A Russian court has seized the property of the grains trading house Rodnie Polya, including a key loading terminal in the Black Sea region, as part of significant changes in the trading sector of the world’s largest wheat exporter.
Key Details:
Company Background:
Formerly known as TD RIF, Rodnie Polya was once among Russia’s leading trading houses.
The company has faced difficulties since mid-March in obtaining phytosanitary certificates, crucial for grain exports, and was stripped of its export quota in May.
Operational Halt:
In April, Rodnie Polya ceased operations at its Azov river terminal, which has the capacity to handle approximately 4 million metric tons of grain annually.
This terminal was ranked as the sixth largest in the Black Sea region for the 2023/24 exporting season.
Legal Issues:
The court’s decision to seize the property was based on allegations that the company’s owner, Pyotr Khodykin, who holds a passport from Saint Kitts and Nevis, unlawfully controlled the port, deemed a strategically important enterprise.
Russian law prohibits foreigners from holding stakes in such critical enterprises.
Impact on the Industry:
The downfall of Rodnie Polya has altered the landscape of Russia’s grain trading industry, allowing other traders, such as Grain Gates, to capture Rodnie Polya’s market share.
Despite these challenges, Russia has continued to export grain at a near-record pace in the second half of 2024.
Recent Developments:
On Thursday, Russia’s second-largest lender, VTB, announced the acquisition of an agricultural company in southern Russia that had been nationalized after its former owners were accused of corruption and subsequently fled the country.