Despite its status as a highly successful business in Ukraine, earlier this year Ovostar, a leading producer of shell eggs, one of the top 5 egg producers in Europe, and supplier to more than 50 countries worldwide became subject to raider attacks in an attempt to seize control of the company.
Since a significant portion of Ovostar’s shares are owned by Canadian investors, Larisa Galadza, Ambassador of Canada to Ukraine, wrote an open letter to Ukrainian Prime Minister Denys Shmyhal, requesting that he direct his attention to the “ongoing pressure” Ovostar faces. She also warns of the negative effect this could have on Ukraine’s investment attractiveness.
In the letter, Larisa Galadza offers background information on the issue and stresses the importance of Ovostar, stating that “Ovostar Union is a Ukrainian investment success story”. In 2018, Ovostar purchased the distressed assets of MakarOVO, a company forced into bankruptcy due to poor management. Now, the raiders accuse Ovostar of orchestrating that bankruptcy. The Ambassador of Canada to Ukraine calls for protection of foreign investors’ rights in Ukraine, urging judicial institutions to settle Ovostar’s case “without the third-party involvement”.