VTB acquires 50% of Taman Grain Terminal Complex LLC

Demetra-Holding LLC (part of VTB Group) acquired a 50% stake in Taman Grain Terminal Holdings Limited, which owns a 100% stake in Taman Grain Terminal Complex LLC (hereinafter TGTC), a deep-sea grain terminal specialising in the transshipment of grain. Demetra-Holding LLC acquired a stake from Kernel Holdings S. A., a Ukrainian agricultural holding. The partner of VTB in TGTC, which has the other 50% stake, remains Glencore Agriculture (through Renaisco B. V.), one of the world leaders in agricultural trade. The transaction meets all the requirements of Russian and applicable foreign law.

TGTC is the only specialized deep-see terminal that performs the transshipment of grain for export in the port of Taman. The further strategy of TGTC shareholders provides investments in the development and expansion of the terminal's throughput capacity, particularly by the construction of a railway line that allows receiving grain cargo from railway transport.

Yuri Soloviev, First Deputy Chairman of VTB Bank Management Board, noted: 'As part of VTB strategy in the grain market, the transaction will allow achieving significant synergy with the existing assets of the VTB Group in the field of infrastructure, logistics and grain exports by optimizing technological and business processes. Considering the current situation, modern infrastructure development and processes optimization are an important factor in the country's export capacity building and agricultural development in Russia. In the conditions of market volatility and global economic instability, the creation of a vertically integrated holding will increase the efficiency of Russian grain logistics, make pricing transparent, ensure capital inflow, and allow to upgrade the whole market infrastructure.'