Russia seizes more than 650,000 acres of farmland and other assets from company with ties to ‘hostile’ country
In a significant escalation of its retaliatory measures against “hostile” states amid heightened geopolitical tensions, Russia has seized the assets of agricultural company AgroTerra Group. This decision, announced on April 8, 2024, caused shock waves in the agricultural sector and raised concerns about food security and international trade relations.
President Vladimir Putin’s decree places Dutch companies AgroTerra Investments BV and AgroTerra Holdings BV under the “temporary management” of Rosimushchestvo, Russia’s federal real estate management agency. The action follows a series of similar asset seizures targeting 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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AgroTerra, founded in 2008, is a major player in the agricultural sector, specializing in the production and supply of raw materials such as soya, wheat and sugar beet. The company is recognized as one of the 20 largest owners of agricultural land in Russia, with a cultivated area of approximately 265,000 hectares (654,829 acres).
The impact of the decree on AgroTerra’s operations remains uncertain. A spokesperson for the company said: “At the moment, the company has not yet received additional details regarding the decree on the transfer of shares in the authorized capital of the AgroTerra group to the temporary management of Rosimushchestvo. » Despite the lack of clarity, the company assured that it was continuing its operations as usual, focusing mainly on the current sowing campaign.
The seizure is part of a broader trend by Russia to target foreign assets in retaliation for sanctions and other measures taken against Russian companies abroad. In April 2023, Putin signed a decree allowing Russia to take over real estate, titles, property rights and other assets from foreign companies with ties to “hostile countries.”
The implications of these actions extend beyond the companies involved and their shareholders. They pose a threat to the global agricultural supply chain, potentially disrupting food production and exports. Furthermore, the move could exacerbate tensions between Russia and Western countries, further complicating efforts to resolve the conflict in Ukraine and stabilize international relations.
As the situation develops, the agricultural industry and global markets will closely monitor the repercussions of Russia’s asset seizures and their impact on food security, trade and diplomatic relations.
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