Russia increases its grain reserves by 20 %
Arkady Zlochevsky stated that Russia has increased its grain reserves by 20 % as a result of the sanctions imposed by the West
The president of Russia’s largest grain union, Arkady Zlochevsky, said his country has increased its grain reserves by 20 percent compared to last year as a result of sanctions imposed by Western countries.
“Our reserves are 20 % higher than last year… Instead of supplying the world market, we are filling our own reserves,” the trade unionist pointed out.
According to Zlochevsky, by June 30 Russia plans to export 36 million tons of wheat, some four million tons less than its export potential.
The war between Russia and Ukraine, both countries are responsible for producing a third of the world’s wheat, and the sanctions imposed by the United States and the European Union have caused a disruption in the delivery of “cereals and other basic products from these two countries, which raises fears of a global famine”.
Information campaign increased wheat prices
According to Arkady Zlochevsky, “All the news hysteria about an impending famine only pushed up prices. (…) When the hysteria ends, prices will simply plummet. It is not the best strategy, and it can end badly.”
The union representative believes that approximately 120 million tons of cereals will be harvested this year, of which 80 million tons correspond to wheat. However, the Russian Ministry of Agriculture had estimated 130 million tons.
In Zlochevsky’s opinion, the quantities of Russian wheat destined for the European Union are very small and deliveries are made through the Middle East. “We have very important transit flows through Turkey and Iran, and they continue”.
For many years, Egypt was Russia’s largest wheat importer, but was displaced by Turkey, which now ranks first, followed by Iran.
M. Rodríguez
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Source: bancaynegocios.com
