Only debtors see the Russian footprint: how the label of cooperation with russia is used in business wars

After the full-scale invasion of russia, we, alas, quite often hear about cooperation with russia by one company or another. The recent scandal around the German corporation Knauf, which was accused by German journalists of supplying building materials to the occupiers in Mariupol, is worth just one example. And, alas, but often such accusations are true and are confirmed. However, it is difficult to see something in troubled waters, which was used by unscrupulous businessmen, who do not aim to conduct honest business, but seek only to snatch more while no one noticed. And when their actions seek to stop them within the law - that's when the trump card - the Russian trail - comes into play. And then wash yourself clean from such an accusation.

The multinational company Trans-Oil, which has been successfully operating for many years not only in Ukraine, but also in Moldova, Romania and Serbia, has fallen under such accusation.

 Trans Oil

Trans-Oil has its roots in the American company Trans-Oil, founded by James Kelly, a major American businessman who founded the company in the 1950s. After the collapse of the USSR, Trans-Oil started agro-trading activities in Ukraine and Moldova. The headquarters of the company is located in Geneva (Switzerland). For many years the company has been building and strengthening its ties with leading banking and financial institutions in Switzerland, USA, Canada. Trans Oil built the first grain loading terminal in Moldova, and for many years it has served as the main platform for grain and vegetable oils from Moldova to international markets. The company also owns the largest oilseed processing plant in Serbia, as well as grain and logistics structures. Mr. Asif Chaudhry, former U.S. Ambassador to Moldova, is a member of the Group's Board of Directors. The Group currently employs over 2800 people and has sales of $2.3 billion.  

Such success would not have been possible without close cooperation with global financial structures. We all realize that any big business is not only about profit, but also about constant expansion, development, innovations for which investments are needed. Thus, the construction of Trans-Oil's first assets was financed by Overseas Private Investment Corporation, now known as Development Finance Corporation - an American development bank, the founder of which is the U.S. Government. Trans-Oil was the first and only company to receive financing from this organization in Moldova.     

For decades, Trans-Oil Group has been a borrower of many European and American banks, which analyze its activities in detail, including possible activities in Russia. Also, the Group is audited by KPMG, an international company of the Big Four. Audit reports are published on Trans-Oil's website. The Company is a recognized leader in corporate governance and transparency.  

In 2019, and subsequently in 2021. Trans-Oil placed a Eurobond in the amount of $500 mln. Such financial instrument is a sign of the highest quality, which was given by the international financial market and is equal to the position of the leaders of the Ukrainian grain market - Kernel and MHP. In the process of placement of the Eurobond, the company's activity was analyzed in detail by lawyers, auditors and investment bankers, who confirmed the compliance of the Group's activity with all global norms and business standards.

One of the company's shareholders is OakTree Capital Management, a U.S. investment fund with $192 billion under management.

Among OakTree's investors, you can find 65 of the 100 largest pension funds in the world, as well as 15 sovereign wealth funds.

Oaktree is part of Brookfield -  the world's largest Canadian alternative investment fund, whose largest shareholders are the Canada Pension Fund as well as the Teachers' Pension Fund of Canada.

However, and here we come to the most interesting thing, which was the reason for the accusations - the main shareholder of the Group is Vazha Jashi - an American (US citizen) of Georgian origin, who, may the reader forgive us for the humor, had the misfortune to be born in the USSR. And although he has been living in the USA since his childhood and was educated there, his historical connection with the USSR has served as a "good" reason for accusations of ties with the Russian Federation. And this despite the fact that there is not a single official confirmation that he has any business, assets, real estate or paid taxes there. 

What is the matter? Why didn't any global consulting, financial and investment organizations see Jasha's ties to russia, but they did in Ukraine? It is worth asking the question - who did?

Fight for the terminal 

In early February 2023, the U.S. funds Argentem Creek Partners and Innovatus Capital Partners announced the start of bankruptcy proceedings of Olimpex Coupe International (part of GNT Group), which operates the Olimpex Coupe International grain terminal at the Odessa Commercial Seaport. 

According to the creditors themselves, the decision to file for bankruptcy of Olimpex Coupe International was due to "GNT's inability to repay its debt to creditors, significant deficiencies in management, transparency and misappropriation of assets...". At the same time, as it turned out later, embezzlement can also be understood as the willful withdrawal of assets (reissue) to third parties, which, of course, significantly reduces the likelihood of proper repayment of debt claims of creditors.  Actually, the amount of the debts themselves (now we are talking only about loans and interest to the above-mentioned U.S. funds), according to various estimates, is about $142 million.

