Putin Transfers Glavprodukt to Temporary State Management

By decree of President Vladimir Putin, temporary management is being introduced at the company that produces canned goods, Glavprodukt (it produces stewed meat, pates, porridge, sprats, vegetables, and condensed milk). The document is posted on the legal information portal.

In accordance with the document, 100% of the shares in the authorized capital of the limited liability company (LLC) Glavprodukt, owned by the joint-stock company (JSC) Glavprodukt (owner of Promselkhozinvest LLC), as well as Glavprodukt-patent LLC (owner of Iniversal Company 2000, USA) will be transferred.

The state also acquired shares and stakes in other canned food producers:

• The Baltic Canning Plant LLC, its owner, United Canning Plants LLC, also came under state control;
• JSC "Orelproduct";
• JSC Verkhovsky Dairy Canning Plant.

The above-mentioned companies are also owned by Promselkhozinvest, and it and another of its daughters, OOO Ob'edinennaya Industrialnaya Kompaniya, have also come under state control. The owner of Promselkhozinvest is Universal Beverage Company (USA).

Last year, Business Journal sources reported that Glavprodukt could come under state control due to the company’s American origins.

JSC Glavprodukt was founded in 1999. The founder of the company is Leonid Smirnov. He was born in the USSR, moved to the USA in the 1970s, did business there, and came to Russia in 1995, where he first started producing yoghurts and then canned goods. In 2007, a criminal case was opened for non-payment of taxes by the holding company, and it was reported that Smirnov then left for Germany.

In 2007, Kommersant wrote that the holding was a supplier to the Ministry of Defense .

According to RBC Companies, the company is headed by Olesya Filippova, and Promselkhozinvest is headed by Vasily Tikhonov.

The company's product portfolio includes more than 500 items: stewed meat, pates, sprats, Baltic sprat, other canned fish, canned sausages, ham and other meat products, ready meals (meatballs, goulash, borscht, etc. ), cereals, condensed milk, canned beans, corn, peas, tomatoes and cucumbers, vegetable snacks, canned fruit, sauces.

Over the past two years, several large Russian companies have come under state control. Among them are pasta producer AO Makfa (the company was founded by former Chelyabinsk Region Governor Mikhail Yurevich) and the Baltika brewery (owned by Denmark's Carlsberg).