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Rusagro tumbles 32% over two days in Moscow trade

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Founder Moshkovich detained for fraud

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Rusagro says it complies with the law

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Case connected with vegetable oil producer - media

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By Guy Faulconbridge

MOSCOW, March 27 (Reuters) -

Russian agricultural producer Rusagro has lost nearly a

third of its value on the Moscow stock exchange in the past two

days since news of the arrest of its billionaire founder Vadim

Moshkovich emerged.

Moshkovich, 57, is the most prominent businessman to be

arrested in Russia for years. His detention follows a conflict

with the founders of a major supplier of vegetable oils and fats

whose assets were bought in 2018 by Rusagro, according to two of

Russia's most respected media outlets, Kommersant and RBC.

Rusagro shares fell to an intra-day low of 156.32 roubles on

Thursday, down more than 32% from the open on 230.50 roubles on

Wednesday, according to data from the MOEX exchange.

Russian media reported that police had charged Moshkovich

with large-scale fraud. He is Russia's 55th richest businessman,

according to Forbes, with a fortune of $2.3 billion.

Kommersant said officers from the Federal Security

Service (FSB) and anti-corruption police raided offices of the

company in Moscow and other cities, as well as the homes of

senior managers, and took away files, phones and servers.

Rusagro is Russia's leading producer of sugar, meat, oil

and fats. The company issued a statement on Wednesday confirming

several of its offices had been searched but saying the

operation was not related to its "current activities". It did

not mention Moshkovich.

"We understand that this situation may raise questions

among our clients, partners and employees, so we hasten to

assure you: the company fully complies with the law and is ready

to provide all necessary assistance to authorised bodies," it

said.

It said all company activities were continuing as

normal, and all obligations were being met. "We are confident in

the transparency of our work and expect the procedures to be

completed as soon as possible."

Moshkovich was sanctioned by the European Union in 2022

after attending a meeting between businessmen and President

Vladimir Putin on the day that Russia invaded Ukraine. The EU

said he had Russian and Cypriot passports.

Following the sanctions, Moshkovich resigned as chairman

of Rusagro in 2022 and cut his stake below 50%. Rusagro, which

is not under Western sanctions, is Russia's only major listed

agricultural company.

Rusagro changed its domicile from Cyprus to Russia,

following a Russian court decision in a case brought by the

Agriculture Ministry against Rusagro's Cyprus-based parent

company.

A group of members of the lower house of Russian

parliament asked the Justice Ministry in 2024 to designate

Moshkovich as "foreign agent", a legal status often assigned to

opposition activists, due to the company's Cyprus domicile.