Russia seizes stake in farming giant in new high-profile asset grab
Russian Court Orders Transfer of Rusagro Stake Amid Asset Seizure Wave
Background and Legal Proceedings
MOSCOW, May 5 (Reuters) - A Russian court ruled on Tuesday that Vadim Moshkovich, the billionaire founder of the exchange-listed agriculture firm Rusagro, must transfer a stake to the state.
Moshkovich, Russia's 51st-richest person according to the latest Forbes list of billionaires, was arrested in March 2025 and has been charged with embezzling 30 billion roubles ($400 million). He has pleaded not guilty.
Details of the Seized Stake
The ruling concerned the stake owned by Moshkovich himself as well as stakes owned by his wife, other relatives and a former CEO of the company, Maxim Basov, for a combined 68% share in the company valued at 67 billion roubles ($886 million).
Anti-Corruption Law Violations
The court said in a statement that Moshkovich violated anti-corruption laws during his tenure as a member of the Federation Council, the upper house of parliament, from the Belgorod region, bordering Ukraine, where Rusagro now runs several pig farms.
Context: Russia’s Asset Seizure Campaign
Scale and Impact of Seizures
The transfer is one of the highest-profile asset seizures by the state since the start of the war in Ukraine in 2022, when the state embarked on a drive for the biggest redistribution of property in Russia since privatizations in the 1990s.
According to a 2025 estimate by Moscow law firm NSP, the Russian state has seized more than $50 billion worth of private property, including the assets of foreign companies that left Russia.
Legal and Regulatory Justifications
FOLLOWING UGC SCENARIO
Most seizures from Russian owners followed charges of corruption or illegal privatisation against owners as well as charges of violating a law that bans ownership of strategic assets by foreign entities such as offshore-registered firms.
Rusagro’s Response and Future Outlook
Company Statement
Rusagro, Russia's only major listed agriculture firm and a big producer of sugar, pork and oil and fat products, said earlier on Tuesday that it was operating normally despite the court hearing.
"We continue to conduct our operations in full compliance with the law," the company said.
State Plans for Seized Assets
Upcoming Auctions and Market Implications
The state has promised that it will sell the assets it seized to new owners. The government plans to hold an auction to sell the seized stake in gold producer UGC in May. Analysts said Rusagro was likely to follow this scenario.
"The state has taken control of a controlling stake in all of Rusagro, raising hopes it may eventually seek a buyer for the whole company, as in the case of UGC. But quick resolution looks unlikely," Vector Capital investment firm analysts said.
Additional Information
($1 = 75.6455 roubles)
(Reporting by Reuters in Moscow; Writing by Gleb Bryanski; Editing by Kevin Liffey and Gareth Jones )
