Ukraine government stops payments to Minnetonka-based Cargill on $700M debt

The Ukrainian government has suspended payments on about $700 million it owes to Cargill in tandem with a massive debt reorganization tied to its war with Russia.

Cargill Financial Services International, the agribusiness giant’s trade financing arm, had lent money to the Ukrainian government before the war. Earlier this week, the Ukrainian Cabinet of Ministers decided to temporarily stop payments on the Cargill debt starting next week, according to several reports.

Minnetonka-based Cargill didn’t respond to requests for comments.

Cargill Financial Services primarily provides trade financing to companies and banks in several countries. It has long been particularly active in the former Soviet Union.

The Cargill repayment suspension is one of several measures Ukraine has taken recently as the war drains its assets. Ukraine’s overseas bondholders recently agreed to restructure $20 billion in debt the country owed, Bloomberg News reported this week. The bondholders agreed to accept losses of $86.7 billion, 37% of their claims.

The Ukrainian government also suspended payments to the holders of $825 million in bonds that a state-owned power company issued.

Cargill has been caught up in the war since Russia invaded Ukraine in early 2022. The company has long done business in both countries, from exporting grain to financing trade. In March 2023, Cargill announced it would stop exporting Russian grains from Russian ports. In September, Cargill said it would sell its 25% stake in a Black Sea Russian grain terminal.