Russian Warning on Grain Export Curbs ‘Irrelevant,’ SovEcon Says

Andrei Sizov Jr., the managing director of SovEcon, a Moscow-based agricultural consultant, comments on Economy Minister Andrei Belousov’s warning that the government may consider grain export curbs. Deputy Prime Minister Arkady Dvorkovich was later cited by Interfax as saying there were no such plans.

Sizov spoke by phone today from Moscow.

“The exports situation won’t be changed. This is irrelevant information for exports.”

“The top authority in charge of agriculture in Russia is the Agriculture Ministry and Dvorkovich stays above it supervising the sector. They both said that while they are in power, there won’t be any export restrictions.”

“In principle, nothing has changed. As we expected, the most probable scenario is that grain exports will continue to diminish in size itself and there won’t be any government measures needed for that.”

“Russia’s wheat in the country’s European part is more expensive than wheat in Europe. Russian wheat prices on a free- on-board basis in Novorossiysk are $250 to $255 a metric ton now, while they are below $250 a ton in Europe.”

To contact the reporter on this story: Marina Sysoyeva in Moscow at msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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