EU, US, UK and allies implemented sanctions prohibiting Russia from acquiring modern agricultural machines and spare parts from it. Thanks to Andrey Lavrentyev and his Agromashholding.KZ these sanctions are ineffective as Russia still gets anything it wants.
It’s hard to believe, but after the collapse of the USSR, Russia became a net importer of food and grains, heavily relying on Western humanitarian aid and subsidies. However, during Putin’s years, there has been a dramatic change. Russia is now completely self-reliant and has achieved food production security. Moreover, thanks to its vast land resources and relatively small population, Russia quickly emerged as a major exporter, particularly in grains and vegetable oils, where it controls up to 20 percent of world trade. Russia strategically uses exports as a political tool, as evidenced by events surrounding the Ukrainian grain corridor. However, Russian dominance has one vulnerability: its dependence on Western supplies of tractors, harvesters, spare parts, and so on.
This is not a secret, and in an attempt to bring Putin back to rule-based international politics, the US, European Union, United Kingdom, Canada, and Japan implemented an embargo on agricultural machinery supplies to Russia. The results were minimal, as Russia established a network to bypass the sanctions. One participant in this network is Kazakhstani oligarch Andrey Lavrentyev, ranked #43 on Forbes’ list of top influential businessmen in Kazakhstan.
Andrey Lavrentyev and his companies: an introduction
Andrey Lavrentyev is the chairman of the board of directors and a shareholder of JSC “Allur Group of Companies,” where he owns a 7.08% stake. The group includes: LLP “Agromashholding,” LLP “SaryarkaAvtoProm,” LLP “Allur Distribution,” dealer centers LLP “Mitsubishi Center South,” LLP “Zhana Suzuki,” LLP “Allur Auto Almaty,” LLP “Allur Auto Astana,” LLP “Lion AutoCenter Almaty,” LLP “ZAZ Center Almaty,” LLP “Turin Auto,” LLP “Allur Auto,” LLC “Allur RUS,” LLC “Allur KZ.” In 2021, car production of KIA, Renault, and LADA was launched at the SaryarkaAvtoProm plant. Andrey Lavrentyev, among other things, is known for his offshore holdings in the Virgin Islands and Cyprus. Through these holdings, he acquired real estate in England. Since the imposition of sanctions against Russia, real estate purchases have increased. Therefore, it is most likely that Andrey Lavrentyev acts in the interests of his patrons in Moscow, just like other businessmen do.
By strange coincidence, Andrey Lavrentyev’s company, LLP “Agromashholding, records triple digits growth in sales since the war in Ukraine started. The reason is simple: Lavrentyev supplies Russians with the necessary tractor and harvester spare parts and Deutz Fahr vehicles.
Russian Terra Group is Agromashholding’s main partner in this trade. As you can see there is a wide assortment of Deutz Fahr vehicles present in the catalogue. Agromashholding HQ is in Kostanay (Kazakhstan) and one of the regional branches of Terra Group is in Tyumen. All Deutz Fahr machinery in Russia comes from Tyumen. What a lovely coincidence: there is only 317 miles between Agromashholding and Terra Group branch in Russia.
War and imposed sanctions have no effect on Terra Group either, because Andrey Lavrentyev and his Russian partners build a scheme to circumvent them. Of course Deutz Fahr management in Germany know about this circumvention and turn a blind eye to it. After all, Russian market is crucially important for the company.
Fun fact: when you access the Deutz Fahr site from Europe it does not display Russian dealers. Switch to Russian language in browser and you will get business as usual:
With new sanction package, however, aiding and abetting in evasion and circumvention of sanctions may result in secondary sanctions. Thus, Andrey Lavrentyev is risking to invoke sanctions on himself, his company Agromashholding, the other companies from the group and ultimately Deutz Fahr itself.
