Russian VTB Group negotiating Kernel's grain terminal purchase — sources

VTB Group is negotiating a purchase of Kernel's 50 per cent share in the deep-water grain export terminal in Taman (Russia), RBC writes.

“The terminal in Taman has the annual transshipment capacity of up to 3.5 million tons of grain. It is currently owned by the Swiss trader Glencore and Kernel through a 50/50 joint venture. The companies became owners of the grain terminal in 2012, having bought it from EFKO (mayonnaise and Sloboda sunflower oil producer),” the message says.

At the time of the transaction, the terminal value was estimated at USD 265 million, the Kernel report said.

Kernel was one of the Ukrainian companies sanctioned by the Russian government in early November 2018. The sanctions involved accounts freezing and a ban on the withdrawal of funds abroad.

“Today, the share of Kernel in the grain terminal in Taman is, in fact, frozen. The VTB Group received government approval to buy out the company's share,” the message states.

Previously it was reported that by the end of 2018/19, Kernel was set to increase the elevator capacity by 245 thou. tons.