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MP Valery Davydenko's widow appeals to National Security and Defense Council to sanction Andrey Verevskiy and Kernel
3 June 2021, 13:51
Liudmyla Davydenko, the widow of MP Valery Davydenko who died a year ago, urges to consider the inclusion of Andrey Verevskiy and the company Kernel in the list of persons and companies to be sanctioned by the National Security and Defense Council of Ukraine (NSDC).
In an open letter, she appeals to President of Ukraine Volodymyr Zelenskyy, the Secretary of the NSDC Oleksiy Danylov, the Minister of Agrarian Policy and Food of Ukraine Roman Leshchenko.
According to Liudmyla Davydenko, Kernel illegally established control over Agrodim, a company previously owned by the Davydenko family.
"Whilst we were in deep sorrow and confusion, people and companies willing to take control over the business created by my husband started circling around to 'get their hands on' one of the best agricultural enterprises in Chernihiv region. One of such was the company Kernel founded and co-owned by the businessman Andrey Verevskiy. Less than a month had passed since Valery's death when Kernel established control over the assets of Agrodim. Corporate lawyers believe that this move under the control of a large holding has all the features of a hostile takeover. I personally consider such actions to be a raider seizure," Liudmyla Davydenko claims.
As stated in the letter, a secured loan agreement was signed between Kernel and Agrodim in 2019. However, Liudmyla Davydenko marks that after the death of Valery Davydenko, 76% of the corporate rights in Agrodim, which originally were 100% owned by the deceased MP's mother, Valentyna Davydenko, were transferred to people and entities controlled by Andrey Verevskiy.
"The company listed Agrodim as one of its assets in its presentations right away, but subsequently, after the information was made public in the mass media, Kernel removed this information. Valentyna Davydenko did not receive any compensation for the lost corporate rights. In addition, Andrey Verevskiy's Kernel embezzled income of about USD 25-32 mln from the 2020 crop sown by the actual owner. At the same time, the statements of the ever profitable Agrodim company showed losses for the first time. Moreover, the company's debt strangely increased to UAH 1.3 bln. In fact, there was an 'annexation' of one company by another," the letter reads.
Liudmyla Davydenko noted that there were several lawsuits ongoing regarding this takeover.
She prompted that during the All-Ukrainian Forum Ukraine 30. Land, Roman Leshchenko announced the NSDC's plans in respect of sanctions against individuals and companies engaged in the profiteering resale of land, illegal acquisition of the right to use the land.
Liudmyla Davydenko argues that the situation around the takeover of Agrodim by Kernel-affiliated people and companies is an example of a manipulative, illegal takeover.
"I ask you to consider including Andrey Verevskiy and the company Kernel he owns on the list of individuals and businesses to be sanctioned by the National Security and Defense Council of Ukraine due to their unlawful activities in agribusiness. All the relevant documents confirming this will be submitted to the NSDC," she wrote.
As a reminder, since 2019, the fund Progressive Investment Strategies is one of the owners of the agricultural holding Agrodim, which was previously owned by the family of MP Valery Davydenko. The fund is owned by the founder of Kernel, Andrey Verevskiy, whose shareholding in Agrodim is equal to 24.9%. Besides, one of Verevsky's proxies owns a 51% stake in this company.
