According to the information released by the company on its official website, Agrokultura has completed sale of its operations in Kaliningrad, Russia for the total of SEK 100 million (USD 7 million). Additional agreements that account for the residual land and assets, which constitute additional 7% of the payment mentioned above, are expected to be signed and the payment made by June 15, 2015. Company is carrying out its divestment strategy due to the need of its operations optimization and additional working capital. UkrAgroConsult reports decline of company’s share price of 20.3% over the past month of June, 2014. We associate this trend directly with geopolitical situation in the region: unrests and armed riots in Ukraine on one side and sanctions against Russia from EU, U.S., Canada on the other. After the news regarding sale of assets were released, volume of company’s shares traded on Stockholm Stock Exchange rose to 2.5 million per daily trading session, compared to 50-100 thousand shares per day on the average. However even increase of trading activity did not result in share price increase, having lost another 1.3% over Tuesday trading session to SEK 2.32 per share.

UkrAgroConsult has completed review and recommendations study on investing in Ukrainian Agrarian Sector. You can follow this link to find out more about the study “How to profit from Ukraine’s agricultural sector?”. In case you are interested in state of agrarian sector within CIS region, please follow the link below to read UkrAgroConsult monthly report “Agrarian Business in Ukraine” for January 2014 (featuring Ukraine). First issue is free of charge. You can subscribe to the report to receive it on a monthly basis.

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