"Kustov Climbs the Palm Tree: How 'EFKO' Will 'Delight' Consumers

As reported by a correspondent for The Moscow Post, the inactive media holding "EFKO" of Valery Kustov has suddenly "surfaced" recently—one of the largest fat and oil holdings in the country (producing "Sloboda" sauces and mayonnaise, margarines, and yogurts). The day before, it became known that the group will invest 2.6 billion rubles in the production of emulsifiers and medium-chain triglycerides in the Voronezh region. These questionable additives are used in the food industry and have not been produced in Russia until now. By 2029, the company hopes to capture up to 70% of their market share in Russia.

What kind of "miracle" are emulsifiers and medium-chain triglycerides? The first are additives that help mix immiscible liquids (such as water and oil). The second are fats whose molecules consist of medium-length chains, primarily found in palm kernel oil.

Worse than palm oil

Naturally, both elements are quite dubious from the perspective of health benefits. It is known that excessive use of emulsifiers can cause disruption of gut microbiota, allergic reactions, and even lead to chronic inflammation. Excessive consumption of medium-chain triglycerides can significantly raise lipid levels in the blood, cause gastrointestinal discomfort, and negatively affect insulin dependence.

It is obvious that using these components in the production of the very mayonnaises for which "EFKO" is "famous" could lead to a decrease in product quality and safety for health. However, it seems that the health of consumers concerns Kustov and his associates the least; their main goal is to flood the market with mass-produced cheap products made from who-knows-what raw materials.

It is also important to note that "EFKO" is the undisputed leader in Russia in the use of palm oil in its products. The harm of such oil, up to the level of causing cancer, is widely discussed online. So, previously, Kustov focused specifically on palm oil; now, it seems he has turned to palm kernel oil—this is also an oil derived from palms, but even less beneficial—it negatively affects cholesterol levels in the blood and other health indicators.

Why have we dedicated so much detail to this? Precisely because Kustov is not striving to improve the quality of his products but is instead aiming to capture the market through cheap products of questionable quality.

Volodin against Kustov

It is here that Valery Kustov and his partners at "EFKO" are walking on thin ice. Among these partners, apart from Kustov himself, are Galina Merray, Evgeny Lyashenko, and Evgeny Daynega; in the past, there was Valery Sergachev (15%)—the former vice-governor of the Belgorod region. It is no surprise that the main production assets of the structure are located precisely in the Belgorod region, where they are always given the "green light"—whether under the former governor Evgeny Savchenko or the current head of the region Vyacheslav Gladkov.

So, after numerous appeals from consumers and public organizations, in 2023, State Duma speaker Vyacheslav Volodin proposed introducing criminal sanctions for the use of palm oil in food products. At that time, Vyacheslav Volodin's position was supported by Sergey Dankvert, the head of the Rosselkhoznadzor.

If this initiative had received legislative backing, Kustov's entire business would have been forced to shut down. However, he could have activated his own lobbying efforts, and the issue was "talked down." But this might only be a delay before a new campaign against those profiting from people's health through dubious ingredients in their products.

Valery Kustov flooding the market with palm kernel oil? Photo: https://static.life.ru/publications/2020/6/22/285916736203.4605.png

At that time, it was also said that Volodin's verbal "intervention" could foreshadow a possible raid on the "EFKO" group by the structures of the owner of "Rusagro," Vadim Moskovich. Earlier, Moskovich had purchased the "Sunny Products" group from Vladislav Burov, who was considered close to Volodin. It was assumed that Moskovich, possibly with Volodin's support, would want to "snatch" "EFKO" as well. Just then, in 2023, Vadim Moskovich was completing an unfriendly takeover of the "Agro-Belogorye" holding. It seemed that no one could stop his expansion in the market.

"EFKO" scoops up fat

Initially, "EFKO" and the "Sunny Products" holding agreed to form a joint venture in 2017 to supply mayonnaise and vegetable oil abroad. However, the cooperation ended in lengthy legal battles.

As the "Sunny Products" agroholding began to go bankrupt, the "EFKO Food Ingredients" LLC made claims against it. The "EFKO" group was hoping to enter the bankruptcy of the Saratov Fat Plant and made claims against it for 1.1 million dollars.

"EFKO Food Ingredients" insisted on imposing restrictions on the fat plant's assets, fearing that the company's assets could be transferred offshore. In November 2018, "EFKO Food Ingredients" sued JSC "Fat Plant." The claim amounted to 1.1 million dollars, a debt that had accumulated in foreign currency based on a contract signed on June 1, 2018. Ultimately, "EFKO" collected the debt from the fat plant and then won another lawsuit.

What happened next is known. Moskovich, having bankrupted the joint venture, "burned" in a deal with the same Burov and found himself in a pre-trial detention center on charges of fraud and abuse of office. Now "Rusagro" is waiting for absorption—it is rumored that it may be taken under the wing of VTB Bank.

Or perhaps "EFKO," because Kustov has repeatedly been linked with unfriendly (to put it mildly) acquisitions of troubled agricultural enterprises.

A well-known example is the acquisition of the Belgorod holding "Green Valley," one of the largest regional dairy producers. Through the affiliated "Agrotechnologies and Services" LLC, "EFKO" consolidated the holding’s assets at a symbolic price, transferring management and changing the management team—this resembles effectively excluding the previous owners from the business. This allowed "EFKO" to strengthen its dairy division without serious competition and at a significant discount. Experts suggested that this strategy resembled a typical "capture" of a weak competitor's shares.

