Page 15 - bne_August 2023_20230802

bne August 2023 Companies & Markets I 15
Russia grain production, export m tonnes
countries like Yemen or Somalia but rather to stabilise the market and contain prices, which in turn hurt countries’ ability to purchase food,” the Wilson Centre reported.
“China's corn import sourcing has become more diversified since October 2022, marking a shift from heavily relying
on the United States and Ukraine,” USDA says. “Brazil has significantly increased its market share through a surge in corn exports to China, following an agreement in May 2022 to allow imports from Brazil. This has impacted US market share due to competitive prices. Other smaller exporters have also benefited from China's efforts to diversify trade. This move reflects a broader trend among large Asian buyers, such as South Korea, Japan, and Vietnam, to mitigate risks related to food security and trade disputes.”
The need to diversify import sources of grain has been impressed on governments around the world due to trade disputes, the global COVID-19 pandemic, and the war in Ukraine. By expanding the number of countries from which to import, China is reducing unpredictability and better meeting its substantial demand for feed grains, thus enhancing its own food security.
Source: Rosstat
customer for corn in particular. While the Black Sea grain initiative has been billed as keeping supplies of grain to Africa flowing to prevent a food crisis, the reality is that very little Ukrainian grain goes to Africa and most of it is sold to China and the EU, and Ukraine’s main export is corn, not grain.
“Most of the grain that had been held up in Ukrainian
silos after February 24 was corn (not wheat), contracted by international companies, not necessarily to feed people but, for example, to use as biofuel or animal food. Therefore the agreement wasn’t designed to immediately avert famine in
Notorious Ukrainian oligarch Kolomoisky on his back foot as pressure on him mounts
bne IntelliNews
Igor Kolomoisky, the Ukrainian oligarch, has been facing a series of challenges that have affected his business empire and political influence, NV.ua reported in a long profile of the businessman’s woes.
Following the Russian invasion of Ukraine, his oil companies Ukrnafta and Ukrtatnafta were placed under the control
of the Ministry of Defence, and his attempts to challenge this temporary nationalisation were thwarted. He received
a warning from the Office of the President, stating that he should remain silent or he would be deported to the United States to face justice there, where he is under sanctions and suspected of being involved “in large-scale corruption”. As a result, Kolomoisky complied with the warning.
While Kolomoisky still retains a significant business portfolio, including metallurgy, gas stations, media outlets and an airline, his dreams of reclaiming Privatbank, Ukraine's largest consumer bank, remain elusive. Furthermore, his
oil business is gradually slipping away, and he is unable to travel abroad due to an ongoing FBI investigation. His once- dominant position has been undermined, with the need to visit the National Anti-Corruption Bureau of Ukraine for
questioning and endure searches of his home by security services. His fortune has fallen from an estimated $10bn pre-war to around $1bn now, after most of his known assets were frozen by a London court.
Kolomoisky has always been known for finding a way
out of difficult situations, but the current challenges he
faces are proving to be more formidable. He returned to Ukraine in 2019 after two years of exile during Poroshenko’s presidency, hoping to regain what he had lost under the previous administration. He focused on suing Privatbank and diminishing the influence of rival oligarch Rinat Akhmetov in the energy sector. He also aimed to increase his political power by supporting loyal MPs in the ruling party.
Initially, it seemed that Kolomoisky had significant influence and could achieve his goals. However, the adoption of the Anti-Kolomoisky law in May 2020 that made it impossible for the former owner of bank that has been nationalised to retake control of it and the government's victory on appeal prevented the return of Privatbank to its former owners. The relationship between Kolomoisky and the President's Office soured, and he became toxic in the eyes of the United States,
www.bne.eu