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Akhmetov’s SCM, Smart Holding Create Ukraine Agricultural Group

System Capital Management Group, owned by Ukraine’s richest man, Rinat Akhmetov, and LLC Smart Holding, owned by Ukrainian businessman Vadim Novinsky, formed an agricultural company called HarvEast.

HarvEast will manage 200,000 hectares of agricultural lands, cattle and pig farms, combine feed production and other agricultural assets, System Capital Management, also known as SCM, said in a statement on its Website today.

“The decision to invest in agriculture corresponds with SCM’s development strategy,” said SCM Chief Executive Officer Oleh Popov in the statement. One of SCM’s strategic goals is “diversification and increasing the shasre of non-industrial businesses.”

The group took over the agriculture assets of the Mariupolsky Metallurgical Plant of Ilyich, which belongs to Metinvest Holding LLC. Metinvest is 75 percent-owned by SCM and 25 percent by Smart Holding.

After the formation of the holding is completed next year, it will operate in Donetsk, Zaporizhzhya, Cherkasy, Zhytomyr regions and in the Crimean peninsula, according to the Website.

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