Russia charges farming billionaire Moshkovich with fraud

By Gleb Bryanski and Olga Popova

MOSCOW (Reuters) -Russian police have charged billionaire Vadim Moshkovich, founder of the country's top agriculture company Rusagro, with fraud on Wednesday, Russian news agencies said, in the highest profile case against a major businessman in years.

The detention of Moshkovich, 57, Russia's 55th richest businessman, according to Forbes, and ex-CEO of Rusagro Maxim Basov as well as police raids in several Rusagro offices, sent shockwaves through the Russian business community.

The case comes as Russia is also quickening the pace of domestic asset seizures after courts ruled that a leading grain trader, Moscow's Domodedovo airport and strategic warehouse assets be handed over to the state, citing their foreign links.

Izvestia newspaper reported that the company's current CEO Timur Lipatov was also being questioned by the police. Rusagro's shares fell by about 18% on the news.

The company issued a statement confirming several of its offices had been searched but saying the operation was not related to its "current activities".

"We understand that this situation may raise questions among our clients, partners and employees, so we hasten to assure you: the company fully complies with the law and is ready to provide all necessary assistance to authorised bodies," it said.

It said all company activities were continuing as normal, and all obligations were being met. "We are confident in the transparency of our work and expect the procedures to be completed as soon as possible."

SIGNIFICANT ENTERPRISE

The company is Russia's leading producer of sugar, meat, oil and fat products, and is ranked among the country's top five landowners. It also announced plans to supply grain to East Africa.

The police action also comes after the U.S. pledged to facilitate access for Russia's agricultural products to the global markets as part of the Black Sea navigation safety deal.

The government included it last year in a list of "economically significant enterprises" considered important for Russia's economic sovereignty and security.

Moshkovich founded Rusagro in 2004. The billionaire was also a member of the upper house of the Russian parliament between 2006 and 2014.

After having sanctions imposed by the West, Moshkovich resigned as chairman of Rusagro in 2022, cutting his stake to below 50%.

Rusagro, which is not under Western sanctions, is Russia's only major listed agricultural company.

Its shares have been quoted on the Moscow Stock Exchange (MOEX) since last month, replacing the GDRs of its Cyprus-based parent company which until last year were also listed on the London Stock Exchange.

Rusagro changed its domicile from Cyprus to Russia, following a Russian court decision in a case brought by the Agriculture Ministry against Rusagro's Cyprus-based parent company.

A group of members of the lower house of Russian parliament asked the Justice Ministry in 2024 to designate Moshkovich as "foreign agent", a legal status often assigned to opposition activists, due to the company's Cyprus domicile.

(Additional reporting by Ksenia Orlova, Maxim Rodionov and Darya Korsunskaya; Editing by Mark Trevelyan and David Evans)