The biggest privately held company in the U.S. has been operating in the area for decades and says food should never be used as a weapon.
n February 24, in the first hours of Russia’s unprovoked attacks on Ukraine, a Russian projectile hit a ship in the Black Sea called the. The ship was chartered by Cargill, one of the world’s biggest grain traders. Since then, Russian guns have pummeled the port city of Yuzhny, just east of Odesa.
Cargill has said it’s scaling back operations in Russia, where it does less than 5% of its global business. Trade experts say Cargill’s decision to remain in the country is also an effort to hold on to market share when it comes to domestic competitors. The real risk for Cargill, and its U.S.-based rivals ADM and Bunge, is that pulling out of Russia would open up the market for nationalization, according to S&P analyst Chris Johnson.
“Cargill is sitting with substantial fixed and sunk investments in both of the countries,” Vaaler said. “What companies have substantial assets in both countries? Not many. They’re trying to manage their diplomatic position with both governments.”