Russian Firms to be Fined Over Grupa Azoty Investments

Poland's financial supervision authority KNF has started administrative proceedings against companies affiliated with Russia's Acron in advance of levying fines for suspected improper transactions in shares of Grupa Azoty, Europe's second largest manufacturer of nitrogenous and multi-component fertilizers.

Companies that may be fined include Norica Holding, Vertco Ventures and Omana Holdings, in addition to Austria's Raiffeisen Centrobank.

In autumn 2013, Acron's satellites said they were intent on increasing their more than 15% stake in Grupa Azoty to 20% in order to appoint a member of the company's supervisory board.

The share purchases were routed through Luxembourg-based Norica, said to be ultimately controlled by Acron's owner Viatcheslav Kantor.

Subsequently, Poland's Treasury announced that it did not intend to sell any of its 33% stake in the company and regarded it as a strategic asset.

In 2012, Acron also attempted to take over Polish chemical producer Azoty Tarnow, a Grupa Azoty subsidiary.

In addition to fertilizers, the Polish company also produces alcohols,   plasticizers and pigments.