Foreign investors continue exodus from russian agricultural market Into Q1 2024; Danone deal possible, analyst suggests
Source: The DairyNews
The trend of foreign investors exiting Russia's agro-industrial market, which commenced in 2022 and persisted through 2023, is expected to extend into the first quarter of 2024, predicts the Finam Financial Group. During the Agroholdings of Russia 2023 conference in Moscow, Alexei Kurasov, Head of the Corporate Finance Department at Finam Financial Group, highlighted this ongoing trend.
Kurasov specifically mentioned the potential departure of Danone, indicating that the company might consider a discounted deal this year or the next.
On July 16, Russian President Vladimir Putin signed a decree transferring Danone's Russian business to the temporary management of the Federal Property Management Agency. The Chechen Republic's then Deputy Chairman of the Government and Minister of Agriculture, Yakub Zakriev, was appointed as the general director of the company, which was renamed H&N.
Kurasov also outlined the emergence of new institutional investors from China and the Middle East in the coming years, with expectations that they will play a key role in Russia's stock market by 2025-2026. While there is currently a focus on the development of the Far Eastern agro-industrial complex, especially in the fishing industry and livestock farming, Kurasov anticipates increased interest from institutional investors in the future.
In terms of investments in the agricultural sector for the current year, Kurasov estimates a total of $2.5 billion, primarily directed towards the land bank, processing, and logistics. Notably, there is a heightened demand for elevators and river-sea vessels, with agricultural companies expressing interest in building their own river-sea fleets for grain export.
On July 16, Russian President Vladimir Putin signed a decree transferring Danone's Russian business to the temporary management of the Federal Property Management Agency. The Chechen Republic's then Deputy Chairman of the Government and Minister of Agriculture, Yakub Zakriev, was appointed as the general director of the company, which was renamed H&N.
Kurasov also outlined the emergence of new institutional investors from China and the Middle East in the coming years, with expectations that they will play a key role in Russia's stock market by 2025-2026. While there is currently a focus on the development of the Far Eastern agro-industrial complex, especially in the fishing industry and livestock farming, Kurasov anticipates increased interest from institutional investors in the future.
In terms of investments in the agricultural sector for the current year, Kurasov estimates a total of $2.5 billion, primarily directed towards the land bank, processing, and logistics. Notably, there is a heightened demand for elevators and river-sea vessels, with agricultural companies expressing interest in building their own river-sea fleets for grain export.
