WTF.
Export Development Canada backs loan to primarily Russian-owned Buhler Industries.
March 9, 2022
Export Development Canada — a federal Crown credit corporation — signed a guarantee to back half of a $14-million loan to Buhler Industries in December 2020 to support the company's ongoing operations.
The Winnipeg-based manufacturer of farming equipment, including Versatile tractors, has been under scrutiny since Konstantin Babkin, who resigned as a Buhler director on March 2, made at least two public statements in support of Russia's invasion of Ukraine.
In a Feb. 27 Russian language interview on CGTN, a Chinese state-owned broadcaster, Babkin blamed the Russian attack on U.S. interference and said "it is necessary to stop the conflict, to build a unified economic space with Russia."
Babkin also leads the Action Party, a Russian political party that has supported Russian President Vladimir Putin. On Feb. 21, Babkin tweeted out the party's 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.
Buhler spokesperson and vice-president Adam Reid, who has taken on Babkin's director role, stressed his company "is completely independent of Combine Factory Rostselmash, which has not collected profits or dividends from Buhler Industries in any way since acquiring a majority share in the company in 2007."
Buhler exports more than $150 million worth of machinery and parts each year, predominantly to the United States. That accounts for about 60 per cent of the company's total sales, according to Reid.
The last dividend distribution at Buhler was in 2007, although the heavy machinery manufacturer has seen profitable years since then.
Udras and Ryazanov, who are Russian nationals, were on the federal council of the Babkin-led Action Party, according to the party's website.
Export Development Canada — a federal export credit agency with a mandate to support international trade — says it applies additional scrutiny to agreements when Russia is involved.
The agency says it backed the Buhler Industries loan to promote Canadian agriculture equipment exports and create domestic jobs.
Buhler Industries says pulling out of the loan could have a huge impact on workers, farm equipment dealers and farmers who count on the company for spare parts.
"Consequences of the removal/cancellation of the loan could include staff layoffs of Canadian jobs, less investment in research and development, liquidation of inventory and property, a decrease in sales and inventory and a reduction in competitiveness as a result of lower volumes," said Reid.
Reid says Buhler Industries employs approximately 700 workers in Canada and 50 in the United States, which amounts to more than $50 million in jobs and taxes.
Joanne Levasseur - CBC News