Since the 2022 invasion, Russia’s control over Ukrainian farmlands has intensified, leading to the commandeering of nearly $1 billion worth of grain, as confirmed by Ukrainian officials and The Wall Street Journal. This stolen grain, often taken under duress or through coercion of local farmers, is channeled into an expansive black market, connecting military manufacturers with global traders across the Middle East and North Africa.
In a notable enforcement action, Ukrainian authorities in July 2024 detained a Cameroon-flagged vessel, the USKO MFU, on the Danube River. The ship was found transporting over 3,000 metric tons of illicit grain from Crimea, a region annexed by Russia in 2014 and a known hub for such illegal exports.
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Russia’s illicit grain network involves significant players such as the United Shipbuilding Corporation, a major military contractor responsible for producing warships that have been used in attacks against Ukrainian cities. This network not only funds Russia’s military operations but also aims to maintain the Kremlin’s influence in its occupied territories, circumventing international sanctions.
Financially, the network is robust, with entities in the occupied region of Zaporizhzhia contributing directly to the war efforts. According to The Wall Street Journal, a company from this region sold grain and then donated 10 million rubles to a Russian battalion actively engaged in Ukraine, showcasing the direct link between the grain trade and military funding.
These operations have drawn international reactions, with countries such as Egypt, Israel, and Lebanon adjusting their imports after discovering the grain’s origins. The issue extends beyond trade, however, affecting global food prices and the stability of international grain markets.
Ukrainian and international efforts to curb these activities face significant hurdles due to the complex nature of the trade routes and the difficulty in tracing the origins of the grain once it has been mingled with other shipments in Russia.
Tags: Black Market, Grain, Russia, Russian Defense Ministry, Sanctions, Sanctions, Ukraine, Ukraine Defense Ministry, Wall Street Journal
[Craig Nigrelli]
SINCE THE RUSSIAN INVASION IN 2022 — A SHADOW WAR HAS UNFOLDED ON UKRAINE’S FARMLANDS — WHERE MOSCOW’S FORCES HAVE COMMANDEERED NEARLY $1 BILLION WORTH OF GRAIN. THIS GRAIN IS CHANNELED INTO A SPRAWLING BLACK MARKET — INCLUDING DEALINGS ACROSS IRAN,SYRIA AND THE UAE, THE WALL STREET JOURNAL REVEALED. THIS HAS TRIGGERED INTERNATIONAL RESPONSES, WITH EGYPT, ISRAEL, AND LEBANON ADJUSTING THEIR IMPORTS AFTER DISCOVERING THE GRAIN’S ILLICIT ORIGINS.
IN JULY 2024 — UKRAINIAN AUTHORITIES SEIZED A CAMEROON-FLAGGED VESSEL ON THE DANUBE RIVER CARRYING OVER 3-THOUSAND METRIC TONS OF STOLEN UKRAINIAN GRAIN FROM CRIMEA — A KEY HUB FOR ILLEGAL EXPORTS SINCE RUSSIA ANNEXED IT IN 2014.
UKRAINIAN OFFICIALS SAY THESE ACTIVITIES NOT ONLY FUND RUSSIA’S MILITARY OPERATIONS BUT ALSO DISRUPT GLOBAL FOOD MARKETS. STOLEN GRAIN, OFTEN REROUTED THROUGH RUSSIA TO OBSCURE ITS ORIGINS, COMPLICATES SANCTION ENFORCEMENT AND DRIVES UP GLOBAL FOOD PRICES.
RUSSIA’S ILLICIT GRAIN TRADE HAS BECOME A KEY ECONOMIC FACTOR IN ITS CONFLICT WITH UKRAINE, INVOLVING A VAST NETWORK OF MILITARY MANUFACTURERS AND INTERNATIONAL TRADERS.
THE STATE-RUN UNITED SHIPBUILDING CORPORATION, WHICH MANUFACTURES WARSHIPS USED IN ATTACKS ON UKRAINIAN CITIES, PLAYS A CENTRAL ROLE IN THIS NETWORK, THE JOURNAL SAID. FINANCIAL CONTRIBUTIONS FROM THESE ENTITIES BOLSTER RUSSIAN MILITARY EFFORTS SIGNIFICANTLY.
FOR INSTANCE, A COMPANY ONE RUSSIAN-OCCUPIED REGION, KNOWN FOR TRADING GRAIN, DONATED 10 MILLION RUBLES TO A BATTALION INVOLVED IN ACTIVE COMBAT IN UKRAINE, ACCORDING TO THE JOURNAL.
THIS EXTENSIVE SYSTEM MAINTAINS THE LOYALTY OF VARIOUS STAKEHOLDERS WITHIN RUSSIA’S INFLUENCE — BYPASSING THE EFFECTS OF INTERNATIONAL SANCTIONS.
AND IN TURN — THE GRAIN — FALSELY REPRESENTED AS PART OF LEGITIMATE BUSINESS TRANSACTIONS — FINANCES MOSCOW’S MILITARY OPERATIONS AND STRENGTHENS ITS GEOPOLITICAL POSITION WITHOUT DRAINING STATE FINANCIAL RESOURCES.
I’M CRAIG NIGRELLI – FOR MORE UNBIASED UPDATES GO TO THE STRAIGHT ARROW NEWS APP
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