Rusagro Group PJSC – Financial statements – 31 December 2025
Industry: agriculture
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
(in thousands of Russian Roubles, unless otherwise stated)
2.2 Critical accounting estimates and judgements in applying accounting policies (extract)
Fair value of livestock and agricultural produce
The fair value less estimated point-of-sale costs of livestock at the end of each reporting period is determined using the physiological characteristics of the animals, management expectations concerning the potential productivity and market prices of animals with similar characteristics. The fair value of the Group’s bearer livestock is determined by using valuation techniques, as there were no observable market prices near the reporting date for pigs of the same physical conditions, such as weight and age. The fair value of the bearer livestock was determined based on the expected quantity of remaining farrows for pigs and the market prices of the young animals. The fair value of mature animals is determined based on the expected cash flow from the sale of animals at the end of the production usage. The cash flow was calculated based on the actual prices of sales of culled animals from the Group’s entities to independent processing enterprises taking place near the reporting date, and the expected weight of the animals. Future cash flows were discounted to the reporting date at a current market-determined pre-tax rate. In the fair value calculation of the immature animals of bearer livestock management considered the expected culling rate.
Key inputs used in the fair value measurement of bearer livestock of the Group were as follows:
Should the key assumptions used in determination of fair value of bearer livestock have been 10 % higher/lower with all other variables held constant, the fair value of the bearer livestock as at the reporting dates would be higher or lower by the following amounts:
The fair value of consumable livestock (pigs) is determined based on the market prices multiplied by the livestock weight at the end of each reporting period, adjusted for the expected culling rates. The average market price of consumable pigs being the key input used in the fair value measurement was RUB 112 per kilogram, excluding VAT, as at 31 December 2025 (31 December 2024: RUB 126.3 per kilogram, excluding VAT).
Should the market prices used in determination of fair value of breeding livestock have been 10 % higher/lower with all other variables held constant, the fair value of the breeding livestock as at 31 December 2025 would be higher/lower by RUB 1,217,046 thousand (31 December 2024*: RUB 1,210,102 thousand).
The fair value less estimated point-of-sale costs for agricultural produce at the time of harvesting was calculated based on quantities of crops harvested and the prices on deals that took place in the region of location on or about the moment of harvesting and was adjusted for estimated point-of-sale costs at the time of harvesting.
The average market prices (Russian Roubles/tonne, excluding VAT) used for fair value measurement of harvested crops were as follows:
Should the market prices used in determination of fair value of harvested crops have been 10 % higher/lower with all other variables held constant, the fair value of the crops harvested in 2025 would be higher/lower by RUB 4,042,521 thousand (2024: RUB 3,731,597 thousand).
The fair value less estimated point-of-sale costs for unharvested crops are calculated based on expected yield, degree of readiness for each crop and the forward market prices.
The average forward market prices (Russian Roubles/tonne, excluding VAT) used for fair value measurement of unharvested crops were as follows:
Should the forward market prices used in determining the fair value of the unharvested crops have been 10 % higher/lower with all other variables held constant, the fair value of the unharvested crops would be higher/lower by RUB 144,971 thousand (2024: RUB 163,666 thousand).
2. Summary of significant accounting policies (extract)
2.7 Biological assets and agricultural produce
Biological assets of the Group consist of unharvested crops (grain crops, sugar beets and other plant crops) and pig livestock.
Livestock is measured at their fair value less estimated point-of-sale costs. Fair value at initial recognition is assumed to be approximated by the purchase price incurred. Point-of-sale costs include all costs that would be necessary to sell the assets. All the gains or losses arising from initial recognition of biological assets and from changes in fair-value-less-cost-to-sell of biological assets less the amounts of these gains or losses related to the realised biological assets are included in a separate line ‘Net gain / (loss) on revaluation of biological assets and agricultural produce’ above the gross profit line.
