The owner of the grain exporter “Delivery by Sea” received the share of the international trader Viterra who left the Russian Federation

The Russian assets of the international trader Viterra, who left the country, were transferred to different owners. A share in the Taman grain complex with a transshipment capacity of up to 5.5 million tons per year with an estimated value of 3.7 billion rubles. received Ilya Kosykh, owner of the grain exporter “Delivery by sea”. Such assets allow exporters to increase their shipments and earn money on transshipment services, experts say.

The indirect owner of more than 25% of the Taman grain terminal complex (ZTKT) became Ilya Kosykh, owner of the grain exporter Delivery by Sea. This follows from the explanations to the reporting of ZTKT LLC for 2023. Kommersant’s interlocutor on the market also knows about the deal. According to him, the share of the international trader Viterra, which, along with Cargill and Louis Dreyfus, announced the cessation of grain exports from Russia from July 2023, probably passed to Mr. Kosykh.

Since October 2023, Ilya Kosykh and General Director of Delivery by Sea LLC Natalya Tugaleva also joined the board of directors of ZTKT, as follows from the reporting of the grain complex. At the same time, Dmitry Kondakov, a former top manager of Viterra in Russia, left the board. Owned by Mr. Kondakov and his partners, Agribusiness Management LLC previously bought from Viterra the operating business MZK Export and a terminal in Rostov-on-Don with a capacity of up to 1.5 million tons per year.

Reporting the sale of Russian business in the report for 2023, Viterra included in one paragraph the companies MZK Export, Rostov KHP and Antex+ that were transferred to Agribusiness Management, and in another – 50% of ZTKT. The cost of the first transaction is $42 million, the second is $40 million (RUB 3.7 billion at the Central Bank exchange rate as of April 3, 2024). Viterra did not answer Kommersant. Agribusiness Management declined to comment.

Natalya Tugaleva confirmed to Kommersant that Delivery by Sea acquired a stake in ZTKT on market conditions. According to her, this is an opportunity for the company to strengthen its position in the market and the transaction will allow optimizing processes in the field of infrastructure, logistics and grain export. “Delivery by Sea,” according to data from market participants, in the first half of the season—July–December 2023—exported about 340 thousand tons of grain, which corresponds to 12th place. The company estimates revenue for last season at $366 million.

Another 50% of ZTKT belongs to Demetra-Holding, which also owns the Novorossiysk Grain Terminal (NGT), a share in the Novorossiysk Bread Products Plant (NKHP), etc. As stated on the holding’s website, ZTKT can transship up to 5.5 million tons of grain in year and store 192 thousand tons at a time. ZTKT owns two berths capable of handling Panamax and Postpanamax vessels.

According to two Kommersant sources in the industry, Ilya Kosykh may also act in the interests of Demetra-Holding in the transaction in ZTKT. For the latter, according to them, the purchase of Viterra’s share could be difficult, including due to US sanctions against VTB, which previously owned 45% of the asset. But a Kommersant source familiar with the deal denies any connection between Demeter-Holding and Delivery by Sea. Demetra-Holding only told Kommersant that they did not sell their stake in ZTKT.

General Director of Prozerno Vladimir Petrichenko notes that a share in the terminal will allow not only to ensure the transshipment of its volume, but also to earn money from providing services, which, taking into account current rates, can be a very profitable business. On the NZT website the cost of transshipment is indicated at 1.56 thousand rubles. per ton. As Mr. Petrichenko notes, ZTKT’s rate is comparable, and with agreements on the export of large volumes there may be discounts.

Sovecon director Andrei Sizov does not see any risk of a decrease in turnover and profits for owners of grain terminals in the short term. According to him, wheat exports in the new season are again expected to be close to record levels, including due to the likely good new harvest. Although new terminals are being built, competition in terms of infrastructure is not growing significantly, the expert notes. But, he warns, in the long term, grain exports will be affected by a decrease in farmers’ incomes, including due to duties on grain exports.

Anatoly Kostyrev