Leading exporters of Russian grain cease purchases for export (UPDATE)
Details added (first version posted on 12:53)
Baku, Azerbaijan, Dec. 19
The leading exporters of Russia's grain, the members of the National Association of Exporters of Agricultural Products, stopped purchases for export until the stabilization of the situation in the domestic market, Interfax agency reported citing the association's statement.
The document underscores that the members of the association share the concern of the government over the situation on the domestic grain market.
"Under these circumstances, and given the objective reasons not depending on the exporters, due to which the further execution of export contracts is not possible, as well as given the civic awareness and responsibility, the members of the National Association of Exporters of Agricultural Products - the grain exporters declare about cessation of grain purchases for export until the situation with grain supply and its prices in the domestic market is stabilized," the statement read.
The association members called on all the Russian exporters to join the action.
The restrictions on the Russian grain export began with, as the exporters say, elective actions of Russia's Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor), which issued certificates only for grain that is sent to Turkey, Egypt, Armenia and India.
Then a telegram came from the Russian Railways, which imposed restrictions on dispatching grain for export, on the basis of "the failure to discharge and receive wagons with grain" by the transportation addressees.
The restriction was imposed for an indefinite period.
Nevertheless, at a meeting of Russia's Deputy Prime Minister Arkady Dvorkovich with representatives of a number of major grain companies on Dec. 17, it was declared that there is no a de jure ban on grain export, but such measures can be taken if the situation in the grain market doesn't change within two or three weeks.
"The government's current task is to increase grain offers in the domestic market," the deputy prime minister's press secretary, Aliya Samigullina, told Interfax.
Earlier it was reported that the price of wheat in Russia rose over the season by 50 percent (in ruble ), despite the fact that the country this year had one of the biggest grain yields.
In this regard, the analysts predicted a swift rise in price of bread by 10 percent. At the same time, on the world market the price situation remained relatively stable.
On Dec. 18, the wheat price on world markets rose to a maximum of 29 weeks due to the fears that Russia will reduce exports.
Edited by SI