Russia’s second-largest bank VTB plans to create a massive agricultural holding from nationalized assets it acquired in the country’s southern regions in December 2024. The surprise move was announced by VTB CEO Andrei Kostin to Reuters.
The new holding will focus on domestic processing of grain and other agricultural products. Kostin said the goal is to develop high-value-added products.
“Ultimately, we need to develop high-value-added products, not only processing oil, but also grain,” Kostin said.
He also suggested the company could be sold at a later stage.
Nationalized assets – the core of the holding
The agricultural assets that now form the core of the new holding were nationalized in 2023. They were seized after their former owner, Andrey Korovayko, and his business partner Arkady Chebanov were charged with corruption and an arrest warrant was issued against them. Both currently live outside of Russia.
The assets are consolidated into a company called Agrokompleks Labinsky.
Key facts about Agrokompleks Labinsky:
• It owns 240,000 hectares of land.
• It produces grain, milk, sugar and other agricultural products.
• It exports up to 400,000 metric tons of grain and oilseeds annually.
With this move, VTB – traditionally a key player in the financial sector, is entering deeply into agribusiness, demonstrating a strategic reorientation towards sectors with high added value potential.
We acknowledge The European Times for the information.
