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Winnipeg's Buhler Industries, almost wholly Russian owned, not named in sanctions list

Winnipeg's Buhler Industries, almost wholly Russian owned, not named in sanctions list

CBC
Saturday, February 26, 2022 06:28:42 AM UTC

Winnipeg-based, but almost entirely Russian-owned, farm machinery manufacturer Buhler Industries is not on Canada's sanctions list despite having on its board the leader of a Russian political party that supports President Vladimir Putin.

The news comes as the Ukrainian Congress of Canada calls on the federal government to ramp up sanctions against all Russian companies and assets.

"These sanctions haven't convinced Russia to stop its brutal assault on the Ukrainian people. Much more severe sanctions need to be implemented immediately," wrote Ihor Michalchyshyn, CEO of the UCC.

On Monday, Buhler Industries director Konstantin Babkin, who also leads Russia's Action Party, tweeted out support of  Putin's "decision to recognize the Donetsk and Luhansk People's Republics" — two separatist-controlled areas that are recognized by the international community as Ukrainian territory.

In 2014, Babkin publicly applauded Putin's actions that led to the current Russian occupation of Crimea

"We should not stop at Crimea," Babkin said in 2014. Many countries, including Canada, refuse to accept Russia's claim to Crimea.

Buhler Industries sent out a news release Thursday condemning the attack on Ukraine.

"The Russian Federation has invaded Ukraine. Buhler Industries is strongly opposed to this action and does not condone this attack," Buhler spokesperson Adam Reid wrote.

Combine Factory Rostselmash Ltd., an agriculture company based in Russia, upped its ownership stake in Buhler to 97 per cent from 80 per cent in late December with a $12-million share purchase from past chairman and CEO John Buhler's holding company. 

"Buhler Industries operates independently of Combine Factory Rostselmash Ltd. and has no comment on the actions or affiliations of the majority owners," Reid wrote in a text message to CBC News.

Despite being majority-owned by a Russian company, Buhler's spokesperson says it's "not a Russian company."

"Buhler Industries operates with autonomy; our staff is Canadian and American, the head office is in Winnipeg, Manitoba, and company direction and decisions are made in Canada," Reid wrote in the release. 

According to the latest Manitoba corporation registry records, Babkin lists an address in Moscow, while board chair Dmitry Udras, CEO Yury Ryazanov and director Oleg Gorbunov also list Russian addresses in their corporate filings. 

Buhler Industries has not exported products to Russia since 2019, and no longer does business in the region, according to Reid.

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