Kernel, one of Ukraine’s largest agribusiness groups, has acquired a major agricultural holding with 41,000 hectares of farmland and a network of grain elevators, in a deal valued at over $100mn, the company confirmed this week.

The acquisition is one of the largest agribusiness transactions in Ukraine since the start of the full-scale war with Russia in 2022, and signals a renewed drive by domestic companies to consolidate land and infrastructure amid continued export disruptions and capital flight from the sector.

Ukrainian Business News reported on January 5 that the newly acquired holding includes arable land and key logistics assets in the central and western regions of the country. “We are expanding our land bank and reinforcing our infrastructure base to ensure long-term production and export capacity,” a Kernel spokesperson said.

Kernel has not disclosed the name of the seller or the precise location of the assets. However, market sources cited by UBN indicate the land is concentrated in regions less affected by active fighting and may include high-yield black soil areas critical to Ukraine’s grain output.

The acquisition aligns with Kernel’s strategic goal of scaling production and securing control over key parts of the grain supply chain, from cultivation to storage and export. The company already manages over 370,000 hectares of farmland and operates one of the largest grain export terminals in the Black Sea region.

“Despite the war, we continue to invest in Ukraine’s agricultural future,” the company stated. “This transaction confirms our confidence in the sector’s resilience and long-term potential.”

Ukraine remains one of the world’s top exporters of sunflower oil, maize and wheat. But Russia’s invasion has severely disrupted agricultural exports, with repeated attacks on grain infrastructure and the blockade of Black Sea ports. Kyiv has responded by increasing overland exports through the EU and boosting domestic grain storage and processing capacity.

Kernel’s deal also comes amid a wave of land consolidation following the 2021 lifting of Ukraine’s moratorium on farmland sales. While foreign ownership remains restricted, domestic firms with capital access are rapidly expanding their holdings, often acquiring distressed or underinvested farms.

The asset purchase marks Kernel’s first major acquisition since its delisting from the Warsaw Stock Exchange in 2023. The move followed a buyout by founder Andriy Verevskyi, who has since pushed for greater investment in Ukraine’s post-war recovery.

“This is a clear sign that some of Ukraine’s largest businesses are betting on long-term recovery and reconstruction,” said an industry analyst based in Kyiv.