Russia: to completely embargo grain exports

Moscow / RU. (ami) Due to anomaly high temperatures and droughts in many regions of the Russian Federation, it is reasonably to forbid grain and other grain agricultural products exports from the territory of the Russian Federation, stated Vladimir Putin, the Prime Minister of Russia, on August 05.

Previously, Arkadiy Zlochevskiy, the President of Russian Grain Union, stated that the market of grains have many signals that grain exports will be closed beginning from August 10, but if the Government takes such decision, the market will be heavily damaged.

According to him, it is necessary to notify the market and give the possibility to exporters to fulfil the current contract obligations. Several Russian companies won the Egyptian tenders for grain supplies, and their fulfilment is under the challenge also. Besides, Zlochevskiy noticed that Russian reputation as valid grain supplier will possibly suffer from such violent decision.

According to the Head of the Grain Union, before arranging such measures, the Government should provide the lag for fulfilment the current contract obligations.

At the same time, Yurij Ognev, the Head of the large-scale Russian grain exporter, the General Director of International Grain Company, expressed oneself in favour of grain export embargo in order to decrease the price panics which emerged on the market.

On August 05, Dmitry Peskov, the Press-Secretary of the Chairman of the Government of the Russian Federation, explained that the established temporary embargo for Russian grain exports will last from August 15 to December 01, 2010 (source: agrimarket.info).