CHS closes Ukrainian office due to war risks and shareholder caution

The American farming cooperative CHS is effectively ceasing its active activities in Ukraine. According to Latifundist.com’s sources, the company will leave only a small representative office after reducing most of its staff. Formally, CHS is not announcing its exit from the country, but in practice this means the end of its operational presence. The main reasons are military risks, conservative shareholder policies, and a delay in resuming exports through deep-sea ports.

The turning point for the company was 2023, when, after the liberation of sea routes by the Armed Forces of Ukraine, most traders returned to the Black Sea ports, and CHS remained on the Danube route and in Constanta, Romania. The decision of the cooperative’s Board of Directors did not give the “green light” to work with “big water”, which led to a loss of market positions. Export volumes decreased to less than 100 thousand tons, and the team in Ukraine, according to employees, “felt tied hand and foot.”

CHS has been operating in Ukraine since 2008, with a reputation as one of the most systemic players in the grain market. The company invested $30 million in the Olimpex terminal in Odessa, planned to export up to 4.5 million tons of grain per year, and even received support from the EBRD. In 2021, CHS Ukraine showed record results — more than 1.5 million tons of exports. However, after the war, trading moved to the Danube, and the company maintained only limited activity through partners.

Despite attempts to resume full-fledged work in 2025, CHS management in the US decided to reduce its presence in Ukraine. According to employees, in addition to the risks of the war, the decision was influenced by low margins in trading and the global trend towards cost optimization. “Cargill has laid off 8 thousand employees, ADM is cutting costs by hundreds of millions. Ukraine looks too risky in this context,” one of them explained.

Only a few employees will remain in Ukraine, performing basic market monitoring functions – prices, crops and litigation. The company retains a legal presence, but most of the team is already employed by other companies. “CHS is not formally closing, but for us it is the finale,” summarizes one former employee.

CHS is not the only international trader to reduce its presence in Ukraine. Earlier, a similar decision was made by Sierentz, which also exited the market due to high risks, a surplus of players and a decrease in profitability.

Tags: Ukraine, trading, CHS