Makfa Co-Owner Valery Yurevich Dies at 85

The agricultural sector in Russia is mourning the passing of Valery Yurevich, a former co-owner of the prominent agro-industrial group Makfa. Mr. Yurevich died at the age of 85, according to reports from sources close to his family and confirmed by business news outlets.

Mr. Yurevich's career was largely rooted in the construction industry before his significant involvement with Makfa. His entry into the agribusiness realm was facilitated by his son, Mikhail Yurevich, who served as the Governor of the Chelyabinsk Oblast. In the 1990s, Mikhail Yurevich acquired stakes in key food production facilities, including the Chelyabinsk Pasta Factory and the Sosnovsky Grain Processing Plant, which were consolidated into the Makfa agroholding in 2001.

Following Mikhail Yurevich's election to the State Duma in 2003, ownership of the burgeoning business transitioned to his parents. At that time, Valery Yurevich held a substantial 71.42% stake in the company, with his wife, Natalia, owning 19.29%. This period marked a significant phase in the company's development, positioning it as a major player in Russia's food manufacturing industry, which has seen consistent growth driven by domestic demand and import substitution policies.

In 2017, Valery Yurevich divested his ownership interest, transferring his shares to the Cyprus-based entity Rantip Invest Limited. This move preceded significant legal developments concerning the company. Earlier in May 2024, a court ordered the seizure of Makfa and its associated assets, placing them under state control following a lawsuit filed by the Prosecutor General's Office.

The legal action by the Prosecutor General's Office alleged that Mikhail Yurevich and his business associate, Vadim Belousov, continued to exert control over the business operations while holding public office. This case has become a notable example within a broader trend of asset nationalization observed in Russia, particularly in recent years. The agricultural and food processing sectors in Russia represent a substantial portion of the national economy, with the market valued in the tens of billions of dollars and showing resilience even amidst geopolitical shifts.

The legacy of Valery Yurevich is intertwined with the growth of one of Russia's largest food producers. The recent state intervention in Makfa's ownership structure underscores the complex interplay between private enterprise and state interests within the Russian economic framework, a dynamic that continues to shape investment and operational strategies across various industries.