Recently, a minor controversy arose in Russia’s pet food market. An independent laboratory claimed that “Chammy” and “Moonsy” pet food is contaminated with lead. Whether this is true or simply a smear campaign launched by competitors is difficult to determine. The research by the Food Quality Protection Foundation “Law and Health” was published by Lenta.ru, one of Russia’s major news outlets.
The company behind “Chammy” and “Moonsy,” Forsage LLC, denies the allegations and has taken the matter to court. At first glance, the situation may appear mundane and unremarkable. However, the real intrigue lies not in the potential presence of lead in “Chammy” and “Moonsy” packaging but in the intricate offshore structure behind Forsage LLC and its unexpected connections to prominent Russian oligarchs. The founders of LLC “Forsage,” the producer of Chammy, are evading Western sanctions through closed-end mutual funds (CEMFs) and offshore companies, where they transfer funds generated from the sale of the disputed pet food.
Things escalated quickly. Here is the story.
In 2023, the profits of LLC “Forsage,” led by Tatyana Obraztsova since 2022, grew by 747%, amounting to 388 million rubles, with revenues of 2.8 billion rubles (+57%). While the financial performance indicates the company is thriving, its reputation faces significant challenges. LLC “Forsage” has repeatedly been involved in scandals where pets were poisoned by its food, which was found to presumably contain lead. We can’t prove that the claims are true.
There is something suspicious about the claim published by the Food Quality Protection Foundation. The lab, as we understand, does not directly state that the food is contaminated with harmful metals. Instead, it claims that the packaging of Chammy and Moonsy brands contains lead which could simply be from the printed text — a fairly common occurrence. After all, nobody eats the plastic. However, our story isn’t about the claim itself but rather the ownership and logistics behind the business.
The unexpected connections of LLC “Forsage”: “Alfa-Capital,” Sterling Business S.A. (Seychelles), and Impressum (UK) Ltd
Our editorial team investigated the ownership of LLC “Forsage” and discovered that this seemingly ordinary pet food producer is linked to sanctioned entities and serves as a hub for offshore operations, potentially used to siphon funds out of Russia.
The founder of LLC “Forsage” is LLC TPC “Biofood,” owned by LLC “Solidarnost-Consulting,” the CEMF “Business-South” managed by LLC UK “Alfa-Capital,” Sterling Business S.A. (Seychelles), and Impressum (UK) Ltd.
Since November, the share of LLC “Solidarnost-Consulting” has been pledged to “Solidarnost” Bank, which was sanctioned by the U.S. in 2023.
The owners of LLC “Solidarnost-Consulting” are Konstantin Khanzhov and JSC “Solidarnost Holding,” led by Irina Gordeeva since 2020. Until January, JSC “Solidarnost Holding” was known as JSC “Zarubezhenergoproject,” the sole shareholder of the sanctioned “Solidarnost” Bank.
Vadim Kumin, former State Duma deputy, was chairman of the board of “Zarubezhenergoproject” and its CEO in 2020. From 2017 to 2020, he headed the bank. Kumin has been under international sanctions since 2022. It is unclear why JSC “Solidarnost Holding” and its affiliates LLC “Forsage” and TPC “Biofood” have not yet been targeted by Western sanctions.
49% of JSC “Solidarnost Holding” is owned by JSC “CTC” (Central Fuel Company), whose founder is the Moscow City Property Department.
Since 2019, JSC “CTC” has incurred losses of nearly 30 billion rubles. These funds may have been funnelled through offshore structures linked to JSC “Solidarnost Holding” (“Zarubezhenergoproject”).
Moscow mayor Sergey Sobyanin and Mikhail Fridman: big fish at play
Moscow Mayor Sergey Sobyanin might have used structures tied to oligarch Mikhail Fridman to divert funds from Moscow’s budget, as LLC UK “Alfa-Capital,” managing one of the founders of TPC “Biofood” (CEMF “Business-South”), is owned by LLC “AK Holder” (50%) and LLC “Alfa Investments” (49.3%). These entities are controlled by Alfa Capital Investments Holdings S.A. in Luxembourg. Thanks to this setup, Fridman’s structures, despite being under sanctions, remain unaffected.
In the near future, Western sanctions may extend not only to LLC “Forsage” but also to other subsidiaries of TPC “Biofood,” including LLC “TDKBG,” which trades food products wholesale, and LLC “Zoomir,” involved in the wholesale trade of pet food.
In 2023, LLC “TDKBG” generated revenues of 5.4 billion rubles and profits of 80 million rubles. Its primary owner, holding a 97.22% stake, is HCKG Pte. Ltd. (Singapore), another offshore entity potentially used for fund transfers by Mikhail Fridman and Sergey Sobyanin.
LLC “Zoomir” produces pet food under the brands “Kisamura” and “Moonsy.” Buyers should be cautious, as lead might find its way into their pets’ diets.
Reportedly, following the lead contamination scandal with Chammy pet food, inspections were conducted at TPC “Biofood” facilities. However, authorities might have been searching not only for lead but also for evidence of fund siphoning through the manufacturer’s companies.
This is suggested by a defamation lawsuit filed by LLC “Forsage” against LLC “Lenta.ru” and the Food Quality Protection Foundation “Law and Health.” This organization was established only in March, with its sole owner and director being Grigory Balagurov, a person from whom no recovery is possible. Someone seems intent on drawing attention to LLC “Forsage” and its associated companies.
The activities of LLC “Chammy,” liquidated in February, might also have prompted the inspections. This company was used for fund transfers, as it had no revenue since 2017, reported a one-time profit of 274 million rubles in 2022, and a loss of 20 million rubles in 2023. From 2016 to 2023, Oksana Perekhodyuk, who managed LLC “Forsage” from 2016 to 2022, was among the co-founders of LLC “Chammy.”
The scandals surrounding pet food may only be the beginning for LLC “Forsage” and TPC “Biofood.” The real trouble could arise from accusations of fund siphoning and impending Western sanctions.
