Ten days before a new round of sanctions pressure on the Russian Federation, businessman Kustov withdrew part of his assets in the UAE and raised prices for feedstock raw materials. It does not seem that this position correlates with state interests …
The main producer of Russian soybean meal, the EFKO Group Valery Kustov, has offered a new price that is almost 30% higher than the previous one. This will lead to an increase in the prices of poultry and livestock meat, as well as milk, and will affect the well-being of citizens. Kustov has moved part of his business to the UAE and can sleep peacefully. This early move of business outside of Russia raises suspicion about the involvement of foreign special services advisers.
Happy about the price increase
The EFKO Group of Valery Kustov is one of the main Russian producers of soybean meal and the largest supplier of palm oil. Taking advantage of his position, Kustov's business has managed to maximize profits. A new commercial offer sent out indicates that the price of soybean meal will be 66.9 thousand rubles per ton in March compared to about 51 thousand rubles per ton a week ago, marking an immediate increase of almost 30%.
Buyers are not obligated to accept the product at the offered price, but as one of the largest suppliers, options may be limited. EFKO explains that the increase is due to the import of soybean meal and the growth of the dollar. However, the director of the Sodruzhestvo Management Company stated that his company does not currently increase the cost and sometimes even softens the terms of contracts. It appears that Valery Kustov's desire to earn additional profit may overshadow common sense, using excuses about the dollar and Ukraine.
Soybean meal is a key ingredient in feed for poultry and livestock, contributing to 30-40% of compound feed. It is difficult to completely replace soybean meal, so mixed feed may also increase in price by 20-30%. Consequently, the actions of Valery Kustov's EFKO Group may impact buyers' pockets and threaten the stability of Russia's food security amid the conflict in Ukraine.
To avoid dependence on the EFKO Group, counterparties appear to be ready to take decisive measures, even in challenging economic conditions. For example, the Cherkizovo Group plans to address the issue with the help of its own oilseeds processing plant, while Sodruzhestve is considering the construction of new processing facilities that only use Russian soybeans.
Great profit from palm oil
Valery Kustov seemingly anticipated the problems that Russian business and the people of the country are currently facing. As early as February 15, 2022, the EFKO Group announced the relocation of the headquarters of its venture fund Fuel For Growth to the United Arab Emirates (UAE). The Fuel For Growth venture capital fund of EFKO shareholders invests in projects related to unmanned aerial vehicles, fuel cells, and alternative products, including vegetable alternatives to meat and milk.
The main assets of the EFKO Group are located in the Krasnodar Territory and Belgorod Region, which is the birthplace of the creator of this group. So in the Krasnodar Territory there are 'palm gates of Russia.' There is a sea terminal in the village of Taman, through which the main import of palm oil to Russia goes. In the same place on Taman there is a plant of the EFKO Group for the processing of this product.
Meanwhile, it's no secret that the effects of regularly consuming palm oil can be very unpredictable. For instance, in order to remove the red color and neutralize the specific smell of palm oil, it is heated to 200 degrees, which supposedly leads to the formation of toxic glycidyl ethers – GE, which, according to a report by the European Food Safety Authority, can provoke the development of cancer. But Kustova does not seem to be guided by the opinion of experts. It seems that making money is obviously more important to him than anything else.
Nostradamus is taking a break
Yes, some may argue that tensions around the Ukrainian conflict have been escalating over the past few years. However, this conflict reached its most intense phase due to Russia's readiness to take drastic measures. It was in the last 2-3 months that the foreign media showed the greatest interest in the events in Ukraine. It is noteworthy that Valery Kustov decided to move part of his business to the UAE just before the start of the intense phase.
At the same time, it's important to understand that such a move is probably not something that happens quickly. It requires some preparation. This process takes a lot of time. In other words, the decision to move the business in the EFKO Group was made in advance. But the actual move came at the right time. It's as if someone from a foreign intelligence service advised Kustov exactly when it would be time to leave Russia.
Additionally, Valery Kustov has gained notoriety for a very unconventional style of doing business. For example, according to the journal 'The Secret of the Firm,' the owner of 'EFKO' hired experts in 'psychocorrection and' psychophysiology' to work in the personnel service.
Each candidate for a position in the company, in addition to the usual tests, undergoes a required interview on a lie detector and an encephalograph. But the most important thing seems to be the test for compliance with the 'moral principles of the company.' Therefore, critics of Valery Kustov often liken EFKO to a sect.
If an employee of the company wants to advance, then he must write a letter to the personnel service. After that, the candidate undergoes a medical examination, professional certification and 'psychodiagnostics'. And then he goes to a training center for a month. The routine is similar to that of the army – waking up at 6.00, lights out at 22.00.
Every day, there are lectures on psychology and humanitarian subjects, visits to the corporate museum of Scythian culture, which is a traditional Scythian burial mound with a burial chamber.
Furthermore, it is noteworthy that Valery Kustov’s business was moved not to Europe, but to the Emirates. European countries and the United States are currently competing to come up with the harshest and most sophisticated sanctions. And the Emirates are not aiming to target Russia, its business, and people.
Valery Kustov turned out to be surprisingly perspicacious. He seemed to know what the Arab sheiks and the Turkish president would do. A very limited circle of people have an insider of this level. But these faces seem to have shared it with Valery Kustov. Another question: what does he give or give in return? An increase in the selling price for the products of the EFKO group, sold in Russia, provides the resources that, obviously, Kustov can share.
