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Russia receives at least $1 bn in profits from grain stolen in occupied Ukraine

A complex network of international actors is profiting from Russia’s theft of Ukrainian grain, undermining efforts to isolate Moscow economically.

byMaria Tril

16/09/2024

2 minute read

grain initiative shutdown risk russia blocks bosporus ship inspections

Grain Initiative is at risk of shutdown, an illustrataive image/ Source: varta1.com.ua

Russia receives at least $1 bn in profits from grain stolen in occupied Ukraine

Russia profited at least $1 billion from selling grain stolen from occupied Ukrainian territories, according to a report by The Wall Street Journal.

This scheme of selling Ukrainian grain involves a complex network of actors benefiting from Moscow’s wartime patronage system, WSJ reported.

Ukraine is one of the world’s largest grain exporters, particularly wheat and corn. Since Russia’s invasion in 2022, grain exports from Ukraine have been significantly disrupted, causing concerns about global food security. The theft and illegal sale of grain from Russian-occupied Ukrainian territories has further complicated the situation, with reports indicating Russia has profited substantially from this illicit trade.

Since 2022, Russian forces have occupied some of Europe’s most fertile farmland in Ukraine, seizing harvests or buying them at artificially low prices. “It’s like the war is feeding itself,” said Pascal Turlan, legal director at Project Expedite Justice, which is assisting Ukrainian prosecutors in investigating grain theft.

The operation’s scale is significant. Markiyan Dmytrasevych, Ukraine’s deputy agriculture minister, said, “Since 2022, the operation has directly shipped at least 4 million tons of grain and other produce from occupied Ukraine to international markets, generating revenue of $800 million.”

However, the total value could be much higher, with Ukrainian nonprofit organization Texty estimating it could reach $6.4 billion.

The stolen grain trade involves various entities, including a Russian shipyard equipping the invasion, a company affiliated with Iran’s Revolutionary Guard, and businesses trading through the United Arab Emirates and Syria. This network helps keep Russia’s allies funded and loyal despite mounting economic pressure on Moscow.

Ukraine is working to halt these shipments through diplomatic pressure. Heorhiy Tykhyi, a Foreign Ministry spokesman, reported some success, with countries like Egypt, Israel, and Lebanon canceling or stopping grain purchases after being informed of their origins in occupied territories.

However, Russian allies like Iran and Syria continue to accept these shipments. Iran reportedly buys barley from Crimea at a 34% discount from market prices, according to Kateryna Yaresko, an analyst at SeaKrime.

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