The Presidentʼs Office helped American investors gain control of one of the largest grain terminals in Odesa

American investment funds Argentem Creek Partners and Innovatus Capital Partners have acquired the Olimpex terminal in the port of Odesa after winning a case of alleged fraud. They were assisted in this by the Office of the President of Ukraine.

The Financial Times writes about this.

American investors plan to restart a key Ukrainian grain export terminal in September, a test of Ukraineʼs ability to raise capital to rebuild its economy in its fourth year of full-scale war.

As official funding for Ukraine’s military effort becomes increasingly uncertain, President Volodymyr Zelensky’s team is trying to convince private investors to participate in riskier projects. But they also need to convince that Ukraine provides legal protections and is winning its internal war on corruption.

The president’s office recently helped two American foundations collect $95 million in debt from Odesa businessmen who previously owned a terminal and defaulted on loans. They also allegedly provided false information about grain that was supposed to serve as collateral during the chaos caused by the Russian invasion.

Following the arrest in May of one of the businessmen Volodymyr Naumenko on fraud charges by creditors, Ukraine’s Supreme Court approved the transfer of the grain terminal on July 9. Its annual capacity is about 5 million tons, making it one of the largest in the country. The American funds had previously won an international arbitration for $150 million and several decisions by UK courts, but faced a long battle in Ukrainian courts before being awarded the rights to the terminal on Wednesday.

"Our role in this case was purely coordinating — we drew the attention of the relevant authorities. This case is another confirmation that Ukraine is a state governed by the rule of law," said the head of the Office of the President of Ukraine Andriy Yermak.

Prosecutors allege that GNT, Naumenko’s group that owned the terminal, defrauded Innovatus of a $20 million loan, in part through a scheme that falsely claimed to have grain as collateral and then “simulated the destruction” of the allegedly spoiled product in the months following the Russian invasion.

“It all started with the disappearance of pledged grain [...], which, according to speculation, was burned at a company in Sumy — hundreds of kilometers from Odessa, almost in the very zone of hostilities, and by a company that never paid for either electricity or gas,” said Argentem Creek partner John Patton.

GNT denies any wrongdoing and accuses Argentem Creek of using loans to organize a raider takeover of the terminal. Naumenkoʼs partner Serhiy Hroza told Ukrainian media that the case was "fabricated" and "based solely on orders from above".

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