Russia says food bans to have no impact on grain exportsMoscow’s bans on various food imports from the U.S. and the European Union will have no impact on Russia’s grain exports, agriculture minister Nikolai Fyodorov said on Thursday.
By: Polina Devitt, Reuters
MOSCOW — Moscow’s bans on various food imports from the U.S. and the European Union will have no impact on Russia’s grain exports, agriculture minister Nikolai Fyodorov said on Thursday.
The potential for grain shipments from the Black Sea region to be disrupted by the crisis in Ukraine helped send wheat prices on the Chicago Board of Trade to a one-month high earlier this week.
Prices fell back, however, on Thursday with CBOT September wheat off 0.9 percent.
“I don’t think the sanctions have fundamentally changed anything. Russia is still competitive on the (wheat) export market and production looks likely to have exceeded expectations,” said Macquarie analyst Christopher Gadd.
Russia’s grain exports are expected to reach 25 million metric tonsin 2014 to ’15 marketing year, which started on July 1, Fyodorov told reported in Moscow on Thursday.
Exports in 2013 and 2014 were 25.4 million metric tons, with most grain shipped to the Middle East, Africa and Asian countries.
“These countries are friendly to us... That’s why everything is quite predictable for us on the grain market and grain exports,” Fyodorov said.
The largest buyers of Russian wheat in 2013 and 2014 (July/June) were Egypt, Turkey, Yemen and Iran. Turkey and South Korea were the most important markets for corn, while Saudi Arabia took more than half its barley exports.
Russia imposed the food import bans after the European Union and U.S. tightened sanctions linked to Moscow’s support for rebels in eastern Ukraine, targeting its energy, banking and defence sectors.