Russian director resigns from Buhler Industries after statements supporting invasion of Ukraine
CBC
Konstantin Babkin has resigned as a director of Winnipeg-based farm machinery manufacturer Buhler Industries after making at least two public statements in support of Russia's invasion of Ukraine
The latest statement came on Sunday when Babkin blamed the Russian attack on U.S. interference and said "it is necessary to stop the conflict, to build a unified economic space with Russia," in a Russian language interview on CGTN, a Chinese state-owned broadcaster.
This came a few days after Babkin, who also leads Russia's Action Party, tweeted out his party's support of Russian President Vladimir Putin's "decision to recognize the Donetsk and Luhansk People's Republics" — two separatist-controlled areas that are recognized by the international community as Ukrainian territory — which was a precursor to the conflict.
Buhler initially disavowed Babkin's statements on Tuesday saying "Buhler Industries is united in strong opposition to the comments made by Konstantin Babkin," according to an email by Buhler spokesperson and vice-president Adam Reid, who will now take on Babkin's director role.
On Wednesday, the company put out a press release announcing Babkin's departure from Buhler's board.
"Babkin has been a vocal supporter of the actions taken by the Russian Federation," wrote Reid.
Reid said Babkin's views are "in stark contrast to those of the North American executive team and do not reflect the position or values of Buhler Industries."
The board's chair, Dmitry Udras, has been replaced by Canadian Grant Adolph, but Udras remains on the board as a director. CEO Yury Ryazanov keeps his position.
Both men, who are Russian nationals, are on the federal council of the Babkin-led Action Party, according to the party's website.
Another Russian, Oleg Gorbunov, also remains on Buhler's seven-person board.
Babkin, Udras and Ryazanov are the co-owners of Novoe Sodrugestvo CJSC, a Russian conglomerate that owns 20 companies including Buhler, Russian tractor maker Rostselmash and Selmashbank, a financial institution based in Rostov-on-Don in southern Russia, according to its website.
The trio have been on the board of Buhler Industries since a subsidiary of their Russia-based conglomerate, Combine Factory Rostselmash Ltd., purchased the majority stake in Buhler in 2007.
Rostselmash upped its ownership in Buhler from 80 per cent to 97 per cent in late December with a $12-million share purchase from past chairman and CEO John Buhler's holding company.
"Buhler Industries is 97 per cent owned by Russians but has roots in Canada going back to 1932 so we do not consider ourselves to be a Russian company," Reid wrote in an email.