Another large agro-trader, ADM, is considering exit options from the Russian Federation

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Archer-Daniels-Midland Co. is considering exiting its Russian business amid news of similar moves by traders Cargill and Viterra.

It is reported Bloomberg citing people familiar with the matter.

The company is considering the possibility of selling its 50% stake in the joint venture with the Russian partner Aston. Launched in 2018, the company processes corn to produce sweeteners and starch for the Russian food industry.

ADM’s possible move is related to the fact that ADM’s competitors – Cargill Inc. and the Glencore-backed company Viterra – are retreating from the Russian market. They are the two largest Western exporters of Russian grain.

While ADM’s Russian business in the country is very limited and mainly focused on sweeteners, the company’s Wild Flavors division, which produces flavors and colors for the food industry, also has a presence in Russia.

“The situation in Russia remains volatile, and we will continue to constantly monitor and evaluate our limited activities there,” a representative of ADM said in a Bloomberg comment. “We will, of course, continue to comply with all US sanctions, laws and regulations.”

ADM announced last year that it had reduced its operations in Russia.

We remind you:

Viterra, one of the world’s largest grain traders, plans to stop export of Russian grain.

One of the largest global suppliers of agricultural products – American Cargill – stop it export of grain from Russia, the company is among the top 10 exporters of Russian grain.

In March 2022 reportedthat global agricultural traders Cargill Inc and Archer-Daniels-Midland Co are scaling back business activities in Russia but will continue to work with “essential” food products.

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