PETALING JAYA: PPB Group Bhd
's 18.8%-owned associate, Wilmar International Ltd, is appealing against a Russian court order involving the state seizure of an indirect 24% stake in Russian oils and fats company, JSC Etalon.
The seizure stems from alleged anti-corruption law violations involving Rusagro founder Vadim Moshkovich (VM) for activities prior to 2023, although Wilmar said the matters were unrelated to the group.
Rusagro is Russia’s largest listed agricultural company, founded by VM in 2004. VM has denied the charges.
According to Wilmar, the Russian court appeared to have incorrectly treated the stake as being solely controlled by the Rusagro Group. In a filing with Bursa Malaysia, Wilmar said the 24% stake in Etalon is held through LLC Production and Commercial Firm Profit, which is fully owned by Cyprus-incorporated Sethal Holdings Ltd.
Prior to June 2023, Sethal was an indirect 51.8%-owned associated company of Wilmar, with investments in Russia’s oils and fats business dating back to 2008.
However, Wilmar’s interest in Sethal was diluted to 50% in June 2023 following the acquisition of the remaining stake by Ros Agro China Ltd (RACL), which is part of the Rusagro Group. Following the transaction, Profit became indirectly 50%-owned by Wilmar.
The group added that it subsequently entered into an agreement with RACL in 2024, granting Wilmar an option to acquire the remaining 50% economic interest in Sethal, as well as the right to appoint all directors of the company.
Wilmar said the carrying value of its investment in the profit group stood at US$310.9mil, compared with an initial investment of US$50.6mil. However, no contribution from the investment was recognised in its financial year 2025 financial statements.
The latest development comes as Wilmar is also facing legal and regulatory challenges in Indonesia tied to a high-profile crude palm oil (CPO) export permit corruption case dating back to 2022.
Indonesia’s Supreme Court had in late 2025 overturned an earlier acquittal involving several palm oil groups, including Wilmar, after prosecutors alleged judges had been bribed to deliver favourable rulings.
Earlier this year, a former Wilmar executive and two lawyers linked to the group were sentenced by an Indonesian court over a US$4mil bribery scheme tied to the case. Prosecutors alleged the payments were made to influence court decisions involving export permits issued during Indonesia’s cooking oil shortage in 2022.
Indonesian authorities have also seized 11.8 trillion rupiah (about US$725mil) from Wilmar Group as part of investigations into alleged irregularities involving palm oil export permits. Wilmar has said it acted in accordance with prevailing regulations and in good faith, while continuing to cooperate with investigations.
Separately, Indonesia’s widening land seizure and plantation review exercise has also raised concerns among regional plantation companies operating in the country, including Wilmar, amid heightened regulatory scrutiny over plantation licences and land use.
