Russia Takes Advantage Of US-China Trade War To Expand Grain Export Potential
US losing its grain export markets as purchasers look to alternative Eurasian suppliers
Russian state-controlled bank VTB said on Thursday that it had completed its purchase of a 70% stake in local grain trader Mirogroup, expanding the lender’s diversification into the grain export business. This comes as China has been looking to Russia to purchase grains and soybeans from alternative markets as the US-China trade war deepens.
Russia is the world’s largest wheat exporter and the expansion of VTB, the country’s second-largest lender, in grain export infrastructure in recent months has been seen by some traders as a sign of the Russian government tightening the grip over the sector. Russia is also concerned about developing a food security policy against the US and wishes to be independent and a net exporter of grains and soya as the worlds largest market seek to isolate themselves from US trade given Washington DC’s recent strategy of using trade, including food, as a weapon. US Farmers that previously sold grain to China are now being bailed out by grants provided for by the US state. It remains unlikely they will see the China market return.
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