Poroshenko's advisors publish scheme for restructuring 85% of Roshen shares held by president

Prime Assets Capital, the beneficiary of which is Ukrainian President Petro Poroshenko, having transferred 85% of shares in Roshen Confectionary Corporation to Rothschild Trust management on March 25, 2016, has become the holder of the shares via a chain of companies: on British Virgin Islands, Cyprus and the Netherlands.

According to the materials passed by Poroshenko's advisors to Interfax-Ukraine on Tuesday, a total of four transactions were settled.

Prime Assets Capital used 85% of shares in Central European Confectionary company LLC (CECC), the holding company of Roshen, to pay for an additional issue of shares of Cypriot CEE Confectionary Investments Limited earlier fully belonged to Prime Asset Partners Limited (PAP) created by Poroshenko.

Later the Cypriot company exchanged this stake in the Ukrainian company for an additional issue of shares in Dutch Roshen Europe B.V., which finally became a direct owner of 85% in CECC.

The third transaction was the acquisition of Prime Asset Partners Limited by Prime Assets Capital from Poroshenko. This only deal was paid using cash (hryvnias) on the territory of Ukraine.

The final transaction was the exchange of shares in Cypriot CEE Confectionary Investments Limited for an additional issue of shares in Prime Asset Partners Limited by the Ukrainian fund.

"After the restructuring, as of May 25, 2016, the Dutch company was the owner of Ukrainian corporate rights, the owner the Dutch company is the Cypriot company. The owner of Cypriot shares was PAP and the owner of PAP was the Ukrainian fund," say the documents.

The advisors also published the statement of Baker & McKenzie law firm that was involved to assess the corporate restructuring scheme. The company confirmed the absence of money laundering transactions in the scheme. The scheme is in line with Ukrainian law.