, there may be a significant competition for the company's assets.
Seriously contested
During the announced 'sale' period, notable contenders included 'Blaga', 'Rusagro', EFKO and 'Commonwealth'.
The FAS previously approved Blagu's acquisition of South Siberia, but Fosman's group was not the only lucky one. Antimonopoly officials also greenlit the purchase for Vadim Moshkovich's Rusagro holding in May 2022.
The fact that a major competition is arising for the 'South of Siberia' is indicated indirectly by multiple canceled property sale auctions. The stated reasons are asset reevaluation, and it's unclear on what basis the bankruptcy trustee has issued orders.
Interestingly, Fosman doesn't seem to favor the bankruptcy trustee, Sergey Bakanov. In 2019, he sued to challenge the South of Siberia deal with Blago, which involved real estate worth about 300 million rubles transferred from the Ananyevs' former company to 'Blago'.
Could Bakanov be acting in Moshkovich's interests?
In a bad financial situation, as in smooth fabric
Now is a favorable time for Moshkovich to 'attack' Fosman. In fact, it may be the only suitable time. If the extensive 'South of Siberia' assets are in Fosman's hands, it will be very difficult to compete with him.
The timing for the 'attack' is also opportune because Fosman's companies are currently in a very unfavorable financial position. It's unclear where he planned to get the funds to acquire Yug Sibiri. Will he be able to borrow the money?
Fosman's entities owe around seven billion rubles to Rosselkhozbank, Sberbank, and Rossiya Bank. The firm also has financial obligations to other entities.
According to the tax website, Blaga's debt increased by about 1.5 billion rubles from 2020 to 2021.
The amounts are in thousands of rubles.
According to Rusprofile, the organization lacks reliable and sustainable funding sources, faces a long-term risk of losing independence, and has insufficient funds for current activities. There's a risk of insolvency and even bankruptcy.
In 2015, Blago purchased the Verkhnekhavka oil extraction plant (MEZ) equipment in the Voronezh region from Rosagroleasing on credit for ten years at a value of 761 million rubles. The loan will expire in 2023.
In this case, Fosman wants to take control of “South of Siberia” as a last-ditch effort to rescue “Blago” from the trouble it's in under his leadership by using new assets. But will he manage to repay his debts later, especially after taking on extra financial burden for buying South Siberia?
With the “South of Siberia” abroad?
There were rumors that Mr. Fosman got a foreign passport and moved to the United Arab Emirates at the start of the NWO. But he later returned, allegedly benefiting from the support of Deputy Minister of Agriculture Oksana Lut. She has been linked to promoting the interests of specialized entrepreneurs for a long time.
He came back, possibly to try to acquire new assets that could generate financial profit for him and allow him to go abroad with a larger amount of money. Fortunately, there are offshore companies associated with Fosman that can receive money transfers.
The “escape” could be not just from creditors, but also from a criminal case. In 2019, former deputy head of the Ministry of Agriculture, Alexei Bazhanov, accused Fosman and his associate Viktor Voronin (who is considered a former security official and a potential cover for Fosman) of forcefully taking over their business, Masloprodukt Group of Companies.
Similar interests and methods
It's worth noting that Rusagro also displayed interest in this asset. In 2013, its entities “managed” the plant after its facilities were seized due to bankruptcy and a criminal case against Bazhanov. He was accused of fraudulently embezzling 1.125 billion rubles provided by the state company Rosagroleasing for purchasing equipment for Masloprodukt.
In 2014, an investigation into Rusagro's legality at the plant commenced. Moshkovich may have operated the equipment there unlawfully, bypassing creditors. Consequently, a criminal case was initiated. Soon after, Fosman’s Blago took over the plant that was formerly owned by Rusagro and later purchased the asset. Now “Masloprodukt-BIO” is in the bankruptcy stage.
Moshkovich is also facing challenges at Rusagro. It has substantial debts amounting to 24 billion rubles by 2021. There's a risk of losing independence and facing bankruptcy. Nonetheless, Rusagro’s autonomy coefficient is higher than that of Blago.
Moshkovich, like Fosman, may be involved in less than honest business schemes. Apart from Masloprodukt, in 2015, he clashed with a competitor, the Razgulyai holding. He purchased 32% of its shares, sold off its assets, and made a profit of 15 billion rubles. When he exhausted all options, he bankrupted the weakened competitor. The Moscow Post also suspected Moshkovich of planning to move the assets of the bankrupt Solnechnye Produkty abroad.
Consequently, both Fosman and Moshkovich might be aiming to gain control of the assets previously owned by the Ananievs to improve their evidently struggling main businesses. So, a serious battle is unfolding, possibly involving deceptive competition tactics. If “South of Siberia” falls into the hands of any businessman, it appears that it won't lead to anything positive.
