More than 3,000 companies located in the temporarily occupied part of Kherson Oblast have been registered in the Russian business register since 24 February 2022.
Source: a research by Vgoru, a media outlet in Kherson Oblast
Details: “Many of them operated under Ukrainian law before the full-scale invasion, but were either seized by the occupiers or had their owners voluntarily decide to work under Russian law and continue business under the new conditions,” Vgoru says.
Last year, some companies on the occupied left bank of the oblast earned hundreds of millions of roubles. Over a hundred companies reported net profits in the tens of millions. Taxes paid by these companies are funnelled into the Russian budget and finance Russia’s war against Ukraine, the outlet notes.
The most profitable companies on the left bank of Kherson Oblast in 2024 were mostly engaged in grain cultivation, which Russian registries list as the main activity for the majority of companies in the region.
Among the companies involved in grain production are Servis Miaso, Yug-Opt, Farm Plus and Kherson Stroi Spets Snab. The top earner is the “state” Kherson Grain Company, created by the occupation authorities, which organises grain shipments for export. It earned RUB 224 million (about US$2.7 million) in 2024.
“Businesses with multi-million revenues belong to collaborators, their relatives, and affiliated businesspeople. They profit from seized Ukrainian property and the trade in Kherson’s grain,” the outlet notes.
The research shows that companies are able to earn millions thanks to long-standing connections, including through parliamentary seats, and the support of the occupation authorities, which involves not only public statements but also participation in grain exports.
Background:
Russia has turned stolen Ukrainian grain into a global business, with 70 countries, including Egypt, Türkiye and Iran, now purchasing it.Russia resumed grain supplies to Syria, including stolen Ukrainian grain. Russia had been Syria’s main grain supplier before the fall of the Assad regime but largely suspended supplies in December 2024 due to payment delays and uncertainty over the new government.The Kremlin is planning to increase the share of stolen grain from the occupied territories of Ukraine in Russia’s total harvest, as this year Russia itself will collect only a limited harvest due to drought, sanctions and limited access to machinery, while grain sales in June already dropped by 34.5%.It was previously reported that Ukraine plans to appeal to the European Union to impose sanctions on Bangladeshi companies importing wheat from Ukrainian territories occupied by Russia. Bangladesh has failed to stop this trade even after Ukraine officially stated that the grain was stolen and provided evidence.Earlier reports suggested that Russia had been supplying what was likely stolen Ukrainian grain to the Houthis, who control most of Yemen. This conclusion was drawn by Bellingcat and Lloyd’s List after studying the movement of a ship transporting grain.A Russian state-owned company exported almost 212,000 tonnes of grain from the occupied part of Zaporizhzhia Oblast in 2023 alone, worth an estimated US$46 million. Ukrainian grain is being shipped to Türkiye, Libya and Israel.Defence Intelligence of Ukraine has released data on another 42 vessels of Russia’s shadow fleet, which are involved in exporting sanctioned Russian and Iranian oil, stolen Ukrainian grain and coal from occupied territories, and refuelling Russia’s fleet.
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