Russian-owned Buhler Industries unaffected by sanctions, so far Tractor company condemns invasion, supports peaceful resolution to crisis By: Martin Cash Posted: 7:00 PM CST Friday, Feb. 25, 2022

Hey there, time traveller!
This article was published 24/02/2022 (938 days ago), so information in it may no longer be current.

The Russian owners of Winnipeg-based Buhler Industries have not been affected by Canadian sanctions against Russian individuals and business entities in response to the Russian invasion of Ukraine.

But according to at least one Canadian-based Russian pro-democracy activist, that does not mean they won’t be affected in the future.

In 2007, Combine Factory Rostselmash Ltd. acquired 80 per cent of Buhler Industries, makers of Versatile tractors, and late last year acquired another 16.7 per cent.

“Any Russian entity operating in this country or anywhere else in the western world right now has to be pretty nervous about what is happening.”
– Marcus Kolga

The Russian company is based in Rostov-on-Don, which just happens to be very close to the border with the eastern Ukraine province of Donetsk, one of the regions that Russia recognized as independent prior to the invasion. It is one of the largest combine manufacturers in the world.

Some of the Russian-based directors of Buhler Industries, which is listed on the TSX Exchange, have been connected to a political party that has encouraged the Putin regime to take action against Ukraine in the past.

None of the Russian directors or executives of Buhler were included in the government of Canada’s list of 382 Russian individuals on whom the country recently placed sanctions.

But Marcus Kolga, a documentary filmmaker, journalist, digital communications strategist, and a leading Canadian expert on Russian and Central and Eastern European issues and who is a senior fellow with the Macdonald-Laurier Institute, believes that Canada is likely not done with sanctions yet.

“Any Russian entity operating in this country or anywhere else in the western world right now has to be pretty nervous about what is happening,” Kolga said. “They may not have a problem now, but things could change of course.”

Earlier this week, Canada’s Prime Minister, Justin Trudeau, said, “Canada condemns in the strongest possible terms Russia’s egregious attack on Ukraine. Canada is taking strong action to stand up for what is right and protect the rights and freedoms of the Ukrainian people. Let me be clear: there will be serious consequences for Russia’s actions.”

Kolga said he was not aware of any direct connection between those Buhler officials to Putin or his inner circle.

But he said, “They are probably keeping a very close eye on what is going on.”

On Thursday, the company issued a statement saying, “The Russian Federation has invaded Ukraine. Buhler Industries Inc. is strongly opposed to this action and does not condone this attack. The executive team of Buhler Industries is united in the condemnation of the actions taken by the Russian Federation. We are deeply disappointed by the current events and are in support of a quick and peaceful resolution and offer our condolences to those affected and share in their grief.”

The company statement goes on to say that while it is owned by a Russian company it is a Canadian company and, “Our values are rooted in North America where the company has been in operation since 1932.”

Adam Reid, an official at Buhler Industries, would not comment on any suggestion of concern the company has about possible sanctions in the future.

“Buhler Industries has not exported products to Russia since 2019 and no longer does business in the region,” he said. “These sanctions announced yesterday will not impact current business strategy.”

The Canadian government has halted all export permits to Russia as part of the current sanctions package.

Reid said, “The company will continue operations as usual, maintain production targets and continue to build tractors and implements to support farmers in North America.”

“Buhler Industries has not exported products to Russia since 2019 and no longer does business in the region.”
– Adam Reid

James Bezan, the Conservative MP who has represented the riding of Selkirk—Interlake—Eastman since 2004, is vice-chair of the Canada-Ukraine Parliamentary Friendship Group.

Although not specifically targeting the Rostselmash executives, he said, “These Russian oligarchs who are supporting the despot Vladimir Putin and his barbaric attack on Ukraine will pay a price. Their business interests and other assets here in Canada could easily be frozen, and they could be banned and sanctioned from entering Canada.”

Kolga said he was surprised that Canada was only targeting exports at this time.

“There have been calls for a complete embargo of the Russian economy and that would include any sort of export out of Russia,” he said.

martin.cash@freepress.mb.ca

Martin Cash
Reporter

Martin Cash has been writing a column and business news at the Free Press since 1989. Over those years he’s written through a number of business cycles and the rise and fall (and rise) in fortunes of many local businesses.

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