Amsterdam, the Netherlands, January 23, 2015, the FreezeOil Fund (“FreezeOil” or the “Fund”) – a Dutch investment foundation, today reports on the results of its activity in Ukraine.
As it was announced 3 month ago the Fund has invested in “BRSM-Nafta” group of companies (the “Ukrainian Chain” or “BRSM”) – one of the largest independent fueling station chains in Ukrainian downstream retail market.
When FreezeOil has entered BRSM it was a good reflection of the current situation in Ukraine. Certain illegal activities and fraud as well as corruption were surrounding business of the company and preventing it from normal civilized development. Therefore local activities started with meetings held between Prof. Roland Pieper and various legal enforcement agencies. Throughout these meetings it became clear that there are numerous destructing forces active in the country, that are trying to bring chaos in any aspect of its economic and civil life. However, government officials hold a firm ground against them. It became especially effective after formation of a new government by the end of December 2014. Certain people and resources were dedicated to normalization of situation and eradication of crime.
Today FreezeOil observe substantial improvement of business activities in Ukraine. BRSM group acquires new assets. It has launched 4 modern state-of-the art fueling complexes within the past 2 months. Spirit and loyalty of personnel has normalized. Employees received European partner with a great deal of enthusiasm, and investors in response will do utmost best to protect thousands people working for BRSM group in current difficult times. This shall set an example of social and legal responsibility for people.
There are still a lot of things that need to be done. Some recent terrorist activity and unsuccessful attacks demonstrate that certain destructive forces use unlawful competition practices and are not willing to give up lightly. FreezeOil monitors the situation and is ready to use the full power of international law. The Fund firmly believes in professionalism and strength of local law enforcement agencies and their ability to resolve any obstacles and protect lives and health of people as well as foreign investment in Ukraine.
FreezeOil does not stop in its efforts and strengthen relationship with the new government at all levels: legislative and executive. For the 10th of February 2015 there is a large meeting scheduled in Kiev with participation of several key Ukrainian officials,
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as well as a meeting with the Dutch Ambassador. During these meetings we plan to discuss ways of improving investment attractiveness of Ukraine. Prof.Pieper will share his experience in these matters and make a proper report over past 3-months activity during the press-conference.
Mr. Pieper commented: “Ukraine and its government demonstrate strong political will and capacity to overcome current chaotic situation. This gives us a firm justification and assuredness in building civilized business in local market. We believe that it has a bright future and all our initiatives will lead to mutual prosperity.”
FreezeOil will continue being active in Ukrainian market and will invest further in areas of information technologies, telecommunication and energy saving.
“BRSM-Nafta” – is a national chain of fueling stations established in accordance with highest standards of services and best consumer fuel offering. The Chain was founded in 1995. Within Ukrainian chain structure137 fueling stations (trademark “BRSM-Nafta”), 87 minimarkets, 3 oil storage facilities and 41 automotive pools operate.
The entire assortment of fuels complies with Ukrainian and European quality standards. The company works closely with the most advanced refineries in local (Kremenchug Refinery) and foreign (Mozyr Refinery) markets. There is a consistent quality control for products in place.
FreezeOil Foundation is a Dutch-based holding company established for the purpose of investments in the emerging Eastern European energy markets. Besides of other special purpose vehicles of Mr. Roland Pieper (advanced technologies, telecommunications) FreezeOil is organized for the Ukraine in particular. Mr. Roland Pieper is a well-known international entrepreneur, operating in the USA, CIS countries, China and Europe, who believes that success of investments is not granted by only being able to inject right amount of funding but also about the transfer of new knowledge and management skills. FreezeOil plans to attract world best class experts from leading companies like Shell and others alike to operate successfully in target markets of Eastern Europe. This will allow for a strong increase in efficiency of the management and services provided, thereby boosting profitability of operations and return on investments.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and these actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Ukraine, rapid technological and market change in our industries, as well as many other risks specifically related to BRSM-Nafta and its operations.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of FreezeOil or BRSM-Nafta or any of their respective subsidiaries or affiliated companies, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the shares or securities of FreezeOil or BRSM-Nafta or any of their respective subsidiaries and affiliated companies.