Rusagro founder Vadim Moskovich. Photo: Sergey Fadeichev/TASS
Russian authorities have detained billionaire Vadim Moskovich in a criminal case of large-scale fraud. Following the searches, Rusagro’s shares fell by almost 20%.
Detention and investigation
On Wednesday, security forces detained Rusagro founder Vadim Moskovich in Moscow, Vedomosti reports, citing sources close to the investigation. At the same time, large-scale searches are underway at the company’s offices, and the Investigation Department of the Russian Interior Ministry is conducting investigative actions. This was reported by Russian media and Reuters.
According to the sources, the case concerns an economic crime under the article on fraud on a particularly large scale (part 4 of Article 159 of the Criminal Code of the Russian Federation). If convicted, the billionaire faces up to 10 years in prison.
Rusagro CEO Timur Lipatov may become the second person involved in the case. It is also reported that several people have been detained as part of the criminal proceedings.
Stock market crash
Following the news of Moskovich’s detention, Rusagro’s shares on the Moscow Exchange fell 19.2% to RUB 182.8 per share. By comparison, the Moscow Exchange index fell by only 0.04% at the same time.
This is the most significant drop in the company’s stock price since its recent listing on the Russian stock exchange.
Rusagro’s official response
Rusagro confirmed the inspections at its offices and stated that the situation was not related to the company’s current operations.
“We fully comply with the law and are ready to cooperate with the competent authorities,” Rusagro said in an official statement.
The company also stressed that all its business processes are continuing as normal, and financial obligations are being met in full.
