Russia 'closes Ukrainian Roshen chocolate factory'

Anti government protesters attend a rally on Independence square Roshen's owner Petro Poroshenko is a pro-European politician

Russian authorities have taken over a Ukrainian-owned sweet factory in the southern Russian city of Lipetsk, Ukraine's government says.

Russian riot police moved in on the Roshen factory and halted production on Wednesday, the finance and economic ministries said.

A spokesperson for the firm confirmed the "plant is closed".

Roshen is controlled by Ukrainian businessman and pro-European MP Petro Poroshenko.

He is planning to stand in May's presidential elections.

Ukraine's finance and economic ministries said Russian authorities had shown no documentation giving them the right "to burst on to the company's property and halt production".

Alexander Zolotarev, press spokesman for Roshen CIS, said the Lipetsk plant closed after police arrived and sent all the workers home.

'Chocolate war'

Last July, Russia's consumer watchdog banned sales of Roshen sweets, citing health concerns.

But many observers thought it to be Moscow's response to Mr Poroshenko's political activities rather than concern for the welfare of Russia's chocolate fans. The ban was eventually lifted in November.

Mr Poroshenko was among opposition figures in Ukraine who called for the country to resist Russia's invitation to join the Moscow-led Customs Union and instead integrate with Europe.

Petro Poroshenko - file pic Petro Poroshenko has occupied top posts in Ukrainian politics

Ukraine's seventh richest man, according to Forbes magazine, with an estimated fortune of $1.3bn (£787m), Mr Poroshenko was a supporter of the Maidan protests that ultimately led to the overthrow of Ukraine's president Viktor Yanukovych last month.

The factory's closure comes at a time of high tensions between Ukraine and Russia following the outcome of Sunday's referendum in Crimea to secede from Ukraine and join the Russian Federation.

Angered by what is sees as Russian intervention on Ukrainian territory, the US and the EU are considering escalating sanctions against those it suspects of playing a part in the crisis.

Russia says Crimeans voted overwhelmingly to join the Federation and so the result of the referendum should be respected. Foreign Minister Sergei Lavrov said sanctions would be "illegitimate".

More on This Story

More Business stories

RSS

BBC Business Live

  1.  
    Via Twitter Lauren Davidson, business reporter at The Telegraph

    tweets: "From Times Mag profile last month: CEO Harriet Green fixed Thomas Cook, earned less than her male predecessor."

     
  2.  
    07:40: Thomas Cook
    Green

    A little more on Harriet Green's departure from Thomas Cook. "I always said that I would move on to another company with fresh challenges once my work was complete," she says. "That time is now." The statement adds that when Ms Green joined, the company's share price was 14p. Today, it is 137.9p.

     
  3.  
    Via Twitter Simon Jack Business correspondent, BBC News

    tweets: "Harriet Green steps down as CEO of Thomas Cook after only 2 years. She once told me she never stays anywhere for long but this is very brief."

     
  4.  
    07:30: Thomas Cook
    Thomas Cook

    Overall, Thomas Cook, which has been struggling to compete with the rise of internet travel agents, made a statutory pre-tax loss of £114m for the year to the end of September. It's an improvement on the year before, when it made a £163m loss.

     
  5.  
    07:24: Compass profits
    Students receive their lunch at Salusbury Primary School in northwest London

    Global catering and support services firm Compass group - if you have never eaten their food, there is a very strong chance your children will have eaten it at school - has reported a 5.4% rise in pre-tax profits to £1.16bn for the year to the end of September. "Food is and will remain our core competence and is backed with some strong support service businesses," the company says.

     
  6.  
    07:18: SAS enlists Flybe
    SAS

    British low-cost airline Flybe has announced it has signed an agreement with Scandinavian carrier SAS, to operate some of its short haul services. It's a white-label deal, meaning SAS insignia will be displayed on the planes, and the flights will seem to the outsider like a regular SAS service.

     
  7.  
    07:08: Thomas Cook

    Holiday travel company Thomas Cook has announced that its boss, Harriet Green, is to step down. She will be replaced by Peter Fankhauser, currently the chief operating officer. Ms Green only joined the firm two years ago.

     
  8.  
    07:04: Royal Mail goes to Parliament

    That's all happening at 9:30, by the way.

