Companies growing grain earn biggest profits in occupied Kherson Oblast

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More than 3,000 companies located in the temporarily occupied part of Kherson Oblast have been registered in the Russian business register since 24 February 2022.

Source: a research by Vgoru, a media outlet in Kherson Oblast

Details: “Many of them operated under Ukrainian law before the full-scale invasion, but were either seized by the occupiers or had their owners voluntarily decide to work under Russian law and continue business under the new conditions,” Vgoru says.

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Last year, some companies on the occupied left bank of the oblast earned hundreds of millions of roubles. Over a hundred companies reported net profits in the tens of millions. Taxes paid by these companies are funnelled into the Russian budget and finance Russia’s war against Ukraine, the outlet notes.

The most profitable companies on the left bank of Kherson Oblast in 2024 were mostly engaged in grain cultivation, which Russian registries list as the main activity for the majority of companies in the region.

Among the companies involved in grain production are Servis Miaso, Yug-Opt, Farm Plus and Kherson Stroi Spets Snab. The top earner is the “state” Kherson Grain Company, created by the occupation authorities, which organises grain shipments for export. It earned RUB 224 million (about US$2.7 million) in 2024.

“Businesses with multi-million revenues belong to collaborators, their relatives, and affiliated businesspeople. They profit from seized Ukrainian property and the trade in Kherson’s grain,” the outlet notes.

The research shows that companies are able to earn millions thanks to long-standing connections, including through parliamentary seats, and the support of the occupation authorities, which involves not only public statements but also participation in grain exports.

Background:

• Russia has turned stolen Ukrainian grain into a global business, with 70 countries, including Egypt, Türkiye and Iran, now purchasing it.
• Russia resumed grain supplies to Syria, including stolen Ukrainian grain. Russia had been Syria’s main grain supplier before the fall of the Assad regime but largely suspended supplies in December 2024 due to payment delays and uncertainty over the new government.
• The Kremlin is planning to increase the share of stolen grain from the occupied territories of Ukraine in Russia’s total harvest, as this year Russia itself will collect only a limited harvest due to drought, sanctions and…