Arnika LLC, a Vladivostok-based feed additives manufacturer currently in bankruptcy, can continue operating under certain conditions, though this will largely depend on the quality of the existing assets, according to local sources.
In 2021, Arnika LLC launched a production cluster in the Russian Far East for 21.1 billion roubles (approximately $270 million), which at full capacity was expected to house 10 units for the production of lysine monochloride, valine, tryptophan, as well as vitamins A, B, P, and D vitamins. In 2022, the company targeted to manufacture 10,000 tons of feed additives, Arnika LLC said, without providing additional details. Around 30% of the manufactured products were planned for exports to the Asia-Pacific, primarily Japan and South Korea.
In 2024, VTB, one of the largest Russian state-owned banks, initiated bankruptcy proceedings against Arnika LLC due to its failure to meet its debt obligations. The process is still ongoing, with new claims added to the register of creditors' claims in November 2025.
Providing that the Arnika LLC’s assets are in good condition, they will not stand idle, commented a source in the Russian feed industry who wished not to be named. The example of the Donbiotech plant, which was picked up by Roschem, shows that even problematic capacities can be revived and put into operation, the source said.
A lack of transparency from Arnika LLC management makes it difficult to forecast the future of its assets, commented Sergey Mikhnyuk, executive director of the Russian National Feed Union.
"To assess the project's prospects, it is necessary to carry out a comprehensive technical and financial audit first," Mikhnyuk said.
The Russian feed industry has long suspected that Arnika LLC had not established a full-cycle production operation but rather a semi-knocked-down instead, importing components to mix them at their plants, the source said. However, even in this case, the project can represent some value to potential investors, the source added.
A production cluster, such as Arnika LLC planned to establish, could be strong primarily thanks to access to a local raw material base, Mikhnyuk said, adding that such capacities enable an opportunity to export to Southeast Asia.
"Establishment of the full-cycle feed additive production [in the Russian Far East] is unlikely," Mikhnyuk said.