In a significant escalation of its retaliatory measures against “unfriendly” states amid rising geopolitical tensions, Russia has seized assets of agricultural holding company AgroTerra Group. The move, announced on April 8, 2024, has sent shockwaves across the agricultural sector and raised concerns about food security and international trade relations.
President Vladimir Putin’s decree places Dutch-registered companies AgroTerra Investments BV and AgroTerra Holdings BV under the “temporary administration” of Rosimushchestvo, Russia’s federal real estate management agency. This action follows a series of similar asset seizures against Western companies, including multinational brewer Carlsberg and dairy giant Danone, which have sought to divest their Russian operations in response to the ongoing conflict in Ukraine.
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Founded in 2008, AgroTerra is a major player in the agricultural industry, specializing in the production and supply of raw materials such as soybeans, wheat and sugar beets. With a cultivated area of approximately 265,000 hectares (654,829 acres), the company is considered one of the 20 largest agricultural landowners in Russia.
The impact of the decree on AgroTerra’s operations remains uncertain. A spokesperson for the company stated: “So far, the company has not received any further details regarding the decision to transfer shares within the authorized capital of the AgroTerra Group to the temporary management of Rosimushchestvo.” Despite the ambiguity, the company has assured that it continues its operations as usual and focuses primarily on the ongoing sowing campaign.
This seizure is part of a broader trend in which Russia is targeting foreign assets in retaliation for sanctions and other actions against Russian companies abroad. In April 2023, Putin signed an executive order allowing Russia to take over real estate, securities, property rights and other assets from foreign companies with ties to “unfriendly countries.”
The impact of these measures goes beyond the companies affected and their shareholders. They pose a threat to the global agricultural supply chain and can potentially impact food production and exports. In addition, the move could increase tensions between Russia and Western countries and further complicate efforts to resolve the conflict in Ukraine and stabilize international relations.
As the situation evolves, the agricultural industry and global markets will closely monitor the impact of the seizures of Russian assets and their impact on food security, trade and diplomatic relations.
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This article, “Russia Seizes Over 650,000 Hectares of Farmland and Other Assets from Company With Ties to ‘Unfriendly’ Country” originally appeared on Benzinga.com
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