How to Legally Make Millions on Hemp in Russia

Entrepreneurial Success in the Russian Hemp Industry

Andrey Kuzin, an entrepreneur from Nizhny Novgorod, shared how he managed to create a cannabis-based business in Russia and start earning money by processing industrial varieties of hemp. Today, his company’s revenue reaches up to 2 million rubles per month, and Kuzin predicts further growth for the industry.

Founding the “PK Konopel” Company

In 2015, Kuzin and a friend launched the company “PK Konopel,” investing 300,000 rubles. This money was spent on renting a facility, purchasing equipment, and buying the first batch of raw materials. The company initially produced oil from hemp seeds using a recipe from a Soviet agricultural encyclopedia. However, the product turned out to be low quality, so Andrey decided to switch to selling hemp seed kernels. Together with his partner, he separated the kernels from the shells and sold them to health food cafes and eco-stores. The monthly income reached 150,000 rubles, but this amount was only enough to cover rent and raw material costs.

Business Growth and Expansion

Kuzin’s partner left the business six months after the company was founded, and was replaced by Mikhail Kokotkin, who invested 1 million rubles for a 40% stake in “PK Konopel.” Andrey purchased a new oil press, which allowed the company to produce high-quality products. The business also expanded its product line:

• The company began selling hemp seed husks to fishermen at 100 rubles per kilogram (used as bait);
• They started producing protein from the cake left after pressing the seeds (2,190 rubles per kilogram).

In 2017, “PK Konopel” received an additional investment of 4.5 million rubles. The company bought new equipment and increased production capacity to 8 tons of oil per month. That year, Kuzin made arrangements with local farmers to plant hemp on their agricultural land, with the first harvest expected in fall 2019. The company supplies products to chain stores like “Gorod-Sad,” “Zelenaya Ulitsa,” “Jagannath,” as well as yoga studios and vegetarian cafes. In 2018, the company’s revenue doubled, reaching 1.5 to 2 million rubles per month, with monthly profits of 200,000 rubles.

Barriers to Hemp Industry Development in Russia

Dmitry Ilkov, founder of the company “Konoplektika,” stated that the development of the Russian cannabis industry faces three main obstacles:

• Imperfect legislation;
• Lack of knowledge among officials;
• No opportunities to promote products on the market.

According to Ilkov, media outlets and social networks refuse to advertise hemp products, fearing accusations of promoting drugs. Additionally, some regional government members and Ministry of Agriculture employees are unaware that cultivating industrial hemp varieties is legal in Russia. However, Alexander Smirnov, a specialist from the Agro-Industrial Association of Hemp Growers, remains optimistic. He believes the hemp sector will continue to develop because companies have started to turn a profit.