Roshen announced the closure of the factory in Lipetsk – RBC

the Building of confectionery factory Roshen in Lipetsk

Photo by: Alexander Ryumin/TASS

In the Lipetsk region closes factory Roshen. The company attributed the halt in production, which is scheduled for April 2017, with the political-economic reasons

Lipetsk factory Roshen stops the production activities for “political and economic reasons.” This is stated in the press release, which is available to RBC.

the report said that the full stop and conservation scheduled for April 2017.

“since 2013, the factory production was reduced three times. The reason for this was the sharp decline in the range after the ban Rospotrebnadzor in 2013, Ukrainian exports of Roshen products to the Russian territory, and active anti-Ukrainian propaganda in the Russian media, and an impediment to the growth of representation of Roshen products on store shelves,” — said the company.

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the press release also States that because of the decline of production at the factory had to conduct mass layoffs. The remaining 700 employees were warned about the upcoming stop activities.

In April of 2015 against the Lipetsk factory Roshen criminal case was initiated under part 5 of article 159 of the Russian criminal code (fraud in especially large size). The consequence considers that during the construction of the factory was stolen 180 million roubles of budgetary funds. On the property of the factory was arrested, but later Roshen was able to appeal. In October 2016, the Prosecutor’s office revealed numerous violations of requirements of industrial safety in the factory Roshen.

In late October, speaking at a session of the discussion club “Valdai”, President Vladimir Putin said that the factory Roshen in Lipetsk region belongs to the President of Ukraine Petro Poroshenko. He then noted that the company “has some problems associated with the payment of VAT”. “The judiciary has imposed certain restrictive measures, but the factory works, works rhythmically, pays a profit, and there are no restrictions associated with the use of the profit, including and its translation abroad”, — Putin said. The Roshen said then that the President’s words confirmed his involvement in the inspections, criminal cases and arrest of property of factory.

Roshen, owned by Poroshenko, but transferred in trust management of Rothschild Trust.