     
  9.  
    Royal Mail goes to Parliament 07:02: Via Blog Kamal Ahmed BBC Business editor

    Royal Mail chief executive, Moya Greene, will for the first time appear in public to make the case about why the universal, UK-wide postal service is in imminent danger. And if the written evidence Royal Mail has sent to the committee is anything to go by, her words will certainly be punchy. The written evidence calls for urgent intervention by regulator Ofcom and warns if not: "A tipping point could be reached. The universal service could become unviable before effective changes can be implemented."

     
  10.  
    06:52: Bank culture Radio 5 live
    UBS

    One more from Lord McFall on Wake Up to Money. He says senior managers at banks "have often pleaded ignorance or stupidity rather than culpability" and that has to change. He cites an example of four top executives at Swiss bank UBS who came before the Committee on Banking Standards. Asked if they knew the name of their "star performer" who had just lost the bank $2bn, they replied that they didn't, he says. "The first they had heard of it was on the Bloomberg wires," Lord McFall adds.

     
  11.  
    06:46: BG boss' pay BBC Radio 4

    Mr Walker adds that BG Group's pay offer illustrates "poor corporate governance", and "puts fund managers in a position where they are forced to approve" the £25m remuneration package for new boss Helge Lund.

     
  12.  
    06:44: Bank culture Radio 5 live
    Air force

    The £27bn that banks have paid in fines for the mis-selling of Payment Protection Insurance (PPI) outstrips this year's defence budget, says Lord McFall. Since the start of the financial crisis, banks have paid out more than £38bn in fines, for a litany of sins. What makes matters worse is that he and other MPs were warning the banks over the dangers of PPI for 20 years, before the mis-selling scandal broke, he adds.

     
  13.  
    06:32: BG boss' pay BBC Radio 4
    Mr Lund

    "A red rag to anti-capitalists," is what Simon Walker, from the Institute of Directors (IoD), calls the proposed £25m pay packet for the incoming head of gas explorer BG Group, Helge Lund. He tells Today "you could not calculate a measure that is more likely to inflame" politicians, and the general public, who will balk at the sum, which is "more than 10 times [Mr Lund's] pay in Norway", where Mr Lund ran the state's oil firm.

     
  14.  
    06:24: Bank culture Radio 5 live
    McFall

    Lord McFall tells Wake Up to Money initiatives to change the culture in banks are "fledging and fragile". He adds: "Rhetoric at the top has been implemented, but not carried down the line [into bank departments]". The aggressive sales culture of the banks will be eliminated eventually. But the banks can't do it alone, he adds. He is also calling on the banks to provide annual progress reports to Parliament's Banking Standards Committee.

     
  15.  
    06:14: Welfare reforms

    The UK's National Audit Office has warned that the cost of introducing major welfare reforms could run into billions of pounds if the IT system needed to deliver the changes isn't completed on time. The Universal Credit programme has been beset by IT problems, and the chairman of the public accounts committee, Margaret Hodge, has accused the government of throwing good money after bad. Ministers insist they are getting value for money.

     
  16.  
    06:10: Bank culture Radio 5 live

    UK think tank New City Agenda says it will take "a generation" to fix the culture of the banking industry, in a report published today. The organisation's chairman, Lord McFall, who is also former chairman of the Treasury Select Committee, tells Wake Up to Money the report is the first to have gone inside the banks - it visited 11 of them - so provides a real insight into what is going on, and it's not pretty.

     
  17.  
    06:05: Clegg on immigration
    Clegg

    The UK's deputy prime minister, Nick Clegg, has said he supports further restrictions on benefit payments to migrants from elsewhere in the European Union. Writing in the Financial Times, the Liberal Democrat leader also warns David Cameron against trying to limit the number of EU migrants coming to the UK.

     
  18.  
    06:00: Matthew West Business Reporter

    Plus Moya Greene, chief executive of the Royal Mail, will be giving evidence to the Business Committee - as will a number of her rivals - on competition in the postal sector and the government-mandated obligation to deliver to all UK addresses. As always, get in touch on email at bizlivepage@bbc.co.uk or on Twitter @bbcbusiness.

     
  19.  
    06:00: Joe Miller Business Reporter

    Morning. The president of the European Commission, Jean-Claude Juncker, will set out details this morning of a €300bn plan intended to revive Europe's flagging economy. Most of the money is expected to be provided by the private sector. More on that in the next few hours.

     

Features

From BBC Capital

Programmes

  • Ladybird - a robot designed to help with farm workClick Watch

    From weed detecting to a robotic dairy - the tech that could help farmers be more efficient

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.