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Kazakhstan, Russia discuss grain swap operations

Business Materials 23 April 2014 16:39 (UTC +04:00)

Astana, Kazakhstan, April 23

By Daniyar Mukhtarov - Trend:

Kazakhstan and Russia are discussing the issue of conducting grain swap operations to provide such a megapolis as Moscow with grain, Kazakh Minister of Agriculture Asylzhan Mamytbekov said at a press conference in the Central Communication Service under the president in Astana on April 22.

"Kazakhstan and the Russian Ministry of Agriculture are discussing the issue of conducting grain swap operations to provide Moscow with grain," he said.

The minister recalled that the population of the largest megapolis in Russia corresponds to the population of Kazakhstan (17 million people). Moscow's grain needs hit two million tons per year.

"At present, Moscow gets grain from the southern regions of Russia, Kuban," he added. "The shipping costs are high. The railway tariff is $ 30 per ton. It is more profitable for Kazakhstan to transport its grain up to Moscow and to make up these volumes of Russian grain in the Black Sea. Such swap operations will be possible within integration."

"The integration as part of the Eurasian Economic Union, which includes Russia, Kazakhstan and Belarus, will undoubtedly increase the export volumes of grain," he said.

"The unification of railway tariffs and trade costs within the Eurasian Economic Union will help Kazakh grain to be competitive in the ports of the Black and Baltic seas," he said. "This is an axiom that any integration will increase the trade turnover."

"Kazakhstan has not today set a goal to sell grain on the coasts of the Black and Baltic Seas," he said.

"Our strategic task is that we have optimized our sowing areas of wheat to ensure our own consumption and export to our traditional markets," he said.

The minister said that Kazakhstan plans to export seven million tons of grain in the current marketing year.

Translated by NH
Edited by CN

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