On February 24, 2022, Russia initiated a military invasion of Ukraine. Ukraine is a key international grain originating region and is also the world’s largest supplier of sun seed and sun oil; commodities which cannot be completely replaced from other origins. As a result of the invasion, Bunge temporarily idled its Ukrainian operations, comprising two oilseed crushing facilities in Mykolaiv and Dnipropetrovsk, a grain export terminal in the Mykolaiv commercial seaport, numerous grain elevators, and an office in Kiev. The Company also operates a corn milling facility in Ukraine via a joint venture.

As a result of the Ukraine-Russia war (the "war"), Bunge’s Mykolaiv port facility sustained damage on three separate occasions: March 22, June 22, and July 1, 2022. In each of these instances, based on initial visual inspections, there did not appear to be material physical damage to the Mykolaiv port facility, the adjacent Oilseed crush plant, or any other facilities. However, thorough onsite, physical inspections of the damage to the Mykolaiv facility, or potential damage to other Bunge facilities, resulting from the two most recent incidents have not been possible due to safety concerns.

Beginning late March, Bunge restarted certain commercial and operational activities in Ukraine, as well as certain rail, truck and barge exports from Ukraine. Such activities have increased during recent months but remain limited, and the activities are performed only where and when the ability to do so safely exists. Furthermore, the ability to continue these activities is unknown.

The Company’s Ukrainian operations employ over 1,000 employees. While as of the date of this report, to the Company's knowledge, there have been no reported casualties or injuries to Bunge employees, some of the Company’s Ukrainian employees have been forced to relocate to other countries or elsewhere within Ukraine. The safety of Bunge's employees is Bunge’s top priority; the Company is actively providing support and resources to employees and their families who have been impacted by these events, and Bunge employees in neighboring countries have mobilized to provide accommodation, food, clothing, toys and other supplies for displaced colleagues and their families. Bunge is also committed to supporting humanitarian efforts in Ukraine and has provided over $2 million in food products and monetary assistance to multiple relief organizations helping the people of Ukraine.

In response to Russia's invasion of Ukraine, the United States, other North Atlantic Treaty Organization ("NATO") member states, as well as non-member states, have announced targeted economic sanctions on Russia, certain Russian citizens and enterprises. Any continuation or escalation of the war may trigger additional economic and other sanctions. The scope or extent of potential additional sanctions, and the related impact on Bunge is unknown, as of the date of this report.

The Company has scaled back its Russian grain trading activities in recent years, including via the sale of its Rostov grain export terminal in 2021. The Company continues to operate its oilseed crush plant in Voronezh, in southwest Russia, doing so in compliance with legal requirements imposed following the start of the war. From a humanitarian standpoint, this plant is important to the local food supply as it provides essential food-related products to the Russian population. Certain companies have experienced negative reactions from their investors, employees, customers, or other stakeholders as a result of their action or inaction related to the war between Russia and Ukraine. The Company therefore continues to monitor the reactions of its investors, employees, customers, and other stakeholders and, as of the date of this report, has neither experienced any material financial impacts nor suffered from the loss of key customers or employees as a result of its continued operations in Russia.

The scope and intensity of the war continues to evolve. Bunge is closely monitoring the evolving situation and currently maintains control over all material operations and facilities in Ukraine. The condensed consolidated balance sheet and related discussion below provides information on the Company’s major classes of assets and liabilities in Ukraine as of June 30, 2022. As of June 30, 2022, the total assets and total liabilities associated with Bunge’s Ukrainian subsidiaries comprise approximately 1% of Bunge’s consolidated total assets and total liabilities, respectively.

Due to the nature of the war and its rapidly shifting areas of active combat, it is currently not possible to obtain all information necessary to determine all financial statement impacts. As such, the various financial statement impacts and related disclosures presented in these interim financial statements represent management’s best estimates considering the available facts and circumstances as of the date of this report.

The functional currency of Bunge’s Ukrainian subsidiaries is the U.S. dollar and the foreign exchange rates used to convert assets and liabilities denominated in Ukrainian hryvnia represent the official exchange rates published by the National Bank of Ukraine. Following the onset of the war, the Ukrainian government imposed restrictions on companies’ abilities to repatriate or otherwise remit cash from their Ukrainian-based operations to locations outside Ukraine. However, these restrictions are not expected to persist indefinitely as the Ukrainian government has eased certain restrictions surrounding the payment of international purchase invoices subsequent to June 30, 2022. The restrictions have not adversely impacted the Company's Ukrainian operations. Bunge is able to readily purchase U.S. dollars and other non-Ukrainian currencies onshore in Ukraine to pay for imports of goods and allowed services, where needed. Bunge is also able to sell foreign currency onshore in Ukraine. Bunge continues to exercise control of and consolidates its Ukrainian subsidiaries.


