In Putin's grasp: Russia's top pasta producer seized by state
The largest pasta and flour producer in Russia has just been taken over by the state, a move that shows protests or even offers of asset repurchase accompanied by millions of dollars in donations to the war in Ukraine were not enough to prevent the takeover. Makfa now falls under Putin's control.
This move occurred immediately upon the prosecutor's office request, stripping Makfa of its independence. The Russian company is a leading distributor of pasta and flour nationwide and a significant producer of cereals and cereal flakes, positioning it among the top five pasta producers globally.
The company's seizure is tied to allegations against Makfa's owners: Mikhail Yurevich, the former governor of the Chelyabinsk Oblast, is under suspicion of bribery, and Vadim Belousov, a former regional deputy, was convicted in 2022 based on similar charges, according to "The Moscow Times." Both are currently living abroad.
Buyout and millions for the war
Reports by RBC indicate that attempts to shift the case from a closed-door trial to an arbitration court were unsuccessful. The Russian newspaper further reports that as part of an arrangement, there was an offer to repurchase the company and allocate approximately 12 million USD (about 16 million CAD) annually to support Russia's military activities in Ukraine.
On its website, Makfa announced, "Its shareholders declare that they will pursue justice through all available legal channels."
Meanwhile, the company's lawyer, Pavel Khlyustov, cited by the newspaper, believes there is a basis to challenge the verdict in the Russian Constitutional Court.
Creeping nationalization
"The Moscow Times" views the seizure of Makfa's assets as further evidence of the Kremlin's gradual shift towards enforced nationalizations. Since Russia's full-scale military incursion into Ukraine, the Russian government has sought to nationalize critical assets of the national defence industry to increase control over military production. Yet, the publication notes that the widespread confiscation of assets is increasingly targeting the civilian realm.
