The war between Russia and Ukraine could also take a toll on the food company Kopix Group Network-controlled Rami Levi . Kopix reports that owner loans granted by Urban Kopix, a subsidiary that operates its cafes, to a registered company in Cyprus (Kopix Global) that concentrates its operations in Russia, in the amount of about $ 2.5 million, are in jeopardy. Urban Kopix holds about 42% of the shares of the Cypriot company.
Kopix notes that since the owner’s loans were made in dollars and determined to repay in dollars and in light of the fact that most of the Cypriot company’s revenues come from a Russian company operating in Russia whose revenues are in rubles, and because the Russian currency has crashed 66% against the dollar since early 2022, “Global will repay some of the owner’s loans that have been made on the set dates.”
It also states that “even before the war between Russia and Ukraine began and as part of the company’s assessments to emerge from the corona crisis, Urban Kopix and Kopix Global discussed postponing the repayment date of one of the owners’ loans set for the end of 2022 to a later date and payment of interest accrued on owner loans. For dates to be agreed … The company is examining the issue of the extent of the impairment of the owner’s loans and has given the external economic evaluator the examination of the matter. “
Cyprus may be defined as “unfriendly” to Russia
In addition, Kopix notes, in recent days the Russian government has announced the imposition of economic sanctions on Russian companies that have foreign shareholders from “unfriendly” countries as defined by the Russian government, in such a way that they will demand repayment of credit provided to them by Russian banks. .
The company also notes that since Kopix Global is a Cypriot company and Cyprus may be defined as an “unfriendly” country to Russia, the Russian company may be required by the Russian banks that provided it with funding to repay it. According to information provided to Kopix, “the Russian company has bank credit that currently amounts to a total of about 100 million rubles, which is about 806 thousand dollars.”
Kopix Global, according to the report, “is considering transferring its holdings in the Russian company to a” friendly country “as defined in an order issued by the Russian government.”
Started operating in Russia in 2016
In any case, Kopix emphasizes that “international activity in the field of cafes is not material to the company and the company does not expect that the war between Russia and Ukraine and its consequences (including the various sanctions) will have a material impact on the company and / or its results.”
Kopix Group, which operates a chain of cafes and supermarkets, is controlled by the Rami Levy chain (60%) and is traded at a value of about NIS 200 million after a jump of more than 200% in the last year and a half. Kopix began operating in Russia during 2016 for the purpose of establishing a chain of cafes under the COFIX brand for the sale of coffee, beverages, pastries, sandwiches and more at a uniform price per product. As of the end of September last year, Urban Kopix had 234 active branches of cafes outside Israel, of which 207 operated in Russia.