How Russia Profits From Ukraine Invasion on the Global Black Market

The Kremlin and its allies are said to have obtained exuberant sums of money from the lands they already controlled on Ukrainian soil.

From Russia began its invasion in Ukraine On February 24, 2022, Kremlin troops focused on continuing their advance into the territory. .

But beyond the armed conflicts on the various combat fronts, They sought to profit from the lands they had already been able to occupy .

Specifically, of the grain industry one of the most important in the Ukrainian economy.

It appears that Russian forces and their allies They profited from the grain stolen from their fields and sold on the black market. .

The mechanism they have adopted since the beginning of the war is as follows: When they take control of an area, they take over the crops of local farmers. .

According to various reports, In some cases, they force them to “sell” their grain, but at excessively low prices and by means of violent threats. .

This has helped ensure that President Vladimir Putin’s government is able to to face international sanctions and maintain its war machine .

In the same way, allowed its allies to buy grain at lower prices.

Among the customers who benefited from these measures are a company affiliated with the Iranian Revolutionary Guards and a Crimean businessman with business ties to Syria and Israel plus another company that sells through the United Arab Emirates.

The legal director of the Human Rights organization Accelerate Justice Project Pascal Turlan, helps Ukrainian prosecutors investigate grain theft .

In conversation with The Wall Street Journal said that “It’s as if the war feeds on itself” .

Under this line, Turlan said that “illicit trade generates revenue for a Kremlin-sponsored patronage system, which in turn contributes to the continuation of the conflict and occupation “.

The Russian government has not responded. to requests for comment from the above-mentioned media.

Although the exact commercial value of theft is difficult to determine in a context such as war, There are some estimates .

Deputy Minister of Agriculture of Ukraine Markiyan Dmytrasevych said: Since 2022, at least 4 million tons of grain and other products have been shipped directly from occupied areas to international markets. .

Such operations, they assume, would involve revenues of around $800 million for the Kremlin.

The non-profit association Text states that The total value of grain seized by Russian forces could reach 6.4 billion of the same currency.

While grain is being stolen from occupied Ukrainian lands, Russian troops also attack export ships from the country of President Volodymyr Zelensky.

In fact, Kyiv accused On Wednesday, September 11, a Russian missile hit a ship carrying Ukrainian wheat. just after leaving a Black Sea port bound for Egypt.

Ukrainian farmers
How Russia is profiting from Ukraine’s invasion on the global black market. Photo: Farmers harvest wheat in Donbass region, Ukraine, July 13, 2022.

How Russia profits from grain stolen from its occupied territories in Ukraine

The Journal’s investigation details that There are multiple ways for Russia to profit from stolen grain. .

For example, there is knowledge of three bulk carriers that are illegally exporting it and which belong to the Russian state company United Shipbuilding Corp. through a chain of companies.

said company also produced warships used to bombard cities during the invasion, the US government blamed.

A document obtained by the project KibOrg News which records such activities in Ukraine, specifies that Russian company selling grain from occupied Zaporozhye region donated $111,000 to battalion who fights in the province.

The director of a silo in Kherson, a southern region that Russia took control of at the beginning of the war, told the aforementioned media: In August 2022, men armed with machine guns showed up at his office and told him they had “orders to take control.” .

Bohdan Katerenyak assured that they wore balaclavas to cover their faces and that youNone of them showed him a Federal Security Service (FSB) ID card. from Russia.

A few days later, another subject returned, also claiming to be an agent of the organization and confiscated the grain he had in the facility .

Faced with the risks of this imminent scenario, He chose to flee to territory controlled by Ukraine .

Later they informed him that the silos on his farm remained empty .

They report that the Russian attackers They ship their products by truck and train to ports along the Black Sea. from where they are then transported on ships.

Ukrainian prosecutor Ihor Ponochovniy opened an investigation in June into a Turkish ship called Usko MFU, which allegedly transported stolen grain in 2023 from the port of Sevastopol in Crimea .

It is good to remember that Russia took control of Crimea in 2014 .

Despite the fact that Russian authorities claim to have sent 15 ships with 81,000 tons of wheat from Mariupol – occupied Ukrainian territory – to Turkey, the latter country assures that it is cooperating with Ukraine to block the illicit trade .

After reporting that the Usko MFU had entered Ukrainian waters in June, prosecutor Ponochovniy issued aa search warrant for the police to search the ship .

There they found signs indicating had left Sevastopol in November 2023 for Turkey, with a cargo of 2,100 tonnes of wheat and seeds valued at around half a million dollars.

In addition, they found a message from the ship’s managers in which They ordered the captain to hide the origin of the cargo .

Ukrainian farmers.
How Russia is profiting from Ukraine’s invasion on the global black market. Photo: A combine harvester harvests in the village of Muzykivka, Kherson region, Ukraine, July 26, 2022.

Finally, the ship was confiscated by the border force.

Both the ship’s owner, USKO Shipping Management, and the captain’s lawyer, They declined to comment. to the American newspaper.

Business records reviewed by the Journal show that Agro-Fregat LLC, headed by businessman Mikhail Ganaga, receives grain from occupied Ukrainian lands and sends it to destinations such as Israel and even Syria and Iran .

Neither he nor his company responded. to requests for comments.

Syria and Iran are allies of the Kremlin and have said they will not bow to pressure. so that they do not trade with Russia.

The director of a grain terminal in Crimea, Igor Rudetsky, published recordings on his networks in 2023 showing a meeting with representatives of the shipping lines of the Islamic Republic of Iran .

This signature is sanctioned by the United States due to accusations that they were shipping weapons on behalf of Iranian military and nuclear companies.

Rudetsky’s publications reflect this He also visited Pars Holding, an agricultural company that is part of a foundation controlled by Iranian Supreme Leader Ali Khamenei. .

In a message to the Journal, Rudetsky said that met these companies as part of an international marketing campaign which also included China, India and Africa.

He also denied selling any products and He said he bought the port “with real money” in a “legally impeccable” deal. in addition to ensuring that Russian grain exports themselves are not restricted by international sanctions.

However, Countries that do not consider Crimea part of Russia consider exports from their ports illegal. because it is an occupied territory.

Ponochovniy accused exporters They take measures such as mixing grain of Ukrainian origin with other legitimate products in order to be able to sell it on international markets. and thus go unnoticed, which makes the assessments more complex.

Ukrainian prosecutors in Kharkiv are also investigating a company suspected of having stole grain from their land and sold it to a United Arab Emirates company, Helios Plus .

They suspect that this company also sold large quantities of stolen products. on the black market .

Nevertheless, They also did not respond to requests for comment. from the Journal.

Source: Latercera

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