Allegations surface that the proprietor of Riga's Ferris wheel is included on Ukraine's sanctions list
In the heart of Riga, the capital city of Latvia, the construction of the Panorama Wheel is nearing completion, with only safety checks remaining. But the project, which was originally founded by Dimitrij Uspensky, has seen a significant change in ownership.
Dmitrijs Gilfanov, a businessman with a diverse portfolio, took over RPR Operator, the company responsible for the project, in March 2022. Gilfanov, who now resides permanently in Latvia since April 2022, is also the owner of Besterry Management Ltd, a Cyprus-registered company, according to company registry data. He became the owner of the firm in November 2021.
Gilfanov's involvement in the project has raised questions about the origin of the funds used for its development. The Riga City Council has admitted that they have no way of assessing the source of the project's funding. Uspenskis, co-owner of the developer of the Panorama Wheel project, has, however, asserted that the investments made in the Pardaugava Ferris Wheel project have no Russian connection. He stated that the funding was raised as a loan from European companies.
The claims of European funding are further supported by the pledges registered for the shares of the two owners of RPR Operator, Racoonstruction Holding Limited and Panoramica. On May 28, RPR Operator pledged all its assets, followed by pledges registered on June 18 and July 11 for the same amount - EUR 4.7 million. The three pledges were registered in favour of Besterry Management Ltd, a company registered in Cyprus.
However, the company that authorized Gilfanov in the summer of this year to exercise these commercial mortgages on RPR Operator remains unclear. Besterry Management Ltd may have lent money for the Ferris wheel project and secured the three commercial mortgages to make a claim against any of the three mortgagors.
The total cost of the project exceeds €10 million, with €3 million spent on landscaping the park. The most expensive part was the Ferris wheel itself and its equipment, much of which was built in Latvia.
Despite the significant investment, the financial health of RPR Operator is a concern. By the beginning of 2023, the company had accumulated losses of around €300 000. The 2023 annual report shows that RPR Operator had a balance sheet of €2.6 million, including €2.3 million in long-term debts to related companies.
The State Security Service has confirmed that Gilfanov is known to them. Gilfanov has listed two apartments in Jurmala and an apartment on Antonijas Street in Riga as his addresses in company documents. He also holds citizenship in the Caribbean island of St Kitts and Nevis.
The construction of the Ferris wheel was awarded to RPR Operator in autumn 2019, after the company was the only bidder in an auction organized by the Riga City Council. The contract stipulated that the construction had to be completed within three years, but the deadlines were extended due to the pandemic and the approval process by the construction board.
As the Panorama Wheel prepares to open its doors to the public, questions about the project's financing and Gilfanov's background continue to linger. The Latvian authorities and the public await more clarity on these matters.
