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Automatically translated version. May contain inaccuracies compared to the original.
Before the full-scale war, Ukraine’s agricultural sector was growing steadily every year. In 2021, according to the Ministry of Agrarian Policy, the share of agriculture in GDP was larger than other sectors of the economy, exceeding 10%. Agricultural exports accounted for almost 41% of Ukraine’s total exports. Russian aggression significantly limited the capabilities of Ukrainian agribusiness. Yet even under full-scale war, the Ukrainian agricultural sector contributes 17% of GDP and nearly half of the country’s foreign-currency earnings. RBC-Ukraine spoke with the owner and CEO of agribusiness holding Nibulon, Andriy Vadatursky, about how agribusiness is faring today. Key points: Gaining Independence: Nibulon was founded in 1991 and is inextricably linked to the development of Ukraine’s economy. Record export: in 2021 Nibulon delivered 5,6 million tons of product, with a share of overall exports of 9-12%. Russian aggression: the agribusiness lost five elevators, more than 25 thousand hectares of land — in total 68% of its assets. Full-scale war: since 2022 the company has invested 70 million dollars in the Ukrainian agricultural sector, of which 10 million went to digitization. Demining: Nibulon returned 7,6 thousand hectares of land to use and plans to begin demining waterways. Strategy: Ukraine needs a vision for the future and a plan for 10, 20, 50 years. – Nibulon is probably one of the oldest agricultural companies on the Ukrainian market. Speaking of the period before the large-scale war, what stages did the market and the company go through? – Nibulon was founded on 5 December 1991. A few days earlier, on 1 December 1991, a national referendum took place in which 90% of Ukrainians voted Yes! for an Independent Ukraine. So Nibulon and Independent Ukraine are the same age; since then we’ve been together in sorrow and in joy. The history of our company is inseparably linked with the development of the Ukrainian economy. Our business model formed around the needs of the agricultural producer. We provide the farmer with everything needed to work, and he focuses on the main thing — cultivating the crop and developing the farm. At first the idea was that we would supply collective farms and farmers with seed, they would grow commodity corn, and Nibulon would sell it abroad. That did not work well, so the company took up supplying and processing diesel. Diesel went to farms so they could plant, and the harvested crop was given to us at a certain coefficient. – So it was barter? – Yes. That was before the hryvnia reform. There was no money, and even when there was, hyperinflation quickly wiped it out. Later Nibulon collected sunflower seeds and produced sunflower oil. During that period, before mass privatization, we were the largest exporter of oil from Ukraine. But that business model also had to be changed soon. We began leasing land and purchasing equipment. Probably the first German tractors in Ukraine were at Nibulon. Thus by 1995-1996 we became an agroholding with a full cycle. And since we had land, we began to grow wheat and barley in addition to sunflower. For the market in general the situation improved around 2006-2008, when people began buying shares. Before that, farming the land simply wasn’t profitable. People came and asked: take us in like a collective farm. And roughly from 2008 the agricultural business became profitable and people began to invest. Ukraine returned to the production levels of 1990-1991 years and began exporting its agricultural products. Andriy Vadatursky, CEO of agribusiness holding Nibulon (photo: Nibulon) – Didn’t we export before that? – Before that we imported. For example, the capacities of Mykolaiv port were set up to unload products, not the other way around. When I joined Nibulon in 2000, my first contracts were for importing corn and wheat. From 1991 to 2008 Ukraine made huge strides in agriculture, and Nibulon followed this path as well. We changed Ukrainian agriculture. – How so? – A simple example: in 2005 we were the first to supply corn to the European market. Before that Nibulon and others loaded products exclusively for Russia, because those quality standards, the GOSTs and DSTUs, worked only within the Soviet Union. Europe demanded different standards. I personally traveled the regions, selecting the best corn. We gathered farmers, explained European standards to them, taught them new growing methods and approaches. Ukraine reached third place in corn exports worldwide. Nibulon alone supplied up to 1 million tons of corn per year. – What share of Ukrainian agricultural exports did Nibulon account for? – Our share fluctuated between 9-12%. The percentage share remained stable while tonnage increased year by year. I remind you that from 2008 until the large war Ukraine increased agricultural exports by 7 times — from 10 to 70 million tons per year. Nibulon in 2021 exported 5,6 million tons of product. The business model was built on creating added value across the entire chain — from field to world market. We invested in infrastructure to reduce storage and transportation costs for grain and give producers the opportunity to earn more. After all, the world price for grain is one thing, but the price the farmer receives largely depends on logistics costs. The more efficient and cheaper it is, the more remains for the producer. With the development of the Ukrainian agricultural sector we faced two challenges. On one hand, production and export volumes grew so quickly that existing rail and road infrastructure could no longer efficiently handle transporting all that grain. On the other hand, ways had to be found to significantly reduce logistics costs so Ukrainian products remained competitive on world markets. Therefore Nibulon focused on creating the most efficient transport — rivers. We revived Ukraine’s river transport