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Sanctions-hit Russia stockpiling grain | Fin24

Russia, one of the world’s best grain producers, is using export disruptions caused by sanctions to boost its reserves, the country’s grain union president said Monday.

Russia’s offensive in Ukraine and Western sanctions have disrupted supplies of wheat and other goods from the two countries, raising concerns about the risk of famine around the world.

Russia and Ukraine produce about a third of the world’s wheat supply.

“Our supplies are nearly 20 percent higher than last year … Instead of supplying the world market, we replenish our own supplies,” Arkady Zlochevsky told a news conference.

He said Russia would have exported 36 million tonnes of wheat by June 30, about four million tonnes below its full export potential.

“All the information hysteria about the coming famine really only helps to get prices up. It’s not the best game and it can end badly,” Zlochevsky said.

“When the hysteria is over … prices will just crash,” he said.

The Russian government had indicated that this season’s harvest could break a historical record, but Zlochevsky said the harvest could be closer to 120 million tons of grain (including 80 million tons of wheat) instead of the 130 million predicted by the Ministry of Agriculture.

Zlochevsky said that only a “very small volume” of Russian wheat is destined for EU countries and Moscow’s supplies do not go through Europe, but through the Middle East.

“We have very strong transit flows through Turkey and Iran … and they remain so,” he said, adding that Iran has become the second largest buyer to Turkey this season, convincing Egypt that it has been a leading buyer of Russian wheat for many years used to be.

The West has accused the Kremlin of using food as a weapon during its military operation in Ukraine and of stealing Ukrainian grain from Russia-controlled territories.

Russia has denied these claims, saying it would create export corridors in Ukraine and help prevent a global food crisis if international sanctions on Moscow are lifted.

Sanctions-hit Russia stockpiling grain | Fin24

Source link Sanctions-hit Russia stockpiling grain | Fin24

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