Ukrainian court denied the UAH 227 mln claim of Bunge Ukraine against Agroinvestgroup

5 March 2019, 18:00, Grain storage

The Economic Court of Odesa region denied the claim of the subsidiary of Bunge Ukraine, Suntrade, against Agroinvestgroup in the amount of UAH 226.74 million (USD 8.45 million), as informed in the Record of court decisions.

“The court is of the view that the applicant did not prove to the court that the failure to take the measures indicated by him could significantly complicate or make impossible the execution of the court decision, therefore the claim of the company Suntrade about securing the claim should be denied,” the court decision states.

The subsidiary enterprise with foreign investments Suntrade appealed to the court with a statement on the security of the claim to the enterprises with which seven contracts for the storage of grain were concluded. Among those are:

Izmail elevator — UAH 41.22 mln (sunflower, corn and barley);
Belgorod-Dniester elevator — UAH 40.12 mln (sunflower, corn);
Zaplazsky elevator — UAH 43.07 mln (sunflower, corn);
Aliyag elevator — UAH 25.77 mln (sunflower);
Berezovsky elevator — UAH 45.87 mln (sunflower, corn);
Raukhovsky elevator — UAH 13 mln (sunflower);
Novomirgorodsky elevator — UAH 17.76 mln (corn).

The total inventory value of sunflower, corn and barley stands at UAH 226.74 million.

In order to inspect the stored grain, Suntrade sent an independent surveyor, but the employees (security guards) of the grain storage facilities denied access to the territory.

The applicant claims that workers at the elevators refuse to accept Suntrade's requests for the shipment of grain.

Based on the Suntrade's statements, 7 criminal proceedings were opened within which the disputed grain was arrested. However, the court notes that the potential inability of the defendant to fulfil its obligations is not a sufficient basis for satisfying the applications.

Previously it was reported that the Economic Court of Odesa region arrested the accounts of Agroinvestgroup and East Oils Ukraine on the companies' debt to Tascombank.