arteries — the Dnipro and the Southern Buh. We built a network of elevators and transshipment terminals and created our own fleet. More than 80 barges, tugboats and other vessels were built at Nibulon’s shipyard in Mykolaiv. The company’s fleet and terminal in Mykolaiv (photo: Nibulon) That’s how we created an efficient logistics system that delivered Ukrainian agricultural products from producer to buyers in 34 countries around the world. And most importantly — it allowed Ukrainian farmers to get more from their harvested crops. But the Russian war changed everything. – Where were you personally on 24 February? – At home in Mykolaiv. I had just returned from Kyiv from a meeting of major business representatives called by the President at the Bankova. I was asleep when my wife woke me. Everything stopped that day. Some of our railcars were seized by the Russians. Ships were held at berths. Before that Nibulon loaded 10-20 thousand tons of product per day. That’s about 300 railcars or 800 trucks, or a ship. And that whole mechanism stops. Some grain had been brought to enterprises that were later captured by the Russians. But we settled accounts with the farmers who remained on the Ukrainian side. Even for the grain that Nibulon did not actually receive, we paid. And there were Russian tanks in Mykolaiv… They entered with flags and were shot. Respect to General Marchenko, who organized Mykolaiv’s defense, and to all the defenders. – Mykolaiv was retaken. But did the ability to do business return? Loss of land, elevators… How much did Nibulon lose? – Everything really split into before and after. As a result of Russian aggression Nibulon lost 68% of its assets, about 600 million dollars. Worst of all, people died. On 31 October 2022 three people died on a ship that the Russians fired upon from the Kinburn Spit with an ATGM, despite knowing it was a civilian vessel. Five elevators, more than 25 thousand hectares of land. Our port in Mykolaiv is still completely blocked due to mined waters. The destruction of the Kakhovka HPP and fighting on both banks of the Dnipro destroyed river logistics. We also lost logistics on the Southern Buh. In other words, we lost our competitive advantage — the efficient logistics we had built over previous years. We began thinking what to do next. Thus the idea arose to move logistics to the Danube. Oleksiy Opanasovych (Vadatursky, Nibulon’s founder, Andriy Vadatursky’s father — ed.) presented the idea to Kubrakov (Oleksandr Kubrakov, Minister of Infrastructure of Ukraine in 2022-2024 — ed.). The ministry team, local authorities and European partners involved in the EU’s Solidarity Lanes initiative supported us. In April 2022 we began building a new terminal in Izmail, and by 15 September had already loaded the first barge. Of course, there were discussions about the advisability of such investments. There are ports of Greater Odesa, and in July 2022 the grain corridor began operating. Was it worth investing in new infrastructure on the Danube under such conditions? Ultimately we agreed on the main thing: you cannot trust the aggressor. Ukraine cannot depend on a single export route whose operation the aggressor can stop. As it turned out, we were right. The Danube route became an alternative for export while the situation around the ports of Greater Odesa remains uncertain. Oleksiy Vadatursky, founder of agribusiness holding Nibulon (photo: Nibulon) – Unfortunately, your father did not see the first loaded barge (31 July 2022 Oleksiy Vadatursky, together with his wife Raisa, was killed by Russian shelling in his home in Mykolaiv). – My father left us a survival kit — this backup option on the Danube and a resilient company capable of withstanding the worst trials. He and my mother were from a generation used to working with full dedication. Not even for money, but for the state, for a common cause. All of Nibulon’s business was built on maximum independence. We never built a business model on subsidies or the like. And now we rely on our own strength. Especially since some banks don’t fully understand us; we don’t fit standard calculations. On one hand, 68% of our assets were destroyed by Russia, we operate during wartime, on front-line territories. On the other hand, we invest during the war: we built a new terminal in Izmail, invested 10 million dollars in digitization, and Nibulon was and remains critically important for foreign-currency earnings, exports and the Ukrainian economy overall. Some partners sometimes asked: Are you even alive there? Oh, you’re still working? Oh, you’re still earning?! – What are Nibulon’s current numbers? – We are profitable. In the last marketing year we exported 2,39 million tons of grain and oilseeds. That’s approximately 5,1% market share. We remain among the top five exporters. It’s too early to speak for the current year, but as of early October our elevators received 1 million tons of the new harvest. We continue to invest. We invested more than 20 million dollars in the Bessarabian branch on the Danube. Overall, during the period of the full-scale war we have invested 70 million dollars in agriculture and transport logistics in Ukraine. Mined waters create a major problem. Of the 52 thousand hectares of the land bank left after occupation, over 5 thousand hectares were mined. So since 2025 we have been engaged in demining land. It’s not a typical activity for an agroholding, but it would be wrong to sit and wait for the state to have the capacity to clear them. We had to purchase special equipment, train people and obtain certifications, but the land is returning to use, people no longer blow up and can work — this is our contribution to recovery. It’s not really business, more a social mission. Since then Nibulon has returned 7,6 thousand hectares of land to use. We are grateful to the German state bank DEG, with which 50% on 50% financed this project. Together with them we are moving to a new stage — demining waterways. This summer we