A company created in the wake of Russia’s invasion of Ukraine has become its top wheat trader in the space of a year. 

Grain Gates LLC was the biggest shipper of Russian wheat in the 2022-23 season that just ended, exporting 7.22 million tons, according to data from analyst ProZerno. It barely edged out TD Rif, which had been the biggest exporter since the 2014-15 season. 

Grain Gates has links to Demetra, which was the second-biggest Russian wheat exporter last season and is backed by state-owned lender VTB Bank PJSC. It’s run by Demetra’s former head of trading, Ilya Aliev, and was registered in June 2022, according to the Spark-Interfax database.  

Demetra and VTB, a lender subject to sanctions over the invasion, have sought to distance themselves from the new trading company. Russia’s agriculture sector itself has not directly been sanctioned, though it initially faced issues with financing and logistics due to the penalties.

“Grain Gates is not affiliated with Demetra-Holding, it’s one of commercial partners among various other companies we work with,” a Demetra spokesperson said. 

A spokesperson for VTB said it had neither shareholder nor financial relationship with Grain Gates. VTB head Andrey Kostin has said the bank intends to exit the grain business by the end of the year, and that having a sanctioned bank among shareholders of a company involved in international trade is “unfavorable,” according to the spokesperson.

Grain Gates didn’t immediately respond to requests for comment. 

Russia is set to be the world’s top wheat exporter for the second season in a row. Its record harvest and exports have helped cool grain prices after the invasion disrupted their shipment and sent food prices soaring. While Ukraine is still struggling to ship grain due to the war, the Kremlin has been strengthening its control of Russian grain markets after the departure of international traders Cargill Inc., Viterra and Louis Dreyfus Co. at the end of last month.