Moreover, estimates of the value of the Olympex Coupe grain terminal itself vary from $176.6 million to $350 million, according to GNT itself and independent experts.  But, strangely enough, it is only for cases when it is necessary to take a loan, and for cases when it comes to repayment of loans or withdrawal of the terminal from the collateral its value sharply ... shrinks - so half of the terminal was sold in February 2023 for $3.6 million. That is, we can assume that the value of the entire terminal is $7.2 million, which is much more modest than even the minimum estimate of $176 million.

And the sale procedure itself raises many questions. As it turned out, the beneficiaries of Olimpex Vladimir Naumenko and Sergei Groza through other companies controlled by them took a loan  from Yuzhny Bank for $17.5 million against the property of GNT group companies, including half of the grain terminal in the port of Odessa. Such actions were made contrary to the agreement between Argentem Creek Partners and GNT, which prohibits the pledge of the terminal property, as well as contrary to the court decision of January 2023, which seized the terminal, among other things. Further, in the midst of the dispute over the terminal with U.S. creditors, Bank Yuzhny initiated foreclosure proceedings against, among other things, half of the grain terminal of Olympex Coupe, a company owned by GNT Group, by selling the asset to another person. This was despite the fact that the principal obligation under the loan was not due until July 31, 2024.

The buyer was a certain company Sanolta Feed LLC from Sunolta Group (registered on 02.07.2020).

It somehow managed to acquire even the property under arrest according to the court decision.  Further, Sanolta Korm alienates half of the grain terminal Olympex (IV stage of construction) in favor of ATOLLO GRANUM LLC for almost symbolic UAH 163.2 million. And, one more nuance, which probably will not surprise the reader, ATOLLO GRANUM is also related to Sunolta Group.

The sole shareholder of Attollo Granum is the Estonian Sunolta OU, and the beneficiary is Tatiana Kovalenko. The company's registration address is similar to the address of the Olympex grain terminal, i.e. Odessa, Tamozhennaya Square, dom. Odessa, Tamozhennaya Square, dom. 1/1. The original shareholder of Attollo Granum LLC was Afonin Sergey, and on April 6, 2023, 100% of the rights to the company was acquired by Sunolta OU. Attollo Granum LLC does not own any property other than half of the Olympex grain terminal (IV stage of construction). The acquisition of this property is the subject of a law enforcement investigation and a court appeal.

This whole epic unfolded against the backdrop of international and domestic litigation, which resulted in an injunction against any action being taken on the terminal property - even before it was first sold. This injunction was confirmed by a decision of the High Court of England and Wales dated January 14, 2023. In its judgment, the court confirmed the order to freeze the debtor's (GNT) property worldwide. After a lengthy trial, the English court concluded that Naumenko and Groza had been withdrawing assets and hiding them around the world. The creditors obtained a court order allowing them to search for assets already withdrawn and prevent new encroachments. In addition, a court decision in Ukraine appointed an insolvency administrator, who, however, faced opposition from the new (old?) management of the terminal.

And so when the American investors Argentum Creek Partners and Innovatus Capital Partners still managed to prove their rights to the terminal (is it final or are there still surprises in store?) and Trans-Oil Group appears. On April 24, 2024  this company "entered into a lease and management agreement for the Olympex port terminal with the arbitration manager of the terminal".  The company was selected as being bona fide and experienced in managing such assets. Among other things, according to the agreement signed between Trans-Oil and the American investors, the company undertook to make efforts to assess the current operational and financial situation of Olympex and to prevent embezzlement of assets by the former owners!

It would seem that the terminal is now in the hands of those who can manage it effectively. But that was not the case. Someone, in all likelihood, did not like the fact that TransOil would evaluate the financial situation and make efforts to prevent embezzlement. And this someone decided to play the card of cooperation with rf.

By the way, at the time of rf's barbaric attack on Ukraine, Trans-Oil stopped all grain purchases from rf and has not purchased a single ton of grain from rf since february 2022. In november 2023. As a result of a Russian terrorist attack by drones and missiles, TransOil Group's grain terminal on the Danube River, Renia Elevator, was damaged.

In addition, Trans-Oil actively assisted refugees from Ukraine by providing well-paid jobs in specialty occupations. This process was coordinated together with the UNDP (United Nations Development Program) mission in Moldova. To date, Trans Oil has provided skilled and well-paid jobs to more than 100 refugees from Ukraine (about 7% of the total number of the company's employees in Moldova).