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Moscow Seizes Pasta Maker Makfa in Wartime Nationalization Sweep

Makfa pasta on display at a supermarket. Sergei Bulkin / TASS

A court in Russia’s Chelyabinsk region has ruled to hand over the assets of pasta manufacturer Makfa Group to the Russian state, the business news website RBC reported Wednesday.

Makfa’s seizure is the latest in what has been described as the Kremlin’s creeping drive of forced nationalizations since the February 2022 invasion of Ukraine, which saw scores of foreign companies leave the country in response.

Chelyabinsk’s Central District Court granted a request from the Russian Prosecutor General’s Office to seize the pasta maker on accusations that its owners had broken anti-corruption laws by running the business while holding political office.

Makfa’s main beneficiaries are the former Chelyabinsk regional Governor Mikhail Yurevich, who is a suspect in a bribery case, and former regional lawmaker Vadim Belousov, who was convicted on the same charges in 2022. 

Yurevich and Belousov are believed to be living abroad while Makfa, which the business partners built together in the 1990s and 2000s, continues operating as one of Russia’s most recognized pasta brands. In 2023, Makfa Group reported a yearly revenue of 23.7 billion rubles ($257.26 million). 

According to RBC, the defendants had sought unsuccessfully to avoid a closed-door hearing by transferring the case to an arbitration court. They had also offered to buy back the company and spend 1 billion rubles ($12 million) a year on Russia’s war in Ukraine as part of a settlement deal.

“Makfa completely disagrees with the decision and intends to appeal it in the near future,” the company’s lawyer Pavel Khlyustov told RBC, adding that he “sees grounds” to challenge the verdict with Russia’s Constitutional Court.

After Moscow launched its full-scale invasion of neighboring Ukraine, Russian authorities have sought to nationalize key assets in the country’s defense industry in a bid to command greater control over ramped-up military production. However, the sweep in asset seizures has increasingly targeted the civilian economy.

In March, the government took control of the country’s largest winemaker linked to an arrested billionaire whose business assets were confiscated earlier this year.

President Vladimir Putin has denied that Russia is witnessing concerted efforts to re-nationalize key parts of the economy.

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Estonia Summons Russian Envoy Over Alleged GPS Jamming

Tartu airport. airport.ee

Estonia on Wednesday summoned Russia's charge d'affaires over alleged GPS interference around its airspace, claiming that recent disruptions to civilian air traffic were "hybrid activity" orchestrated by Moscow.

Estonia and fellow Baltic states Latvia and Lithuania warned last month that widespread Russian GPS jamming was increasing the threat of an aviation accident occurring in their skies.

"Today we summoned [the] Russian charge d'affaires over GPS jamming which is a violation of regulations... and has caused serious damage to air traffic," Estonian Foreign Minister Margus Tsahkna wrote on X (formerly Twitter).

"Russia's hybrid activities that disrupt our normal lives in Estonia and Europe must end," he added.

Last month, the Finnish airline Finnair said it was suspending flights to the Estonian city of Tartu until May 31 due to GPS interference  which it said had forced two of its flights to return to Helsinki.

Finnair said at the time that in the interim "an alternative approach solution that doesn't require a GPS signal can be put in place at Tartu Airport."

It added that GPS interference can "prevent the aircraft from approaching and landing," but also noted that interference "is quite common in the area."

Finnair is the only airline operating international flights to the airport in Tartu.


Arrested Russian Deputy Defense Minister Accused of Accepting $12 Mln Bribe, Lawyer Says

Deputy Defense Minister Timur Ivanov in court. t.me/moscowcourts

Russian Deputy Defense Minister Timur Ivanov has been accused of accepting a bribe “in the form of services” valued at more than 1 billion rubles ($12.2 million), Russian media reported Wednesday.

Ivanov, 48, faces up to 15 years in prison for large-scale bribe-taking, which investigators say centers around a “criminal conspiracy” to accept funds “in the form of property services during the course of contracting and subcontracting work for the Defense Ministry.” 

Ivanov, who is viewed as a close ally of Russian Defense Minister Sergei Shoigu, has denied the allegations.

His attorney Murad Musayev told the state-run TASS news agency that the services his client was accused of accepting were “the cost of work and the materials spent on it,” all valued at around 1.12 billion rubles.

“The criminal case is related to construction. A number of Defense Ministry contractors are alleged to have built certain facilities for Ivanov, which we emphasize is not true,” Musayev said without elaborating.

Ivanov oversaw construction, housing, property management, mortgages, and procurement for the Russian military. He was credited with seeing through the construction of the Defense Ministry’s military-themed Patriot Park, the Armed Forces’ Main Cathedral on the park’s grounds, as well as the reconstruction of the Ukrainian city of Mariupol after its siege and occupation.

“Apparently the root of this case is in media publications from around a year ago compromising him,” Musayev told state media, seemingly referring to investigative reports alleging the deputy defense minister and his family acquired vast wealth through kickbacks on military contracts.

On Wednesday, the Moscow City Court held an appeal hearing behind closed doors, in which it rejected Ivanov’s request to be placed under house arrest. A court spokesperson told reporters that Musayev had sought unsuccessfully to open the hearing to the public, according to the independent news website Mediazona.

The Moscow City Court court also upheld a previous ruling to keep the deputy defense minister in pre-trial detention until June 23. 

Bribery cases, unlike national security trials including treason and espionage, are not usually held behind closed doors.

Russia’s independent investigative news outlet IStories cited two anonymous sources as saying that Ivanov was also suspected of state treason. The Kremlin dismissed the report as “speculation.”

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