China Now Accepting All Imported Russian Wheat

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Exports set to rise to 1 million tonnes by 2023 

Russia has negotiated a new agreement to export grown across the country to China, in an agri-trade deal that considerably boosts Russian exports. The previously deal only allowed seven Russian regions, excluding the largest growing areas to export to China. Shipments had been limited because of China’s concerns about the dwarf bunt fungus in parts of Russia.

Russia has long wanted to boost agricultural exports to China, and has signed deals to export poultry while also providing hi-speed trains carrying produce. Last week’s agreement gives Russia the opportunity of boosting Chinese exports to a market that has become one of the top global importers.

Russian grain potentially could win some market share from the West in Chinese markets, so it could look beneficial for politicians in both countries. China wishes to lessen dependence on Western imports while Russia faces sanctions and is looking east to new export markets.

The two countries are continuing to work on potential trade opportunities, including in other agricultural products such as vegetables. Peas are to be allowed to enter the China market later in 2022. China and Russia signed off a Free Trade deal via the Eurasian Economic Union in 2018, however tariff reduction negotiations are proving difficult to pin down.

Russian wheat exports to China won’t automatically kick in, as test deliveries will take priority this year, according to Eduard Zernin, CEO of the Russian Union of Grain Exporters.

“Large-scale deliveries may begin in the 2022/2023 season, where we can expect a volume of at least 1 million tonnes, with the prospect of higher volumes as trade relations develop,” he said.

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