In a significant development in the Russian agricultural sector, police conducted a raid on the offices of Rusagro, one of the country’s largest farming conglomerates, on Wednesday. Authorities also questioned the company’s billionaire founder, Vadim Moshkovich. According to sources within the company, the searches are connected to a criminal investigation into allegations of embezzlement, although specific details remain unverified.

The Interfax news agency reported that Rusagro's CEO, Timur Lipatov, is also being interrogated by investigators. Following the news of the raids, Rusagro's shares plummeted by approximately 18%. 

In a statement, Rusagro acknowledged that several offices had been subject to search but assured stakeholders that the operation was unrelated to its ongoing business activities. "We understand that this situation may raise questions among our clients, partners, and employees, so we hasten to assure you: the company fully complies with the law and is ready to provide all necessary assistance to authorized bodies," the statement read. The company emphasized that all operations are proceeding as normal and that it continues to meet its obligations.

Established in 2004 by Moshkovich, Rusagro is Russia's leading producer of sugar, meat, and oil products, ranking among the top five landowners in the nation. The company was designated last year as one of the "economically significant enterprises" vital to Russia's economic sovereignty.

Moshkovich, who served in the upper house of the Russian parliament from 2006 to 2014, stepped down as chairman of Rusagro in 2022 after facing Western sanctions. He reduced his ownership stake in the company to below 50%. While not currently under Western sanctions, Rusagro is the only major agricultural firm listed in Russia, with its shares recently quoted on the Moscow Stock Exchange after replacing the GDRs of its former Cyprus-based parent company.