HarvEast

In late 2023, Dmitry Skornyakov, CEO of Ukrainian agribusiness HarvEast, was navigating the turmoil caused by Russia’s invasion of Ukraine that began in 2014 and escalated into full-scale war in February 2022. Before the full-scale invasion, HarvEast managed 127,000 hectares (ha) of farmland in Ukraine and generated about $100 million in revenue from three businesses: commodity crops, seeds, and horticulture. Due to Russia’s war and occupation, HarvEast’s land bank now totaled 32,000 ha, its horticulture business had been overtaken, and its commodity business was loss making. Compared to many Ukrainian agribusinesses, HarvEast was in an advantaged position, as the seeds business continued to perform well. Yet Skornyakov’s outlook was sobering. He expected the war, in some form, to last as long as Russian President Vladimir Putin remained in power. And he expected many Ukrainian agriculture companies to approach bankruptcy within a couple years. His primary goal for HarvEast was survival until Ukraine’s victory. How could he achieve it? Should HarvEast continue investing in Ukraine? What does the future hold for agriculture in Ukraine, known as the breadbasket of Europe? What lessons does HarvEast's experience hold for agribusinesses and business leaders in other settings, given mounting uncertainty and risk in the global geopolitical landscape and food system?