VTB's Ambitious Venture: From Nationalized Assets to Agro Powerhouse

Russian bank VTB plans to establish a major agricultural holding using nationalized assets. The initiative will focus on domestic grain processing, with intentions to sell the holding in the future. This move comes after the assets were seized amid corruption allegations against former owners, now living abroad.

Russia's second-largest bank, VTB, is poised to transform its nationalized assets in the southern regions into a substantial agricultural holding. This strategic move was confirmed by VTB CEO Andrei Kostin to Reuters, with plans to prioritize domestic grain processing and other agricultural products. Kostin also hinted at potential future sales of the holding.

This development follows the nationalization of assets in 2023 after an arrest warrant was issued for former owner Andrei Korovaiko and business associate Arkady Chebanov on corruption charges. Both individuals are currently residing abroad. VTB's involvement signifies a significant push towards high value-added agricultural products.

The consolidated company, Agrocomplex Labinski, now manages 240,000 hectares, producing various agricultural products including grains, milk, and sugar. It boasts an export capability of up to 400,000 metric tons of grains and oilseeds annually.

(With inputs from agencies.)