Russian Billionaire Vadim Moshkovich Faces Fraud Charges Amidst Rusagro Scandal

Russian prosecutors seek to detain billionaire Vadim Moshkovich over large-scale fraud allegations. The co-founder of agriculture giant Rusagro is accused amid a conflict with Solnechny Produkti. Searches of several Rusagro offices occurred as related issues with the company's Cyprus-based ownership surfaced.

Billionaire Vadim Moshkovich, founder of Russia's leading agriculture company Rusagro, is facing legal turmoil as prosecutors requested his pre-trial detention for large-scale fraud. Despite his denial of the charges, Moshkovich's arrest and subsequent office raids sent shockwaves through the industry, plummeting Rusagro's shares by 18%.

The charges appear linked to a longstanding conflict with Solnechny Produkti, a major supplier of vegetable oils and fats. This development comes amid significant changes in Rusagro's corporate structure, prompted by recent legislation requiring foreign-registered businesses to re-domicile within Russia.

Founded amid Russia's post-Soviet economic tumult, Rusagro has grown into a powerhouse, cultivating vast tracts of land and leading in sugar, meat, and oil production. As scrutiny intensifies, the company emphasizes its compliance with laws, promising cooperation with authorities and maintaining business as usual despite looming legal challenges.

(With inputs from agencies.)