Strona glowna > Centrum prasowe > Komunikaty prasowe > UPDATE ON THE RESULTS OF THE MILITARY CONFLIC ON AGROTON


Based on the provisions of the relevant laws and regulations, and aiming at keeping its shareholders and the investment public at large updated with current developments, the Board of Directors of Agroton Public Ltd (“Agroton”, the “Company”) announces that despite the Company’s best efforts to undertake a normal production and harvesting campaign this year, the military conflict in Luhansk region continues to significantly impact and disrupt its operations.

Agroton’s poultry business, entirely located on the territory controlled by separatists, will be discontinued. This will result in over USD 15 million in written off assets. Agroton is unable to sustain this business line due to day-to-day bombings, artillery events, gas disruptions and electricity outages.

Furthermore, the Company is unable to control and has limited access to approximately 20,000 hectares of its land due to the presence of armed separatist groups there.  These 20,000 hectares are located on territory controlled by armed militia groups who are unpredictable to deal with, often uncooperative or outright hostile.

As a consequence of the separatist military conflict with the Ukrainian military in the region where the Company is located, several vital roadways and railway connections for the Company have been destroyed.  Agroton now carries addition distribution expenses at the level of USD 30-50 per tonne of harvested agricultural crops as no one is willing to take delivery from the Company’s facilities due to the regional military situation.

There may be additional material write-offs of assets that are located on the territory controlled by armed separatist groups. The Company will make further announcements as soon as it is in a position to evaluate the effect of the aforementioned events on its financial condition and its financial results for this fiscal year, or when further material developments occur.