Russia has seized land and assets of an agricultural society. Is called AgroTerra and its fault would be that of being linked to a country “hostile” to Moscow.
The communication of the seizure of the land came directly from AgroTerra, which explained that at the moment the company has not yet received details regarding the transfer decree of the shares of the authorized capital of the group to the temporary management of Rosimushchestvo.
In fact, the company confirms that it has not changed its operations, that it is acting as usual and that it is very focused on the current sowing objective in progress. Explanations are awaited, while Carlsberg and Danone, which in the past had attempted to leave the country, also come under observation.
The Russian decree for the seizure of land and assets
Last Monday Vladimir Putin signed a decree imposing the temporary management of some assets and agricultural land. Several companies were involved: AgroTerra Investments BV And AgroTerra Holdings BV registered in the Netherlands e Carlsberg (multinational beer company) e Danone (dairy giant) who sought to divest their Russian operations in response to the ongoing conflict in Ukraine.
Moscow’s decision was not clarified to the companies, but several commentators such as those of Dive Agriculture They noted that Russia has long been trying to make it harder for companies to downsize or leave the country. In the’April 2023for example, the executive order was signed allowing the takeover of real estate, securities, ownership rights and other assets from foreign companies that have ties to countries considered “hostile.”
They fall under this definition AgroTerrawhich goes into temporary management in Rosimushchestvo, Carlsberg And Danone. The latter received approval in March to move its operations to Russia after starting the process in 2022, at a loss of 1.2 billion euros, or about $1.3 billion. This is not an isolated fact, for many companies leaving Russia has resulted in huge losses.
What is AgroTerra and what does it do?
From the group’s website AgroTerra you can read the story, told by themselves, of the company. AgroTerra, he writes, has a mission: to invest its energy and knowledge in the growth of the group of companies that compose it. The goal, he continues, is to cultivate the land by applying sustainable agriculture principles.
The group includes a series of agricultural companies which, in total, cultivates more than 200 thousand hectares located in Kursk, Lipetsk, Penza, Ryazan, Tambov and Tula. According to BEFL AgroTerra is among the top 20 largest owners of agricultural land in Russia.
AgroTerra therefore operates in Russia, but has companies registered in the Netherlands. It is these (AgroTerra Investments BV and AgroTerra Holdings BV) that have been subjected to temporary seizure.
The consequences of the Russian decision could go beyond the country’s borders. There are those who imagine one threat to the agricultural supply chain global and who a deliberate exacerbation of tensions between Russia and Western countries to also destabilize international relations.
