Dutch agro firms still active in Russia despite Ukraine invasion

Photo: DutchNews.nl

Several Dutch seed producers, greenhouse builders and agricultural machinery suppliers remain active in Russia despite the invasion of Ukraine, according to an investigation by the NRC and Investico.

Their products do not fall under EU sanctions, but the companies face growing practical and ethical scrutiny about their actions, the paper said.

The NRC identified 10 Dutch agricultural firms that have attended Russian agricultural trade fairs in the past two years. Eight were present this week at YugAgro in Krasnodar, one of the sector’s largest events.

The companies export goods that are largely exempt from EU sanctions, although specific items such as diesel engines for agricultural machinery are restricted.

Sanctions do not cover items which could affect the safe provision of food but are aimed at having an economic impact on people and companies which contribute to the war.

Some agricultural goods, such as flower bulbs and apple tree cuttings, are banned because they can be propagated, while cut flowers are permitted.

“If the product is not on the sanctions list, trade is allowed,” said international economics lecturer Tristan Kohl. “But whether it is morally responsible is another matter.”

The Netherlands is the second-largest supplier of agricultural machinery to Russia after Germany, according to research by Wageningen University and national statistics office CBS.

Most Dutch companies operating in Russia now do so through local subsidiaries, which means they also pay tax in Russia. Some maintain Russian-language websites and marketing channels, including podcasts, the paper said.

Economists told the NRC the activity is unsurprising given the global strength of Dutch seed breeding and greenhouse technology, although the financial stakes for the companies themselves are limited.

“These Dutch companies will not go bust if a Russian export ban is brought in tomorrow,” Wageningen professor Jack Peerlings told the paper. “And Russians won’t end up hungry because Russia is largely self-sufficient in food.”

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