Mazepin reduces stake in UralChem to below 50%, steps down as CEO

MOSCOW. March 11 (Interfax) - Russian businessman Dmitry Mazepin, who has been hit by European Union sanctions, has reduced his stake in the chemical producer to less than a controlling interest, the company reported.

Mazepin has sold a controlling stake of 52% in Uralchem Fundamental Chemical Company LLC, which wholly owns UralChem JSC, one of Russia's largest fertilizer producers, thus reducing his interest in the LLC to 48%. The buyer of the stake was not named.

Mazepin has also resigned from his position as CEO of UralChem JSC. He will be replaced by Dmitry Konyaev, who previously chaired the board of directors of Uralchem JSC. Konyaev will be replaced as the board chair at Uralchem JSC by Dimitry Tatyanin, who previously served as deputy chairman of the board.

UralChem has plants in Voskresensk, Moscow Region and Kirovo-Chepetsk, Kirov Region, and two enterprises in Perm Territory. UralChem also owns one of the largest potash producers in the world, Uralkali . Mazepin also served on Uralkali's board of directors and the company has not announced any changes yet.

A company controlled by UralChem, JSC Khimaktivinvest acquired 70.8% of Togliattiazot , a major ammonia producer, at two auctions in February.

Europe accounts for 25-30% of UralChem's exports, VTB Capital estimated. The company also transships fertilizer through terminals it controls in Riga and Ventspils, Latvia.