obtained certification and will be able to clear water bodies as well. We are now building infrastructure and training people so that when waterway demining becomes available to us, Ukraine will already have all necessary capacities and qualifications domestically. – You mentioned 10 million dollars invested in digitization. How justified is that during a war? – 100% justified. Again, it’s about flexibility and openness to any scenario, especially during a war that destroys familiar models. We digitized many processes to free up labor and use it most effectively. Thanks to this, at an elevator instead of 120 people 10-15 work, and the director manages the enterprise from a tablet. New technologies and equipment in agriculture mean that instead of 26 workers per thousand hectares, 4-5 are sufficient. The same applies to transport, the fleet, accounting, and so on. In wartime you cannot afford inefficient processes. We are ready to pay market wages, and even more, and to train people. For example, we developed the NIBULON App for farmers, where you can analyze purchasing-price statistics for six crops at 21 Nibulon branches. From one month to 10 years — study, compare, track trends. The app also allows you to sign contracts, monitor finances and much more. – That doesn’t look much like the pastoral rural scene we’re used to. It’s some kind of digital village. – Evolution is vital. Things will not be as they were before the war. Sometimes change is tied to shock, but we have no other option. I think Ukraine will become the most digitized, automated and robotized country in the world. Andriy Vadatursky, CEO of agribusiness holding Nibulon (photo: Nibulon) – How will Ukraine’s agricultural sector develop further? – The Ukrainian agricultural sector is already competitive on the world market today. I am confident that we will emerge from this crisis even stronger — more technological, productive and resilient to new challenges. Our task is not simply to restore pre-war positions but to create a new model of the agricultural sector capable of setting efficiency standards on the global market. Access to ports remains critically important for this. Our geography, the proximity of agricultural producers to port infrastructure, has historically been one of the key competitive advantages of the Ukrainian agricultural sector. We must not only restore this advantage but strengthen it by developing alternative export routes. We need to fight for Ukraine’s economic independence and economic interests. For this we must support businesses that create jobs, pay taxes, provide foreign-currency inflows, and bring new technologies and investments into the country. This is especially true for front-line regions. Today, due to war risks, lack of affordable insurance and limitations in bank financing, it is increasingly difficult to operate and invest in these territories. As a result, enterprises stop or relocate, people leave, communities lose jobs and tax revenues. We effectively cede the economic potential of these territories. Much can be changed at the level of state regulatory policy. Mechanisms for insuring war risks are needed, access to financing and banking rules that take into account the real conditions of doing business during the war. We must view enterprises that continue to operate and invest in front-line regions not only as sources of risk but as a strategic resource for the country’s recovery. At the same time we need clear and equal rules for everyone — regardless of business size or sector. Ukraine needs a vision, a strategy for 10, 20, 50 years: where we want to be, what economy we are building, what competitive advantages we are developing. And concrete decisions and plans for each year. – A personal question: you took over Nibulon in the summer of 2022 after the death of your parents. Did you consider selling the company? In turbulent times, when it’s unclear how long the war will last, with losses… You yourself say the war erased the usual business models that made Nibulon successful. – I did not consider selling, though offers were made. Bringing in a strategic investor is possible, but selling — no. My father put himself into Nibulon, moving from one challenge to another. He overcame barriers, built infrastructure, and built relationships with farmers. He weathered waves of raider attacks and other attempts to take the business. Nibulon grew with Independent Ukraine. It paved new paths, sought new opportunities, and inscribed Ukraine into the global map of food security. I have worked at the company since 2000. Yes, with breaks — for example, when I went to parliament in 2014. But Nibulon has always been part of my life. I couldn’t simply sell the company and walk away. I have a desire to create something of my own. I think it’s a very Ukrainian trait — to build, develop and defend what you created. Challenges actually stimulate. In my school years I competed in swimming professionally, and since 2006 I began running. I ran a ten-kilometer race, then 20 km, then a marathon. Of the seven marathons I ran, two were extremely difficult. When cramps start, pain, your legs simply don’t obey. Your brain says: what are you doing, stop! But you must force yourself and keep running. This experience, the physical and moral preparation, and having a marathon plan can teach you a lot. Even if the next day you can’t walk and your toenails come off, the feeling of leaving your comfort zone is a step forward. Overcoming a crisis and working on mistakes are similar in sport and in business. It helps to better understand yourself, assess the situation and make more conscious decisions. Crisis marathons taught me the most.
Document: PDF proof of the original version of the news item "Як у марафоні, так і в бізнесі подолання кризи вчить краще оцінювати ситуацію і рухатись вперед: інтерв’ю з Вадатурським". It records the publication content at the moment of the first scan, the preservation date and the source: RBC-Ukraine.
