09 December 2021, Thursday, 13:56 356

Speculative investments against farmers: what does Gramercy Funds Management LLC's claim against Ukrlandfarming mean?

Oleksandr Mazur

Oleg Bakhmatyuk. Photo by ulf.com.ua

Gramercy Funds Management LLC, 'an American investment company in emerging markets,' as they call themselves, has filed a complaint in a US federal court against Oleg Bakhmatyuk, a shareholder of an Ukrlandfarming group of companies that is one of the largest Ukrainian agricultural holdings, and American businessman Nicholas Piazzi. Gramercy calls itself an investor in Ukrlandfarming and says it is being prevented from "getting its investment back." Ukrlandfarming strongly rejects the claims and declares its readiness to defend itself in international courts.

Since yesterday, the Ukrainian media have been receiving press releases on the claim from Gramercy Funds Management LLC. Obviously, Gramercy has launched a certain PR campaign against the Ukrainian enterprise, although the claim should be considered exclusively in the legal field, as well as any other business suit. Why Gramercy needed media support is a separate question. But since one of the largest Ukrainian employers and taxpayers is involved, we should be interested in the very claim's essence and its legal prospects.

The fact is that Gramercy Funds Management LLC is a speculative capital, not a classic investor. While Ukrlandfarming was being in default, Gramercy bought its bonds at 29 cents per dollar. Having gained control over part of the bonds three times cheaper, the company is trying to get even more than the billion dollars mentioned in the lawsuit (which as such is absurd taken these conditions). Gramercy is eager to get thrice the sum, since in a press release intended for Western markets they declare claims for " triple compensation". The point is omitted in Ukrainian version, obviously to avoid exasperating the Ukrainian society. Thus, Gramercy is not just trying to take control of the Ukrainian company's assets, but also violating the real, classic investors' rights.

Apparently, Gramercy's statements that some assets have allegedly been withdrawn from Ukraine to violate this particular investor's rights are impossible to prove: in fact, all the Ukrlandfarming assets, including thousands of production facilities and equipment, are located in Ukraine and never went missing.

Meanwhile, in Ukraine the case against the Ukrlandfarming shareholder has nearly fell apart. Hence, the Gramercy Funds Management LLC current actions, including the lawsuit with a rather vague perspective, and an information campaign providing press releases to Western and Ukrainian media should be viewed primarily as an attempt of economic blackmailing in order to obtain preferences over other investors.

Больше новостей о: UkrLandFarming Oleg Bakhmatyuk Gramercy Funds Management LLC Nicholas Piazzi