(US$ in millions)	June 30, 2022
Current assets:
Cash and cash equivalents	$	1
Trade accounts receivable (less allowances of zero)	5
Inventories	70
Other current assets	84
Total current assets	160
Property, plant and equipment, net	140



Other non-current assets	50
Total assets	$	350

Current liabilities:
Trade accounts payable and accrued liabilities	$	15
Short-term debt	218

Other current liabilities	3
Total current liabilities	236


Non-current liabilities	4

Total liabilities	$	240

Trade accounts receivable—As a result of the war, the risk characteristics of trade accounts receivable connected to Ukraine differ from those of the Company’s other trade accounts receivable, such that Ukrainian trade receivables may be at a higher risk of default. Additionally, as the scope, intensity, duration, escalation, and outcome of the ongoing war is uncertain, the Company has segregated its Ukrainian trade accounts receivables into a separate risk pool and incorporated an assessment of current and expected future adverse effects related to the war, including customer-specific factors such as their geographical location in relation to combat zones and operating conditions, when determining an allowance for credit losses in relation to such receivables. The assessment resulted in no significant change in recorded allowances for lifetime expected credit losses during the three and six month periods ended June 30, 2022, in relation to the Company's $5 million gross Ukrainian receivables balance at June 30, 2022.

Inventories—Bunge’s Ukrainian inventories generally comprise agricultural commodity inventories, primarily sunflower seeds, sunflower meal, sunflower oil, corn, and wheat. Due to their commodity characteristics, widely available markets, and international pricing mechanisms, such inventories are generally carried at fair value. However, as a result of the war, Bunge is neither able to immediately market its inventories located in Ukraine at internationally-quoted prices, nor make such inventories available for immediate delivery at such prices. Therefore, following the onset of the war, the Company has ceased recording its Ukrainian inventories at fair value and instead records all such inventories at the lower of cost or net realizable value, by product category.

As of June 30, 2022, the Company evaluated the recoverability of its inventories inside Ukraine considering the latest information available to management regarding: the current status of the war; expectations regarding the likelihood and timing of a potential peaceful resolution to the war; the physical location and condition of Bunge's inventories, including expectations regarding the timing of spoilage and the rate at which inventories can be transported from their current location to markets in other parts of Ukraine or exported to adjacent markets. As a result of this analysis, during the three and six months ended June 30, 2022 the Company wrote off $62 million and $71 million, respectively, of inventories physically located in occupied territories in Ukraine, or in difficult to access locations with high costs of recovery.

•Marketable securities and other short-term investments—Primarily comprise Ukrainian (“on-shore”) government debt securities, denominated in Ukrainian hryvnia. Bunge classifies these securities as “trading securities”, carried at fair value in the Company’s condensed consolidated balance sheet, with changes in fair value recorded in the Company’s condensed consolidated statements of income in the period in which they occur.

In addition to the marketable securities and other short-term investments belonging to Bunge’s Ukrainian subsidiaries, shown in the above balance sheet, certain of the Company’s non-Ukrainian subsidiaries hold certain U.S. dollar denominated, non-Ukrainian (“off-shore”) corporate debt securities of issuers with significant exposure to Ukraine. The values of these off-shore securities are directly impacted by the ongoing war. Such items, again reported within Other current assets as marketable securities and other short-term investments, totaled $15 million as of June 30, 2022.

As a result of the war, trading in the Ukrainian and Ukrainian-exposed debt securities has largely ceased. As such, at June 30, 2022, the prices of such securities were determined using pricing models with inputs based on similar securities adjusted to reflect management’s best estimate of the specific characteristics of the securities held by the Company. Such inputs represent a significant component of the fair value of the securities held by the Company, resulting in the securities being classified as Level 3 in the Company’s table of assets and liabilities accounted for at fair value on a recurring basis in Note 12 - Fair Value Measurements.

During the three and six months ended June 30, 2022, the Company recorded a combined $5 million and $69 million loss, respectively, on its “on-shore” and “off-shore” portfolios, within Other income (expense) – net, in the condensed consolidated statement of income, of which $37 million relates to securities still held at June 30, 2022.

