You're reading: Ivaniushchenko, Yanukovych’s acquaintance, denies ownership in Khlib Investbud

Party of Regions lawmaker Yuriy Ivaniushchenko praised Khlib Investbud, a controversial grain trader with an unclear ownership structure, but denied having interests in the company that many insiders and diplomats connect him with.

A longtime acquaintance of President Viktor Yanukovych, the publicity-shy Ivaniushchenko has broken his silence surrounding his alleged involvement with Khlib Investbud, a quasi-state company that is majority owned by mysterious private investors.

Yuriy Ivaniushchenko, member of Parliament, also gives advice to Ukrainian Agriculture Minister Mykola Prysyazhnyuk (above).

Many agriculture market participants said the government heavily favored the trader last fall as it restricted grain exports and introduced quotas, a large share of which went to this company. In addition, Ukraine’s government selected Khlib Investbud as the single agent supplying grain to the national grain reserve.

Responding to emailed questions from the Kyiv Post, the native of the Donetsk region town of Yenakiyeve – also Yanukovych’s hometown – expressed his support for Khlib Investbud, commending it for the role it plays in the Ukrainian grain market.

Despite numerous speculations, Khlib Investbud is, first and foremost, a state company with a mission that’s perfectly clear to me – trying to establish clear rules of play on the market.”

– Yuriy Ivaniushchenko, member of Parliament.

“Despite numerous speculations, Khlib Investbud is, first and foremost, a state company with a mission that’s perfectly clear to me – trying to establish clear rules of play on the market,” he said.

Ivaniushchenko said: “This is not my company.” But the lawmaker does confirm having business interests in Ukraine’s multibillion-dollar agriculture sector, emphasizing his desire for transparency and a level playing field. In his view, there was none of that on the market before this grain trading company, the ownership and role of which remains unclear, stepped in.

“There used to be a very specific collusion of several large [grain] traders, which deprived our producers of income. Khlib Investbud proposed different rules, which led to the PR attack [against the it],” he explained.

As a market player, I naturally tell the minister and his subordinates my view on the market’s development, but all the market players are doing this. It’s always been like that.”

– Yuriy Ivaniushchenko, member of Parliament.

Ivaniushchenko also commented on the nature of his relationship with Agriculture Minister Mykola Prysyazhnyuk, saying they have “quite comfortable and friendly relationships.”

The lawmaker categorically denied, however, that he in any way influences Prysyazhnyuk.

“What naivete! Don’t you know that the decision-making process in the Cabinet of Ministers is a process with many necessary stages of approval? Please, don’t ascribe some mythical abilities to me,” Ivaniushchenko said. “As a market player, I naturally tell the minister and his subordinates my view on the market’s development, but all the market players are doing this. It’s always been like that.”

During an interview last week with the Kyiv Post, Prysyazhnyuk promised to provide information revealing Khlib Investbud’s beneficiary ownership, as well as the breakdown of this season’s actual grain exports by different grain trading companies. Ten days later, as this issue of the Kyiv Post went to print, the information still hadn’t been received.

Don’t you know that the decision-making process in the Cabinet of Ministers is a process with many necessary stages of approval? Please, don’t ascribe some mythical abilities to me.”

– Yuriy Ivaniushchenko, member of Parliament.

Ivaniushchenko’s side of the story is radically different from what many domestic and foreign business associations and market insiders claim. Where the lawmaker sees clear rules of play, others see lack of transparency and possible corruption.

Morgan Williams, president of the U.S.-Ukraine Business Council, called imposing the grain export restrictions in Ukraine the “Great Grain Robbery,” while the subsequent quota allocations, according to him, lack “any sort of transparency or accountability.”

This and the fact that most international traders have been excluded from the export market “leads the major players in the market sector to logically assume that corruption and control is the driving force,” said Williams.

Jorge Zukoski, president of the American Chamber of Commerce in Ukraine, also claims that foreign grain traders are getting unfair treatment by the government.

“A group of companies received [grain export] quotas for free, while others would have to pay for them at auctions,” said Zukoski, referring to the legislation amendments passed by the parliament in early April. “The main beneficiary of this was a quasi-state company Khlib Investbud.”

Read also ‘On The Hot Seat’ interview with Agriculture Minister Mykola Prysyazhnyuk.

Kyiv Post staff writer Vlad Lavrov can be reached at [email protected].

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