Bloomberg learned about the departure of the third major grain trader from Russia

Following Viterra and Cargill, the American trader Archer Daniels Midland Company is also considering leaving the Russian market, sources told BLOOMBERG. The agency attributes this to pressure from US authorities.

One of the largest international agro-industrial companies Archer Daniels Midland Company (ADM) is considering leaving the Russian market after the American Viterra and Cargill, Bloomberg reports citing several sources.

According to the agency, the departure of international grain traders from RUSSIA was influenced by the US authorities, who demanded that corporations stop any activity with Moscow. At the same time, Bloomberg notes that after the departure of Western companies, Russia's control over global food supplies will increase, and Moscow's income will increase significantly.

State-funded [Russian] traders have already captured most of the market when President Vladimir Putin made food sovereignty a policy priority and grain exports became a symbol of his geopolitical power.

According to the forecast of the US Department of Agriculture, cited by Bloomberg, Russia will sell about 43.5 million tons of grain in the 2022-2023 season, which will be a record figure for its closest competitors. Thus, the entire European Union will sell only 37 million tons of grain, the usa - 21.1 million tons, and Ukraine - 13.5 million tons.

ADM is an international agro-industrial corporation, one of the world's largest suppliers of food and agricultural products, the largest corn processor, and also produces food ingredients, animal feed, products for industrial and energy purposes. The company has 500 procurement centers, 270 food ingredients production facilities, 44 innovation centers and the largest logistics network.

In 2018, ADM and Aston Foods and Food Ingredients (part of the Aston group of businessman Vadim Vikulov) signed an agreement on a joint venture for the production of starches and syrups in the Ryazan and Vladimir regions.

At the end of March, trader Viterra, which accounted for up to 7.9% of total exports, officially announced the termination of EXPORT activities in Russia from July 1. Nikolay Demyanov, Managing DIRECTOR of Viterra Rus, specified to RBC that the trader is negotiating the sale of his infrastructure assets in the country. “Management plans to continue grain export activities as a new independent Russian exporter in order to maintain the competitiveness of Russian grain in the world market and create the most favorable conditions for Russian producers,” he explained.

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Prior to this, RBC sources reported that the Russian "daughter" of the American Cargill will stop exporting from Russia in the next agricultural year. Both companies were among the six largest traders of Russian grain in the first half of this agricultural season, Bloomberg noted.

Last December, the heads of three Russian grain regions—Veniamin Kondratyev of the Krasnodar Territory, Vladimir Vladimirov of the Stavropol Territory, and Vasily Golubev of the Rostov Region—sent a letter to Putin with a proposal to limit the participation of foreign companies in the export of Russian grain, which export it through the “shadow links of the chain.” Such mechanisms lead to lower export prices, financial losses for producers and the budget, said a RBC source familiar with the contents of the letter.