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September 19 (Reuters) – Soft commodities trader Bunge Ltd (BG.N) announced on Monday that it has agreed to sell its oilseeds processing business in Russia to Karen Vanetsyan, the majority shareholder of Exoil Group.
The sale includes the sunflower processing plant in Voronezh.
Bunge and its competitors Archer-Daniels-Midland Co (ADM.N), Cargill Inc (CARG.UL) and Louis Dreyfus Co (LDC) (AKIRAU.UL) – part of the so-called ABCD Quartet of global grain traders – had started in March after the invasion of the country in Ukraine with the reduction of their Russian activities. Continue reading
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Bunge did not provide financial details about the deal on Monday. The Exoil Group did not immediately respond to a request for comment.
According to the Russian version of its website, Bunge has invested $130 million to build the Voronezh plant, which opened in 2008. The plant has an annual capacity to process 540,000 tons of raw material, producing more than 200 million bottles of sunflower oil.
“We are grateful to the team for continuing to deliver essential food and feed in this challenging environment,” said Greg Heckman, Bunge’s chief executive.
The company has scaled back its Russian grain trading operations in recent years, including the sale of its Rostov grain export terminal last year.
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Reporting by Arunima Kumar in Bengaluru; Adaptation by Uttaresh.V and Jonathan Oatis
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