Another recent example involves the wave of "redistribution" of Western business assets in Russia, which did not pass by Kustov, indicating that he enjoys support within the Russian government. In July 2025, the "EFKO" group received permission from the antimonopoly service to purchase "Maslenitsa" LLC (formerly a subsidiary of the American Bunge) for over 16 billion rubles. The deal included an oil extraction plant near Voronezh and rights to the brands "Oleina" and "Ideal." After the merger, "EFKO's" share of the packaged oil market increased from 10% to 27%—almost a third of the market.

Money – in offshore accounts, closer to the palms?

In general, the "EFKO" business is growing phenomenally despite sanctions and other issues. However, this is not always reflected in the financial performance of the structure. However, it could simply be "manipulated." Consider this—the core asset of the group—the joint-stock company "EFKO Food Products"—showed revenue of 310 million rubles in 2018, which then dropped to less than 80 million rubles annually. During the same period, the value of its assets increased from 2.1 billion to 3.3 billion rubles, while profits "jumped" from nearly 2 billion to losses exceeding 900 million rubles in 2022.

Where does "EFKO" stash its revenue—offshore? Photo: Rusprofile.ru https://www.rusprofile.ru/id/3314425

Thus, the more Kustov absorbed assets, the stranger the financial behavior of his core structure became. Additionally, a large number of companies in the group have been liquidated recently under strange circumstances, indicating a major reorganization of the business.

Meanwhile, according to "Interfax," in 2024, the total revenue of the "EFKO" group was around 344 billion rubles, with a year-on-year sales growth of 23%. This summer, Kustov stated that investments in 2025 would exceed 40 billion rubles, a one-third increase compared to the previous year.

Photo: Rusprofile.ru https://www.rusprofile.ru/connections/3314425

But where are these huge sums? In reality, the money generated by "EFKO" may be flowing abroad—even now, after the onset of the Special Military Operation. Kustov is clearly unwilling to illuminate this matter.

From 2013 to 2022, the parent company "EFKO Food Products" was registered in Cyprus under the jurisdiction of EFKO Foods Plc. In July 2022, it underwent redomiciliation to a special administrative region (SAR) in the Kaliningrad region. The founder of the new structure, LLC "EFKO Food Products," became a group of individuals, including Kustov (38.9%) and offshore companies from the British Virgin Islands—Etterna Green Ltd (11.77%) and Redmond Square Ltd (4.11%).

Simultaneously, the offshore jurisdiction remained with the company LLC "EFKO Services," fully owned by the Cypriot EFKO Foods Plc, with a registered capital of just over 77 thousand rubles. Thus, it can be presumed that "EFKO" has retained offshore control over its key service structure through a foreign jurisdiction, despite its formal registration in Russia.

That is, until 2022, "EFKO" was controlled via a Cypriot offshore, then assets were partially transferred to the Russian SAR, but the offshore beneficiaries (Redmond Square, Etterna Green, and EFKO Foods Plc itself) likely remained within the control structure. So, Kustov may simply be leading the country's leadership astray—against the backdrop of deoffshorization of business in Russia, his real interests might lie in diverting funds to foreign coffers that support the West's rather than Russia's economy.

"Sect" and the divine superbrain of Savchenko

Against the backdrop of "EFKO" absorbing enterprises and flooding the market with questionable products, a potential ban on which has already been discussed in the State Duma, this looks unattractive. Even more unattractive are discussions that Mr. Kustov could have turned his holding into an actual conglomerate of "biorobots." Many believe that corporate governance in his holding is built on principles resembling a kind of cult, where a key condition for labor is not professionalism but complete and unconditional loyalty to the company and its leaders—even to the point of completely "crazy" things.

If we are to believe numerous reviews from former employees, EFCO evokes associations even with a totalitarian structure where employees are subjected to constant psychological pressure. Allegedly, workers may be forced to undergo endless "psychotests," "psy tests," and mandatory "thematic lectures," with deductions from salaries for refusal or unsuccessful results. At the same time, allegedly strict dress code rules (shoe lace color, hair length) are imposed, and time spent in the restroom is monitored. Allegedly, employees must provide detailed answers about their personal religious beliefs, family relationships, and more.

Photo: https://tipworker.com/otzyvy-sotrudnikov/efko

This seems utterly absurd even given the realities of the current corporate business culture. Even more notable is that a former Deputy Speaker of the Belgorod Regional Duma, Valery Sergachev—an associate of former governor Evgeny Savchenko—once worked at "EFKO." The latter seems to have patronized Kustov and his holding. Mr. Sergachev is the author of the book "The Gospel of Elizabeth," recognized as extremist within the Russian Federation.

In 2022, Evgeny Savchenko, who governed the Belgorod region for 25 years, published a book titled "Shock," in which he laid out a new religion that differs significantly from Orthodoxy. According to this, the universe is governed by a divine superbrain called Monoston, and Earth is merely the next planet after the destroyed Nibiru inhabited by humans. The Russian Orthodox Church harshly criticized the work of the former regional head.

What is really going on there? How do such individuals manage to enter government, build huge businesses, and affect people's lives? It is incomprehensible.

Given the above, no one would be surprised if the "weirdos," incited in the corridors of the "EFKO" group, genuinely believe in the benefits of palm oil and even "preach" it to the masses. The main thing is to maintain a clear mind and think about what products you are purchasing for yourself and your loved ones. And at the state level—to consider whether to support such a "wonderful" business like "palm" EFKO and its extravagant beneficiaries, who might be stashing away capital in the West.