Cargill announces scaling back of business activities, halting of investments in Russia

Krystal Frasier KSTP

A Minnesota-based food company has announced it is scaling back business activities with Russia following the country’s invasion of Ukraine.

In an online statement Friday, Cargill said despite its long history in Russia, it is scaling back business activities in the country, and has also stopped investments.

Last year, Cargill, a food company based in Wayzata, became the majority shareholder of a deepwater port terminal near Odessa, Ukraine, on the Black Sea.

The statement went on to say Cargill will continue to operate its essential food and feed facilities in Russia, saying “food is a basic human right and should never be used as a weapon,” adding that the region “plays a significant role in our global food system and is a critical source for key ingredients in basic staples like bread, infant formula and cereal.”

In addition to scaling back business in Russia, the company says profits from its operations will be directed to humanitarian groups such as World Central Kitchen, Save the Children, World Food Programme, the Red Cross and others.

The company’s announcement comes on the same day that President Joe Biden announced the United States will be downgrading its trade status with Russia and will also ban imports of Russian seafood, alcohol and diamonds.

The move revokes the “most favored nation” status for Russia, which is being taken in coordination with the European Union and Group of Seven countries. Stripping the most favored nation status from Russia would allow the U.S. and allies to impose higher tariffs on some Russian imports, increasing the isolation of the Russian economy.

The most favored nation status has been a baseline for global trade, ensuring that countries within the World Trade Organization are treated similarly. Some countries in the WTO have special privileges due to their status as developing economies. Russia would join the ranks of Cuba and North Korea by not having MFN status from the U.S.

Cargill’s statement Friday also said the company puts people first and prioritizes the safety of employees.

Last month, a company spokesperson told 5 EYEWITNESS NEWS a vessel charted by Cargill was hit by a “projectile” as Russia attacked Ukraine, but stressed all crew members were safe and the vessel remained seaworthy.

The company did not reference the incident in Friday’s statement.

Full coverage of the conflict in Ukraine can be found here.

The Associated Press contributed to this report.