Olersky’s bulk carriers are taken over by a legal entity with zero balance

The shares of the shipping company with billion-dollar revenue, owned by Deputy Minister of Transport Viktor Olersky and his business partners, were transferred to a legal entity with zero balance.

According to Alexander Arbouzov, Partner and Head of Corporate Practice at Duvernoix Legal, the presence of such company in the capital of a large business is not unexpected and is widely used in practice.

"A legal entity (SPV or SPE) is established for the sole purpose of holding an asset, in this case a share in the business. This makes possible managing separate, unrelated projects more efficiently, sharing financial flows, and also reducing risks to some extent, without "attaching" all assets directly to one parent company. In addition, in the future it makes it easier to attract investors or sell a business. For example, you have a food production enterprise, as well as another one that creates components for the automotive industry. It is quite obvious that you would separate them," the expert says.

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