American investors, led by John Patton's Argentem Creek Partners and co-lender Innovatus Capital Partners, secured a landmark victory by taking possession of one of Ukraine's largest grain export terminals in Odesa, demonstrating that American capitalism can thrive in a war-torn market and offering a blueprint for Ukraine's economic reconstruction without reliance on taxpayer-funded handouts.
The Olimpex Coupe Grain Terminal, renamed Lavanda Terminal under the ownership of Lavanda Spectrum, was won after a fierce legal battle. Patton, a partner at Argentem since its founding, hailed the triumph as "a good day for foreign investors and rule of law in Ukraine," emphasizing that the terminal will operate "transparently and profitably — paying taxes to the state and fair wages to its dedicated staff."
Argentem, with offices in New York and Abu Dhabi, specializes in high-stakes emerging markets like Ukraine, where risks are high but rewards can be substantial.
The terminal is a critical hub for exporting wheat, corn, oats, and other crops, vital to Ukraine's role as a global breadbasket. The Center for Strategic and International Studies reported that Ukraine accounts for up to 15% of global wheat and corn exports and nearly 50% of sunflower oil exports, feeding over 400 million people annually through Black Sea ports like Odesa.
Despite Russia's 2022 invasion disrupting exports, Ukraine maintained 80% of its pre-war grain export levels in 2023 via alternative routes, including Odesa's terminals, with 60% of exports reaching developing nations, underscoring their strategic importance to global food security.
Previously, the terminal was allegedly a hub for schemes involving tax evasion and inflated grain prices through supply manipulation. After Russia's invasion, former owners Volodymyr Naumenko and Serhiy Groza of GNT Group defaulted on a $95 million loan from Argentem and Innovatus, allegedly faking the destruction of grain used as collateral. Prosecutors linked this to a broader scheme costing Ukraine tax revenue needed for its war effort.
"We're on the verge of a reconstruction in Ukraine where there will be a requirement of lots of investment money," Patton said. "The rhetoric that Ukraine is too corrupt to invest in isn't right. We've proven it in a very clear way in this case."
The two-year legal fight included several twists. A Ukrainian court last year found that Groza and Naumenko had leased the terminal to an entity tied to a smuggler. The London Court of Arbitration in January ordered the pair to pay $150 million in outstanding debts, which Argentem is still pursuing. Naumenko was arrested in May for fraud and forgery linked to the disappearance of 100,000 tons of grain pledged as collateral.
Ukraine's Supreme Court on July 15 awarded Argentem one of the terminal's key assets by invalidating a fraudulent mortgage over that asset, a victory not only for the U.S. firms but also for President Volodymyr Zelenskyy, who seeks to prove Ukraine is open for business.
Patton credited President Donald Trump's pro-business administration, noting meetings with the U.S. Department of the Treasury.
"They're very much focused on making sure that American and allied businesses are treated fairly," Patton told Newsmax.
Lavanda Terminal is poised to resume operations, potentially by September, under new CEO Carl Sturen, a Swedish entrepreneur with three decades of investment experience in Ukraine.
"Attempts to defraud U.S. investors failed, and those culpable are out of business," Sturen said. "Ukraine has so much potential to attract investment, but it has to shake off the reputation that doing business in Ukraine is high risk due to fraud."
Ukraine's reconstruction, estimated at over $500 billion against its $200 billion GDP, demands private investment as government aid remains uncertain. Argentem's strategy — identifying undervalued assets and navigating tough environments — shows U.S. capital can generate wealth without handouts.
"A fully functioning Ukraine, using the rule of law where investors are protected, will enable more investment," Patton said.
Paul Bond has been a journalist for three decades, writing stories reporters in legacy media typically ignore. His work has primarily appeared in Newsweek, USA Today, Reuters, and The Hollywood Reporter. Follow him on X at: @WriterPaulBond
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