Belgorod Region Takes Control of Meat Producer Following Arrest of Rusagro Owner

The Russian agribusiness titan Rusagro has transferred a portion of its controlling interest in one of its meat production companies to the Belgorod regional government following the arrest of its billionaire owner, Vadim Moshkovich, as reported by officials on Thursday.

Governor Vyacheslav Gladkov announced via Telegram that, “A portion of the Agro-Belogorye company has been placed under the trust management of the Development Corporation, which is affiliated with the Belgorod region.”

Rusagro began its acquisition of Agro-Belogorye in 2019 and concluded its consolidation last November, making it Russia’s second-largest producer of pork. In a press release issued later on Thursday, Rusagro confirmed that a minority share in Agro-Belogorye was handed over to the Belgorod region’s Development Corporation in May 2024.

“The rationale for the transfer was to guarantee that the Agro-Belogorye Group fulfills all its commitments to the Belgorod region. The agreements established aim to enhance socio-economic collaboration between the business and the region, facilitating the creation of better living standards and welfare for residents of Belgorod,” the release stated.

Moshkovich, who ranks as the 55th wealthiest individual in Russia with a fortune of $2.7 billion, was taken into custody in March, marking him as the first billionaire listed by Forbes to be arrested in Russia since the onset of the Ukraine invasion.

Alongside former Rusagro CEO Maxim Basov, he faces serious allegations of large-scale fraud, abuse of power, and bribery. If found guilty of fraud and abuse of authority, both could be sentenced to up to 10 years in prison, while bribery charges could lead to sentences of up to 15 years.

They will remain in pre-trial detention at least until August 25.

Anti-corruption specialist Ilya Shumanov, who previously led Transparency International Russia, indicated to the investigative outlet Agentstvo that Moshkovich’s arrest seems to signal a “prelude” to the state taking control of his assets.

Shumanov remarked, “The transfer of such an asset to the regional level is quite an innovative government move. I would speculate that the regional authorities will not ultimately retain ownership of Moshkovich’s assets.”

Following its invasion of Ukraine in 2022, the Russian government has significantly redistributed wealth, which includes the nationalization of assets worth 1 trillion rubles ($10.8 billion), deemed strategic in nature. During the announcement of the Belgorod region’s acquisition of the stake in Agro-Belogorye, Gladkov alluded to “strategic goals.”

Last year, the Moscow Times reported that the Russian state seized a record 544.7 billion rubles ($6.7 billion) in assets from at least 67 companies across sectors like food, real estate, and retail.

Russian officials, including President Vladimir Putin, have refuted claims that the country is undergoing a widespread campaign of de-privatization or nationalization.