The Odesa grain terminal is accused of misappropriating $25 million

The company Innovatus Capital Partners has accused GNT Group, which owns and manages the grain port terminal “Olympex Coupe International” in Odesa, of fraud. GNT says the grain was spoiling.

As reported by the Innovatus Capital Partners company, since February 24, 2022, grain that was pledged to Innovatus was stored at the facilities of the Olympex grain terminal. According to the results of the investigation, it turned out that the grain was looted and sold. The total amount of grain and other stocks is estimated at $25 million.

“‎The GNT’s use of war as a means of embezzling funds that do not belong to them is appalling. Unfortunately, this type of corruption affects all Ukrainians,” said Ana Firmato, managing director of Innovatus.

GNT rejects the accusations and states that immediately after the start of the war, on February 25, 2022, Innovatus was informed of the impossibility of ensuring grain preservation and quality control due to military risks.

So, already on May 13, the international inspection and certification company Bureau Veritas conducted an inspection of this grain and discovered and documented its spoilage.

“Wet grain in a closed space can be explosive if a projectile hits the silo. Therefore, the management of the terminal decided to immediately take out the damaged grain for disposal. It should also be noted that a similar inspection was carried out by the Cotecna company in February 2022, before the start of the war, which confirmed the presence of grain pledged by Innovatus at the terminal’s facilities,” GNT said.

It is noted that after the start of the “grain corridor” work, fresh batches of grain were returned to the facilities of the “Olympex” terminal.‎

Since the beginning of October, the management of GNT Group has continued negotiations regarding the repayment of debt in the amount of $20 million to Innovatus.

However, at this time the company cannot complete debt repayment due to blocking by another creditor, Argentem Creek Partners LP, which requires repayment of debts on Pari Passu (equal) terms, GNT noted.

“‎On December 13, 2022, GNT Group confirmed its desire to repay the debt to Innovatus Capital Partners in communications with the managing director of the fund, Ana Firmato, but the consent for this was not received from Argentem Creek Partners LP. Negotiations will continue,” GNT said.

“Olympex Coupe International” was built in Odesa port back in 2000. As the press service of the company noted, one of the ten largest grain terminals in Ukraine was built from scratch in more than 20 years. All this time, GNT Group cooperated with large international companies and financial institutions. The volume of investments in the development of the terminal reached more than $80 million. For example, from 2009 to 2019, the project involved credit funds from the international company CHS Inc. and the European Bank for Reconstruction and Development (EBRD).