Beneficiaries of TEDIS Ukraine addressed to President, Prosecutor General and Minister of Internal Affairs of Ukraine

3 april 2017
In the light of the current events on the Ukraine’ tobacco market, foreign holders of a considerable share of the Ukrainian company TEDIS Ukraine Richard Duxbury and Richard Dorian Fenhalls addressed to the President of Ukraine Petro Poroshenko, the Prosecutor General Yurii Lutsenko and the Miniser of Internal Affairs Arsen Avakov in order to protect the foreign investors’ interests and their business in Ukraine.

“On 31 March 2017, we learnt from management that all bank’ accounts of the company were arrested, and inventory with an approximate value over 1 bln. hryvnias were expropriated. This has obviously resulted in the immobilisation of the business of the company. If this situation continues, this will have an impact on the business, its commercial partners, the welfare of its employees and, ultimately, the value of our investment.

We note that this may also send a strong message to all foreign investors contributing to the Ukrainian economy. We encourage Mr. President to reinstate the fair balance of interests between the business and government so that TEDIS UKRAINE can resume operations for the benefit of all stakeholders as soon as possible”, stated the owners in their appeal to the President of Ukraine.

TEDIS Ukraine Company is always open, as much as possible, to the state and government authorities, non-governmental organizations, business partners and investors. However the latest high-profile events covered widely in the media, forced foreign owners of the company issue a public statement on unprecedented violation of the company’s legal rights and interests.

Since early 2016, TEDIS Ukraine company has been under pressure of various supervisory authorities which has considerably complicated its operational activities. The history and methods of investigative actions clearly indicate grave violation of legal rights of TEDIS Ukraine Company and of its owners. The recent events complicate fulfilling the company’s obligations to its partners, including international ones, and, consequently, will lead to the budget of Ukraine receiving less tax revenue. Every day of the company’s standstill entails losses of the budget revenue to the amount of approximately 25 mln. UAH.

Currently the company is operating and is getting back to working under ordinary operational conditions; the work of all the departments has been restored. 

TEDIS Ukraine is one of the largest distribution companies of Ukraine, its personnel numbers over 2,600 people. According to the State Fiscal Service, TEDIS Ukraine is one of the largest taxpayers of Ukraine and has become the budget forming enterprise in several regions. Thus, the company contributed almost 4 bln. UAH to the budgets of all levels in 2014-2016.