The agribusiness titan Rusagro has transferred a portion of its controlling interest in one of its meat production units to the government of the Belgorod region, authorities announced on Thursday, two months following the arrest of its billionaire owner, Vadim Moshkovich.
Vyacheslav Gladkov, the governor, shared on Telegram that “a share of the Agro-Belogorye enterprise has been moved to the trust management of the Development Corporation of the Belgorod region.”
Rusagro began its acquisition of Agro-Belogorye in 2019 and completed the process last November, positioning itself as the second-largest pork producer in Russia.
In a press release later that day, Rusagro clarified that a minority share in Agro-Belogorye was handed over to the Development Corporation of the Belgorod region in May 2024.
“The objective of this transfer is to ensure that the Agro-Belogorye Group fulfills its responsibilities to the Belgorod region. The agreements made are designed to enhance socio-economic collaboration between the business and the region, aimed at creating better living conditions and improving the well-being of residents in Belgorod,” the statement explained.
Moshkovich, who is ranked as Russia’s 55th richest individual with a net worth of $2.7 billion, was detained in March, marking the first time a Forbes-listed billionaire has been arrested in Russia since the onset of the full-scale invasion of Ukraine.
Along with former Rusagro CEO Maxim Basov, he faces accusations of large-scale fraud, abuse of office, and bribery. If found guilty of fraud and abuse of power, both could face up to ten years in prison, and up to fifteen years for bribery.
They will remain in pre-trial detention until at least August 25.
Ilya Shumanov, an anti-corruption expert and former head of Transparency International Russia, told the investigative outlet Agentstvo that Moshkovich’s arrest seems to be a “prelude” to the state taking control of his assets.
“The decision to transfer such an asset to the regional level is quite a novel approach from the government,” Shumanov commented. “I suspect that the regional authorities will not ultimately retain ownership of Moshkovich’s asset.”
Since its invasion of Ukraine in 2022, the Russian government has engaged in extensive wealth redistribution, including the nationalization of assets worth 1 trillion rubles ($10.8 billion), referred to by the government as strategic assets. When announcing the Belgorod region’s acquisition of the Agro-Belogorye stake, Gladkov vaguely referenced “strategic goals.”
The Moscow Times reported last year that the Russian state seized a record 544.7 billion rubles ($6.7 billion) in assets from at least 67 companies in sectors such as food, real estate, and retail.
Officials in Russia, including President Vladimir Putin, have denied that there is a widespread campaign of de-privatization or nationalization occurring in the country.
