In a view of Free Trade Zone agreement between Ukraine and EU coming into the force on January, 1, 2016, Directorate Generale SANCO of European Commission published a list of Ukrainian dairy facilities that have passed relevant audits and were cleared to export to EU starting from 10 January 2016. Three production facilities controlled by two subsidiaries of Milkiland Group, namely, Romny dairy combine and Mena cheese plant, were included into this list.
On August 17, 2015, Milkiland N.V. entered into the Professional Services Agreement with “Deloitte & Touche” Ltd., a member firm of Deloitte Touche Tohmatsu Limited. The Agreement envisages the provision by “Deloitte & Touche” Ltd. of Company’s Business Review and review of short-term liquidity forecast.
Further deterioration of macroeconomic situation in the Group’s key markets of Ukraine and Russia largely affected Milkiland’s operations in H1 2015. The access to the Group’s main export market of Russia remained limited, since restrictions against Ukrainian dairy export, as well as food export from the EU, were not lifted by Russian authorities due to continuing tensions between Russia, Ukraine and the EU.
On February 20, 2015, 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 cheese products and imitation cheese produced in Poland, including imitation cheese under Jolly Cow brand by Milkiland’s Polish subsidiary Ostrowia.