As virtually the entire western world has moved to hold Russia accountable for its invasion of Ukraine, significant economic sanctions have been levied against the country and its accomplice state, Belarus. The sanctions have significantly isolated the two nations from much of the global economy. That includes cutting them off from western agricultural equipment.
CNH Industrial, parent company of Case IH and New Holland, John Deere and AGCO, parent of Massey Ferguson and Fendt, have all announced they have complied with international sanctions and cut off all shipments to both countries a few days after the conflict began.
In addition, they have all made significant donations to Ukraine relief funds. The largest of those publicly announced was from CNH Industrial, which donated US$500,000. AGCO donated US$100,000 and Deere made an unspecified contribution through the John Deere Foundation.
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“The John Deere Foundation has additionally been working directly with a number of organizations, including multiple UN agencies, to mobilize resources to support Ukrainians impacted by the crisis,” said the company’s official statement.
“The war in Ukraine jeopardizes the food security of those who rely on Ukrainian and Russian exports,” said AGCO in its announcement. “The AGCO Agriculture Foundation (AAF) previously announced a $100,000 donation to support the United Nations World Food Programme emergency relief efforts. These efforts provide food assistance to Ukrainian families and those in neighbouring countries impacted by the conflict. AGCO and the AAF have also created a ‘ShareTheMeal’ team campaign with the U.N. World Food Programme to raise the equivalent of 182,000 meals in three months as an extension of the total donation.”
One of the earliest and most strongly worded statements from the big three manufacturers came from CNH Industrial.
“CNH Industrial strongly condemns any and all acts of unprovoked violence and aggression and, especially, the current war in Ukraine, which is having a devastating impact on so many people, including many of our own employees and dealers,” it said. “The company has taken action to support Ukrainians impacted by this crisis by donating $500,000 to NGOs that are providing on-the-ground assistance to those in need, as well as establishing a global employee donation fund, with a dollar-for-dollar company match.”
Buhler Industries shakeup
Here in Canada, the war caused a shakeup on the board of directors at Buhler Industries, the parent company of Winnipeg-based Versatile and Farm King, with the removal of someone who was a public supporter of the Russian action.
“The board of directors has accepted the resignation of Konstantin Babkin,” read a statement from Buhler Industries on March 2. “Mr. Babkin has been a vocal supporter of the actions taken by the Russian Federation. These views are in stark contrast to those of the North American executive team and do not reflect the position or values of Buhler Industries. He will be replaced by Adam Reid, currently the vice-president of sales and marketing.”
At the time of writing, the Russian action in Ukraine continues. And this statement from AGCO sums up a common sentiment behind all of the major ag equipment brands — and the roughly 200 major corporations that have temporarily or permanently suspended their business operations in Russia in response to the war.
“Our hearts are with the people of Ukraine and all those directly impacted by this war. We will continue to take action to prevent this humanitarian crisis from becoming a global hunger crisis.”
