IKAR in Mass and Industry Media

Russian Grain Exports Seen Little Affected by Possible Sanctions

Bloomberg

Russian grain exports probably would be little affected by any future European Union or U.S. sanctions over Ukraine, according to market researcher Ikar.

The U.S. imports no grain from Russia, and the 28-member EU’s imports account for “less than 10 percent” of Russia’s foreign trade in grain, Dmitry Rylko, director at Ikar, the Moscow-based Institute for Agricultural Market Studies, said today by phone. Russia could easily reroute those shipments, which are mostly corn, he said.

“The likelihood of these kind of sanctions is negligibly small,” Rylko said. “If they cease purchases, we won’t notice.”

The U.S. Department of Agriculture expects Russia to rank as the world’s fifth-largest corn exporter this season ending Sept. 30, with sales of 3.5 million metric tons, the agency said May 9. Russia delivers corn to Spain, Italy, Germany and the Netherlands, Rylko said.

Russia will face “greater costs” if it undermines Ukraine’s May 25 presidential election, U.S. Vice President Joe Biden said today on a visit to Bucharest. Russian Prime Minister Dmitry Medvedev said this week his government has prepared retaliatory measures in response to possible wider U.S. and EU sanctions.

The U.S. and the EU have already penalized individuals and companies over Russia’s actions in Ukraine, and indicated industrywide sanctions may follow if Russia interferes in the planned election.

22.05.14

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