The Russian Grain Union told about the potential of wheat exports under sanctions

Russian grain has an export potential of 10.8 million tons, and the main buyers of such domestic products are the countries of the Middle East, the Persian Gulf, Africa and Southeast Asia, which have not imposed sanctions, Elena Tyurina, director of information and analytical support of the Russian Grain Union (RZS), told the editorial board of Made in Russia.

According to her, the market is now frozen in anticipation: shipments have almost halved, freight prices have risen, and traders are assessing the situation and possible risks.

However, Tyurina pointed out to a number of positive moments. For example, export of wheat and barley to China from all Russian regions has recently been allowed. Previously they could be supplied only from certain regions. The RZS expects this to enable the country to increase its grain supplies to China.

"The second point - our main buyers are the countries of the Middle East, the Persian Gulf, Africa, Southeast Asia, that is, these are the countries that do not impose sanctions against us, but there are certain difficulties, perhaps of a temporary nature, on grain shipments. Now the market is on pause. But according to my assessment, our grain export potential is about 10.8 million tons, including 6.3-6.5 million tons of wheat. We have export potential," she said.

Russia now has its own niches and its own regular customers, and, accordingly, the world market needs domestic grain, Tyurina said.

She said that in February, the daily shipment of wheat averaged about 80 thousand tons. However, since February 24, shipments fell to 40 thousand tons. During this time, wheat was supplied only by three companies and exclusively to Libya, Yemen and Turkey. These shipments could have been made under previously signed contracts, admitted Tyurina.

Moreover, since Thursday, according to RZS representative, prices on world markets have risen sharply: in France, wheat prices rose by 18%, and American wheat, by 15%. In Russia, prices rose less aggressively, by 8-10%. On the next day, February 25, the cost adjusted by about 27-30 dollars in all major world markets.

"Now we are on pause: while prices are being formed, the situation with assessments of various sanctions risks is taking shape. However, we have the potential and I think that exports will resume," concluded the expert.

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