Sunflower Seed Dispute: Russia Ordered to Pay $1.6 Million

A commercial court in Luhansk Oblast has ordered the Russian state to pay 65.36 million hryvnia, approximately 1.6 million dollars, to Oliiar. The private company lost a large inventory of sunflower seeds after Russian forces seized its storage facility in Svatove in early 2022.

The legal dispute stems from a purchase agreement signed in October 2021. Oliiar contracted to buy 4,700 tonnes of sunflower seeds from the 2021 harvest. Prydniprovske Agrarian Company LLC acted as the seller, while Svatove-Ahro LLC managed the storage. The supplier delivered the full amount to a warehouse in Svatove. By February 24, 2022, the facility had transferred 2,592 tonnes to Oliiar, leaving 2,107 tonnes in storage.

Following the start of the full-scale invasion, Russian armed groups took control of the warehouse. Oliiar never recovered the remaining seeds. The court found that the company provided conclusive evidence linking the loss directly to Russia's armed aggression. Consequently, the Russian Ministry of Justice, representing the state, is liable for the damages.

The compensation amount was determined through an expert valuation. Oliiar is registered in Pustomyty, Lviv Oblast. Iryna Zalizna is the founder, and Iryna Podoba serves as the director. This decision aligns with a prior ruling by the same court. In that earlier case, the court ordered Russia to pay 51.67 million hryvnia, or 1.25 million dollars, to Trading House Agrokhim LLC for property lost in Svatove and Kakhovka.

The ruling establishes a specific financial liability for the state of Russia in this commercial dispute. The court’s decision is final regarding the valuation and the responsibility of the Russian Ministry of Justice to transfer the funds to Oliiar.