Global commodities trader Cargill will stop exporting Russian grain in the new crop year, which starts on July 1, business daily RBK reported on Wednesday, citing a letter sent by the company to Russia’s Agriculture Ministry.
The Russian unit of the American corporation named “earlier discussions on grain export issues and the recommendations of the Agriculture Ministry” as the reason for halting exports, but stressed that the shipments planned for the current 2022/2023 exporting season will be made “in full compliance with the existing quota,” RBK writes.
According to the outlet, in the current export season Cargill’s share in the total export volume of Russian grain stands at around 4%, or 2.2 million tons.
The Russian subsidiary of Cargill has also begun to review of its portfolio of grain export-related assets, according to RBK.
Cargill’s agricultural supply chain activities in Russia include processing and distribution of grain and oilseeds for domestic and export markets. The company owns a river terminal that handles grain export and transit from various areas of Russia and Kazakhstan via ports on the Black Sea and the Sea of Azov, Cargill Russia’s website says.
The cessation of export activities by the US company will not affect the volume of Russian grain shipments abroad, Reuters reported on Wednesday.
“The company’s grain export assets will continue to operate regardless of who manages them,” the news agency quoted Russia’s Agriculture Ministry as saying.
Cargill stopped investing in Russia in March 2022 as part of international sanctions pressure on the country, but its local facilities continued to operate. RBK’s sources in the industry suggest Cargill decided to stop grain exports from Russia due to increased regulation of the market.
SOURCE: RUSSIA TODAY