Russia is using Ukraine’s farmland to fuel a global black market: Report

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.

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.

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