Russia Seizes 654,829 Acres Of Farms Owned By Dutch Firm

Russia seized 654,829 acres of land owned by the Dutch agricultural holdings company AgroTerra Group on April 8, 2024, sending shock waves through the agricultural sector and raising fears over food security and international trade relations, according to Kevin Vandenboss's report for Benzinga.

AgroTerra, founded in 2008, is a major player in the agricultural industry, specializing in the production and supply of commodities such as soybeans, wheat, and sugar beet. I Photo: AgroTerra

President Vladimir Putin’s decree places Dutch-registered firms AgroTerra Investments B.V. and AgroTerra Holdings B.V. under the “temporary management” of Rosimushchestvo, Russia’s federal property management agency.

This action follows a series of similar asset seizures targeting Western companies, including multinational brewer Carlsberg and dairy giant Danone, which have sought to divest their Russian operations in response to the invasion of Ukraine.

This seizure is part of Russia’s targeting foreign-owned assets in retaliation for sanctions and other measures taken against Russian companies.

In April 2023, Putin signed an executive order allowing Russia to take over real estate, securities, property rights, and other assets from foreign companies with ties to “unfriendly countries.”

AgroTerra, founded in 2008, is a major player in the agricultural industry, specializing in the production and supply of commodities such as soybeans, wheat, and sugar beet.

The company is recognized as one of the top 20 largest owners of agricultural land in Russia, with a cultivated area of approximately 265,000 hectares (654,829 acres.) The decree’s impact on AgroTerra’s operations remains uncertain.

A spokesperson for the company stated, “As of now, the Company has not yet received any further details regarding the decree on the transfer of shares within the authorized capital of the AgroTerra Group to the temporary management of Rosimushchestvo.”