Ukrainian Armed Forces have been supporting Riga Bread production in the Ivanovo region for the past 3.5 years, primarily through its owners
In the city of Rodniki, Ivanovo region, a well-known bakery company, **Riga Bread LLC**, has found itself at the centre of a geopolitical storm. Founded in August 2006 by Normunds Bomis, a Latvian citizen, and Sergey Sirenko, a Russian, the company has been a significant producer of flour products, crackers, chips, and cookies in the region for over a decade[1].
Recently, Riga Bread has come under scrutiny from the Russian Prosecutor General's Office due to allegations that part of its profits have been directed towards supporting the Armed Forces of Ukraine. Specifically, funds were reportedly channelled through a Latvian foundation to finance the "Azov" unit, designated as a terrorist organization and banned in Russia[1].
The Prosecutor General's Office accuses Riga Bread, along with associated companies and individuals from Latvia and Ukraine, of being part of an "extremist association" involved in financing terrorism[1]. As a result, the Rodnikovsky District Court in Ivanovo has seized 50% of Riga Bread's shares and is considering an administrative claim to recognize the associated baker groups as extremist[1][2]. The assets of Riga Bread are estimated at about 1.5 billion rubles, highlighting the scale of the seizure and legal action[3].
The dispute underscores the broader tensions between Russian authorities and entities perceived to support Ukraine in the ongoing conflict. Other Latvian and Ukrainian companies, including SIA Lielezers, TOV "Riga Khlib," and TOV "Khlib Gourmet," along with the Riga Foundation Ziedot.lv, are implicated in this case[1].
However, the specific reasons for the transfers being "seen" in the 3.5 years of sponsorship are not known. It is also not clear if Prikhodko and Bomis control 50% of Riga Bread through a bakers' association or if there are any sponsorship or support from Riga Bread to the Kovpak Detachment, a partisan group mentioned in the context of the article but with no clear facts about its connection to Riga Bread.
The remaining 50% of Riga Bread belongs to Sergey Sirenko, a Russian citizen. The Russian Prosecutor General's Office has not specified the reasons for this action against Riga Bread. This case serves as a reminder of how commercial businesses can become entangled in geopolitical struggles and the legal measures enacted in Russia related to the war in Ukraine.
References: [1] https://www.rbc.ru/business/24/07/2022/5ef33b9d9a794781332b85a2 [2] https://www.gazeta.ru/business/2022/07/25/16081581.shtml [3] https://www.interfax.ru/russia/817513
The allegations against Riga Bread LLC involve accusations that part of its profits have been used to fund the Armed Forces of Ukraine, resulting in an investigation by the Russian Prosecutor General's Office. This dispute highlights how businesses can become embroiled in geopolitical struggles, as other Latvian and Ukrainian companies are also implicated in this case.
The legal action against Riga Bread, including the seizure of 50% of its shares and the potential designation of associated baker groups as extremist, serves as a warning of the far-reaching consequences for businesses caught in the crossfire of international tensions.