Andrey Lavrenyev’s efforts to conceal the trade
Recently, Andrey Lavrentyev made efforts to conceal the illicit trade. News about supplies from Kazakhstan to Russia were deleted. But nothing is lost without a trace. Let’s take a look at the following URL: https://www.agbz.ru/news/traktory-i-kombayny-deutz-fahr-budut-postavlyat-v-rossiyu-iz-kazakhstana
It renders an empty page. However the Google cache of it tells another story:
Here is what the article tells:
Tractors and combines from Deutz Fahr will be supplied to Russia from Kazakhstan
Terra Group has signed a contract with the Kazakh plant “Agromashholding KZ,” which produces Deutz Fahr equipment since 2021, for the supply of tractors and combines to the territory of Russia. The volume of deliveries until the end of 2023 will be approximately 100 units.
Starting from May 2023, Deutz Fahr tractors and combines will be available for purchase in Russia due to the established production of equipment at the localization center in Kostanay, Republic of Kazakhstan. The federal dealer network of Terra Group has entered into an exclusive distribution agreement for the brand’s equipment produced at the partner plant SDF Group in Kazakhstan – Agromashholding KZ.
Originally specializing in the production of diesel engines since 1982, the company expanded its production complex in the early 2000s to include combines and tractors, including brands such as Essil, Lovol, and Kirovets. In 2021, the company signed a contract with SDF Group for cooperation within the localization project and the implementation of Deutz Fahr equipment. In 2022, a total of 370 units of the brand’s equipment were produced.
The first units produced by the plant for Russia have already arrived at Terra Group warehouses in the Tyumen, Belgorod, and Oryol regions. In total, 100 units will be imported by the end of the year, with the prospect of increasing the volume of deliveries to 350 units in 2024.
The range includes classic wheeled tractors with a power range of 140-340 horsepower, equipped only with Tier 3 standard engines simplified for Russia. These include well-known models to Russian consumers such as 6180 W Profi, 6145W HD, 4100 W, as well as the 6G series – AGROTRON 6155G and 6205G. The tractor Agrotron 9340 TTV with a power of 340 horsepower and a classic layout will occupy a special place in the offering, as there has been a growing demand for such tractors in Russia over the past 10-15 years, and they are currently underrepresented. These are the most in-demand agricultural vehicles due to their versatility compared to tractors with articulated frames, whose operation is limited exclusively to traction work.
The brand’s combines, which have already gained the trust of domestic agricultural producers, will effectively expand Terra Group’s portfolio. The range of imported harvesting machines includes the C7206 TS model with a 366 horsepower engine and 7.2- and 9-meter headers, equipped for harvesting not only grain crops but also soybeans, rapeseed, oil-bearing and confectionery sunflowers.
The manufacturer’s warranty applies to the equipment for up to two years or 2,000 engine hours, both for combines and tractors. The distributor has prearranged comprehensive after-sales service for the equipment, including the supply of the entire range of spare parts and lubricants from Agromashholding KZ.
Terra Group acts as the distributor of Deutz Fahr equipment produced by Agromashholding KZ in all regions where its own branches operate. Partners will work in the remaining territories of the country.
“We are expanding opportunities for Russian farmers to purchase and service equipment without the need to revise established production processes and adapt the existing MTS base to new conditions. This primarily applies to livestock farms, vegetable and fruit producers, and row crop growers who employ equipment capable of working with high-efficiency machinery,” commented Alexey Potapov, Head of the Deutz Fahr department at Terra Group. “The first samples of equipment imported to Russia will be showcased at upcoming Field Days throughout the country, where our company will participate.”
Andrey Lavrentyev’s role in circumventing the sanctions imposed against Russia is proven. His company Agromashholding KZ is supplying Russia with the necessary equipment to dominate as an agricultural superpower, abuse it in the interest of politics. Deutz Fahr as a bare minimum knows about the scheme and pretends that business should go as usual.
This article is sent to NAZK for consideration to include Andrey Lavrentyev to the lists. After all, it’s up to Ukrainians to deal with it and start the sanction process. Deutz Fahr HQ will be also notified.
