A Message from Andriy Vadaturskyy, new CEO of NIBULON

Dear Partners, Clients, and Friends of NIBULON

NIBULON has rapidly developed in all directions of its multipurpose activities for 30 years. The company’s innovative practices and significant investments in grain transportation infrastructure have contributed significantly to the dramatic expansion of the Ukrainian agricultural sector in recent decades. NIBULON’S highly efficient logistics have connected Ukraine’s farmers with the global food market. As a result of it, Ukraine is renowned as a supplier of high-quality grain and a successful example of the development of modern inland logistics.

NIBULON's operations span fourteen regions of Ukraine; we own and operate a modern fleet of over 80 vessels. We have trading relationships with 75 countries across the globe and are proud to contribute to the alleviation of hunger in some of the poorest countries through our co-operation with the UN World Food Programme.

The five years preceding February 24th 2022 were the most successful in NIBULON’s history. The war has brought immense challenges to Ukraine’s economy and to the agrarian sector in particular. NIBULON, tempered by numerous challenges, has again demonstrated its resilience in the face of adversity. The company coped with the economic turbulence of 1998 followed by the global financial crisis a decade later, and the recession of 2014-15. Each time, we emerged stronger.

I have succeeded my father as CEO of NIBULON after his and my mother’s tragic deaths on July 31st this year. The war has not only deprived NIBULON of its founder, it has also seriously disrupted the company’s operations and core tasks. Our production, logistics and exporting capabilities have all been affected. 20% of the company’s assets are under occupation in the southern and eastern regions of Ukraine, and our export volumes have dropped sharply compared to previous years. Since NIBULON cannot operate today as normal, transportation costs have increased by up to ten times for farmers. This has reduced their profits and inflated prices for the end consumer.

As CEO, it is my responsibility to find solutions to today’s challenges and put NIBULON in the best possible position to continue its growth when the war ends.

I am pleased to say we have completed the first phase of construction of NIBULON’s newest terminal in Izmail in Odesa Region, a project started by my late father. This will help us alleviate some of the disruption to our established export routes. Ukraine’s Minister of Infrastructure referred specifically to the new river port facility at Izmail at the Ukraine Recovery Conference held in Lugano in July. The European Union has emphasized the importance of creating new logistics routes of this kind between Ukraine and EU markets pending the restoration of Ukraine’s access to Black Sea routes.

These and other recent investments by NIBULON will help preserve our position in the market and ensure that our business remains sustainable and not depend exclusively on the temporary grain corridor through Odesa remaining open.

Our cash flow is stable thanks to partners who retain trust in our ability to deliver. We are grateful to our partners for their support and flexibility at this difficult time.

NIBULON is one of Ukraine’s largest employers, and we are committed to supporting our employees through these unprecedented times. Maintaining jobs and salaries remains my priority.

While our focus is on addressing the challenges of today, we are also preparing for the opportunities of the future. I have recruited an international advisory board to support the management team and we are introducing new corporate governance procedures in line with best international practice.

In his last “Message from the Owner”, my late father Oleksiy Vadaturskyy wrote, “the more you want to do for your own country, the more complicated the challenges are. The more you want to give, the more effort you have to make.”

These words ring especially true today. My father was a titan of the domestic agricultural sector, a true Hero of Ukraine. His guiding influence and dedication to Ukraine and NIBULON are a source of inspiration for us all. NIBULON symbolises his and Ukraine’s resilience. His motto was ‘never give up.’

My mission is to ensure that NIBULON continues to be a strong and healthy company for the years to come - for the benefit of Ukrainian society, our employees and the farmers we serve. Our continued success will strengthen Ukraine’s economy and global food security.

With best wishes at this difficult time

NIBULON's CEO

Andriy Vadaturskyy

IC UAC according to NIBULON's Press Office