Press-release

On July 4, The Federal Service for Supervision of Consumer Rights Protection and Human Well-being of the Russian Federation (Rospotrebnadzor) has suspended the imports to Russia of milk and dairy production produced by 7 Ukrainian subsidiaries of Milkiland‑Ukraine.

“These restrictions do not address specific products but a group of seven production facilities, four of which have not supplied anything to the Russian Federation for over five last years. This fact suggests that it has nothing to do with the quality of our products.

“Previously, Rospotrebnadzor decided to suspend the import of dairy products by two Milkiland-Ukraine subsidiaries. We repeatedly appealed to the Federal Service to establish a constructive dialogue, to examine the problems and to develop an action plan to address them. Unfortunately, Rospotrebnadzor has ignored our appeals and we have received no reply to our requests.

“Supplying Ukrainian dairy to Russia for ten years, the Group’s plants always fulfills all the requirements and regulations of the Russian Federation and the Customs Union. This was many times confirmed, including by independent laboratories and Rospotrebnadzor and Rosselkhoznadzor inspections.

“We are deeply sorry that our Russian customers and consumers will suffer due to these allegations.

We would like to inform our shareholders and lenders that despite of some problems which this decision of Rospotrebnadzor brought to us, the diversification of our business will support our ability to meet all of our obligations” – commented Milkiland N.V. CEO Anatoly Yurkevych.