Astarta legal department head Timakina elucidated conflict with Agrostudio

Eco Energy Ukraine, a subsidiary of the agro-industrial holding Astarta-Kyiv, suspended corn deliveries under forward contracts due to payment delays by Agrostudio Group Limited, states Astarta's Director for Legal Issues Liliya Timakina.

"Two contracts were signed between Agrostudio Group Limited and Eco Energy Ukraine, a subsidiary of Astarta-Kyiv, for the supply of 5 and 10 thou. t of corn of 2020 crop. Pursuant to the legislation of Ukraine and the terms of the contracts, the failure of one party to fulfill its obligations within the established term is a basis for the other party to refuse to fulfill its obligations," Liliya Timakina stresses.

Eco Energy Ukraine delivered 1,656 t of corn to Agrostudio Group Limited under one of its contracts, she says.

"However, due to delayed payments from Agrostudio Group Limited and closure of their accounts, which occurred on December 10, 2020, the delivery of commodities was halted," explains Liliya Timakina "Only after lengthy correspondence to settle debts for the shipment did we receive money from the parent company Agrostudio Group Limited for the grain already delivered."

According to her, under the second contract Agrostudio Group Limited provided shipment instructions only a week before its expiration date. Liliya Timakina says that this was what made it impossible for Eco Energy Ukraine to fulfil the second contract.

" I want to stress that Agrostudio Group Limited, as of the end of December 2020, did not have an active account and it was an objective proof that they would not be able to pay us for the goods," stresses Liliya Timakina.

On April 14, 2021, the Kyiv Court of Appeal based on the position and evidence presented by Agrostudio Group Limited, seized USD 96 thou. and 3 thou. t of corn of Eco Energy Ukraine, but on May 6, 2021, the same court reversed the seizure after considering the evidence presented by Eco Energy Ukraine.

"Despite the arrests reversed and being fully aware of the company's financial capacity to comply with the court order, Agrostudio Group Limited continues its bad-faith practices and attempts to exert pressure by filing two more applications for the seizure of accounts and corn. One of these petitions was rejected on April 15 as unlawful. Whereas another judge seized the funds and corn despite the fact that the court ruling of May 6, which entered into force, refuted all arguments of Agrostudio Group Limited," the company says in a statement.

Liliya Timakina notes that the company learned about the new arrest on 12 May and is already prepared to submit documents and evidence for the cancellation of such an arrest. She is convinced that the court will consider lifting the arrest within 5 days, as provided by law.

Eco Energy Ukraine is operating normally and is fulfilling its contractual obligations.

As a reminder, in mid-April 2021, the Kyiv Court of Appeal seized USD 434,700 in funds of Eco Energy Ukraine according to a lawsuit filed by Agrostudio Group.