At the year-end unharvested crops are measured at fair value less estimated point-of-sale costs. A gain or loss from the changes in the fair value less estimated point-of-sale costs of unharvested crops less the amount of such gain or loss related to the realisation of agricultural products is included as a separate line ‘Net gain / (loss) on revaluation of biological assets and agricultural produce’ above the gross profit line.
Upon harvest, grain crops, sugar beets and other plant crops are included into inventory for further processing or for sale and are initially measured at their fair value less estimated point-of-sale costs at the time of harvesting. A gain or loss arising on initial recognition of agricultural produce at fair value less estimated point-of-sale costs of unharvested crops less the amount of such gain or loss related to the realisation of agricultural products is recognised in profit or loss in the period in which it arises.
Productive farm animals are classified as non-current assets in the consolidated statement of financial position; consumable farm animals and unharvested crops are classified as current assets.
9. Biological assets
The fair value of biological assets belongs to level 3 measurements in the fair value hierarchy. Pricing model is used as a valuation technique for biological assets fair value measurement. There were no changes in the valuation technique during the year ended 31 December 2025. The reconciliation of changes in biological assets between the beginning and the end of the year can be presented as follows:
Short-term biological assets
Long-term biological assets
In 2025, the aggregate gain on initial recognition of agricultural produce and from the change in fair value less estimated point-of-sale costs of biological assets amounted to RUB 693,513 thousand (2024*: RUB 6,657,663 thousand).
Included in the above amounts there are losses related to realised biological assets and agricultural produce amounting to RUB 897,312 thousand (2024*: RUB 13,441,981 thousand).
The amount of net loss on revaluation of biological assets and agricultural produce was recognised in the consolidated statement of profit or loss and other comprehensive income in 2025 in the amount of RUB 203,799 thousand (2024*: gain of RUB 6,784,318 thousand), which includes the aggregate income on initial recognition of agricultural produce in the amount of RUB 693,513 thousand (2024*: RUB 6,657,663 thousand) less losses related to realised biological assets and agricultural produce in the amount of RUB 897,312 thousand (2024*: loss of RUB 13,441,981 thousand).
Livestock population were as follows:
In 2025, total area of arable land amounted to 745 thousand ha (2024: 620 thousand ha).
The main crops of the Group’s agricultural production and output were as follows (in thousands of tonnes):
Key inputs in the fair value measurement of the livestock and the agricultural crops harvested together with sensitivity to reasonably possible changes in those inputs are disclosed in Note 2.2.
As at 31 December 2025, biological assets with a carrying amount of RUB 9,829,221 thousand (31 December 2024: 9,241,726 thousand) were pledged as collateral for the Group’s loans (Note 15).
18. Government grants
In 2025–2024, the Group obtained government grants for reimbursement of interest expenses on bank loans received for construction of the pig-breeding farms in the Far East and Tambov. The government grants related to interest expenses capitalised into the carrying value of assets, were similarly deferred and amortised on a straight-line basis over the expected lives of the related assets. The deferred government grants, related to capitalised interest expense, amounted to RUB 1,630,169 thousand (2024: RUB 2,419,393 thousand).
During 2024, the Group received government grants from the Belgorod regional government and the Federal government in form of partial compensation of the investments into purchase of equipment for agricultural business and sugar processing and the investments into reconstruction and modernisation of the pig-breeding farms and the slaughter house amounted to RUB 2,668,867 thousand. These grants are deferred and amortised on a straight-line basis over the expected lives of the related assets. The movement of deferred government grants in the consolidated statement of financial position is presented as follows:
Other bank loan interests, which had been refunded by the state, were credited to the consolidated statement of profit or loss and other comprehensive income and netted with the interest expense (Note 24).
Other government grants received are included in Note 23.
23. Other operating income, net (extract)
31. Financial risk management (extract)
Market risk (extract)
Sales price risk
Changes in white sugar prices are closely related to changes in world raw sugar prices. The storage facilities of own sugar plants permit to build up stocks of white sugar to defer sales to more favourable price periods.
The Group is exposed to financial risks arising from changes in meat and crops prices (Note 9).
Accounts examples 