25 Mar 2022 18:10

U.S.-sanctioned Gleb Frank sells controlling stakes in Russian Fishery, Russian Crab Group, resigns as chairman of the boards of directors

MOSCOW. March 25 (Interfax) - Gleb Frank, who is subject to United States sanctions, has sold his controlling stakes in Russian Fishery Company (RFC) and Russian Crab Group of Companies, and he has resigned as the chairman of the respective boards of directors, the entrepreneur's representatives said in a statement.

Frank has specifically sold a 70.1% stake in Russian Crab Group of Companies and a 70.09% stake in Russian Fishery Company LLC and has also sold a controlling stake in Rockwell Capital LLC.

Senior executives involved in asset management Yevgeny Orlov, Anton Chertkov, Alexander Sapozhnikov, Savely Karpukhin, and Stanislav Aksenov have purchased the respective stakes. The deals occurred on market terms.

Frank resigned as chairman of the board of directors of Russian Crab Group of Companies and RFC on March 17, 2022, the statement said. Orlov took his place in these posts.

"I have made the decision to sell a controlling stake in the assets to key managers who have helped me develop these assets over the past years. I am sure that they will cope with the task of maintaining operations stability, jobs, and ensure the fulfillment of obligations to buyers of products and creditors without my participation. I intend to focus on personal projects in the Russian Federation, which I will report later," Frank was quoted as saying in the statement.

The companies' priorities are currently to preserve jobs and ensure the stability of the fishery and an uninterrupted supply of food products, the statement said.

Frank has been added to the U.S. sanctions list, known as the Specially Designated Nationals and Blocked Persons List. He has been included on the list as an individual associated with Ksenia Frank, who is on the list, in turn, due to her affiliation with railway operator Transoil, which belongs to Gennady Timchenko.

The RFC is Russia's leading pollock producer, as well as the third largest pollock producer globally. It also catches herring, cod, haddock, threadfin hakeling, and crabs. Its main fishing grounds are located in the Bering Sea and the Sea of Okhotsk. Russian Crab is a leading producer of crab.

Frank's investment company Rockwell Capital also has projects in a number of other sectors, including wood processing.