World Grain - January 2023 - 24

FEATURE: NEW ERA AT NIBULON
WG: Did your father ever talk to you
about the possibility of him being targeted
by Russian President Vladimir Putin
and you having to take over leadership of
the company? Did he ever consider moving
to a safer part of the country or even
out of the country?
Mr. Vadatursky: Of course, from a security
standpoint, I continuously tried to
convince my parents to move to a safer
place. However, our family has always
been committed to staying and investing
in Mykolaiv, where Nibulon has always
been headquartered. After my parents were
killed, so many people in Mykolaiv told me
how much it meant to them that my father
stayed throughout the war, even when he
had the means to go elsewhere. My parents
would never have left Mykolaiv, and
Nibulon remains committed to the city and
the region. We want to contribute to making
it once again a thriving hub of commerce
and trade. In the past months, I decided to
move Nibulon's headquarters to Kyiv, further
away from the frontline to ensure the
team's relative safety and the efficiency of operations.
Oleksiy Vadatursky
our business operations. Large areas of
agricultural production as well as grain
elevator complexes and river terminals
are now in occupied territories, and we
have approximately $92 million in fixed
assets that are intact but inaccessible in
these areas. Additionally, we have not
been able to use our shipping fleet at all
because of the blockage of seaports and
the passage of rivers through the occupied
territories. We are, therefore, actively rerouting
our exports via land routes, but
at a much higher cost. This caused our
exports to drop significantly. From Jan. 1
to Nov. 15, 2022, Nibulon exported 1.7
million tonnes of grain, a 164% decrease
from the same period in 2021. These
wartime disruptions have been felt across
Ukraine's agricultural industry - the UN
estimates Ukraine's agricultural sector in
total has suffered damages and losses of
$30.5 billion.
Andriy Vadatursky
WG: How is the construction of the
terminal in Izmail going? How important
WG: Your father has been described a " bigger than
life " figure in Ukraine. What lessons did you learn from
your father about running the company? What are the
biggest challenges you face in succeeding him during
this time of such uncertainty due to the war?
Mr. Vadatursky: My father's dedication to Nibulon
and to Ukraine are a source of inspiration to me and to
the company. The greatest lessons I have learned from
him are about resilience. His motto was " never give up, "
and he successfully steered Nibulon through previous
periods of external disruption. I will do everything in
my power to build upon my father's legacy. I am proud
of the role Nibulon has played in developing Ukraine's
agricultural and shipping infrastructure, the jobs we
have created for thousands of Ukrainians, our trading
relationships with over 75 countries and our partnership
with the UN World Food Programme. My management
style is distinct from my father's. I'm focused on modernizing
the company, implementing a corporate governance
structure, and have recently appointed an international
advisory board. I'm confident that these decisions
will help Nibulon emerge from this difficult period as a
healthy, resilient, and innovative company.
WG: To what extent has Nibulon's production, logistics
and exporting capabilities been impacted by the invasion?
Mr. Vadatursky: The war has seriously disrupted
24
is its completion to the company's success?
Mr. Vadatursky: Nibulon is actively seeking solutions
to the disruptions caused by the war, and we have
been among the only companies to invest into new construction
projects during the war. We have completed
the first phase of construction of the new terminal at
Izmail. Once complete, the terminal will alleviate some
of the disruption to our established export routes and reduce
our reliance on the UN Black Sea Grain Initiative,
which has suffered from inefficiencies and uncertainty.
These types of investments will be critical for ensuring
that Ukraine's agricultural sector can withstand the
disruptions from Russia's war, paving the way for our
country's future economic recovery and reconstruction
when the war comes to an end.
WG: Your father was a leading advocate of creating
new export routes to offset Russia's blockade of the
Black Sea ports. Are you going to continue his work
in this regard? Will these routes be used even after the
conflict is resolved?
Mr. Vadatursky: While we must regain access
to the Black Sea ports to fully restore our exports to
pre-war levels, investing in new routes is essential to
preserving Ukraine's agricultural sector and laying the
groundwork for future economic recovery. The more
export routes we have, the better. In the long run, diversified
export capabilities will ensure us against risks
and further increase efficiency.
January 2023 / World Grain / World-Grain.com
Photo courtesy of tonyphotography, Nibulon
http://www.World-Grain.com
World Grain - January 2023

Table of Contents for the Digital Edition of World Grain - January 2023
