VTB's Strategic Move: Creating a Major Agricultural Holding Company

Russia's VTB plans to establish a substantial agricultural holding from nationalized assets acquired in 2024. The focus will be on domestic grain processing, with potential future sale. The assets were taken after corruption charges against its former owner, Andrei Korovaiko.

Russia's second-largest bank, VTB, is set to launch a substantial agricultural holding using nationalized assets from the country's southern regions, acquired in December 2024. This strategic move aims to enhance the domestic processing of agricultural products, as confirmed by VTB CEO Andrei Kostin.

The envisioned holding concentrates on boosting the local processing of grains alongside other agricultural commodities. Kostin hinted at the possibility of a future sale, emphasizing the development of high value-added products including grains.

The assets in question were nationalized following the issuance of an arrest warrant for former owner Andrei Korovaiko and his associate Arkady Chebanov, who face corruption accusations. Currently consolidated into Agrocomplex Labinski, the company manages 240,000 hectares of agricultural land and exports significant quantities of grains and oilseeds.

(With inputs from agencies.)