• Recoverable taxes, net—Comprise $26 million in net value-added taxes paid upon the acquisition of property, plant and equipment, raw materials, taxable services, and other transactional taxes, recoverable in cash from the Ukrainian government. Bunge has continued to receive refunds of recoverable taxes from the Ukrainian government since the start of the war, including as recently as early June. Therefore, as of June 30, 2022, and during the three and six months then ended, Bunge has not recorded any change in allowances for recoverable taxes in Ukraine except for those associated with the Company's write-off of inventories, described above.

Property, plant, and equipment, net—As described above, following the onset of the war, Bunge temporarily idled its Ukrainian operations. However, beginning late March, Bunge restarted certain limited activities. On each of March 22, June 22, and July 1, 2022, Bunge’s Mykolaiv port facility sustained damage as a result of the war. In each of these instances, based on initial visual inspections, there did not appear to be material physical damage to the Mykolaiv port facility, the adjacent Oilseed crush plant, or any other facilities. However, thorough onsite physical inspections of the damage to the Mykolaiv facility, or potential damage to other Bunge facilities, resulting from the two most recent incidents have not been possible due to safety concerns. As such, significant judgments have been made in estimating the extent of any damage to the Company’s facilities in Ukraine. Accordingly, the Company has recorded impairment provisions of $1 million and $2 million in relation to such damage, within Cost of goods sold, during the three and six months ended June 30, 2022, respectively. The expense was recorded in the Company’s Agribusiness segment.

In light of the war, Bunge evaluated the recoverability of its Ukrainian property, plant and equipment using an income method based on forecasts of expected future cash flows attributable to the respective assets under a range of possible outcomes, including those with reduced or no future cash flows, and concluded that the Company's Ukrainian property, plant and equipment was recoverable. The recoverability tests depend on a number of significant estimates and assumptions, including the likelihood and timing of a potential peaceful resolution to the war, the availability and cost of raw material commodities and other inputs, as well as demand levels for products. During the second quarter, the Company revised these estimates and assumptions to reflect the latest available information pertaining to the likelihood and timing of resuming operations at its Ukrainian facilities, expectations around the size of future harvests in Ukraine, and related changes in the availability and costs of raw materials commodities and inputs. The Company believes these estimates and assumptions are reasonable, and the reported amounts are not highly sensitive to any individual assumption underlying the recoverability tests. However, future changes in the judgments, assumptions and estimates used in these recoverability tests could result in different conclusions regarding the recoverability of the Company's Ukrainian property, plant and equipment and may result in the need for the Company to record non-cash impairment charges of its Ukrainian property, plant and equipment at such time.

Other non-current assets—Comprises $26 million of deferred tax assets, $10 million of operating lease right-of-use assets associated with Bunge’s facilities, $7 million of recoverable taxes, net, expected to be realized in periods greater than twelve months from the balance sheet date, and $7 million of various other items.

The scope of current economic and other sanctions on Russia, certain Russian citizens and enterprises, as well as the nature and extent of potential additional sanctions, is uncertain. Bunge currently maintains control over all material operations and facilities in Russia. Bunge continues to monitor developments regarding the legal and operational environment in Russia together with their related impacts on the Company’s operations. During the three and six months ended June 30, 2022, the Company's Russian subsidiaries have not experienced any material financial statement impacts as a direct result of the war.

The condensed consolidated balance sheet below provides information on the Company’s major classes of assets and liabilities in Russia as of June 30, 2022. As of June 30, 2022, the total assets and total liabilities associated with Bunge’s Russian subsidiaries comprise less than 1% of Bunge’s consolidated total assets and total liabilities, respectively.

The functional currency of Bunge’s Russian subsidiaries is the Russian ruble (RUB) and the foreign exchange rates used to convert assets and liabilities denominated in Russian ruble represent the official exchange rates published by the Central Bank of the Russian Federation. Since the onset of the war, the Russian government has imposed restrictions on companies’ abilities to repatriate or otherwise remit cash from their Russian-based operations to various locations outside of Russia, including limiting capital repayments to non-Russian entities to RUB 10 million ($0.2 million) per month. However, Bunge remains able to readily purchase U.S. dollars and other non-Russian currencies onshore in Russia in order to make international payments for commercial contracts and is also readily able to exchange Russian rubles in international currency exchange markets. Bunge continues to exercise control of and consolidates its Russian subsidiaries.