One of the largest grain traders Viterra intends to stop the export of Russian grain. Bloomberg writes about this, citing sources familiar with the situation. Earlier it became known that the Russian branch of the American corporation Cargill will stop exporting grain from Russia in the next agricultural year, which will begin on July 1, 2023. According to Bloomberg interlocutors, Viterra's departure will increase uncertainty about future crop exports from the Black Sea region. Viterra Rus declined to comment.
Andrey Sizov, director of the SovEcon Analytical Center, in an interview with The Insider noted that in the short term, the departure of these companies will not affect grain exports from Russia, but in the long term, the sector is degrading.
“The main problem is not the departure of companies, but export duties, which were introduced in 2021 even before all the hostilities. As a result, profitability is rapidly declining and we will see a gradual decline in production and exports in the coming years. The departure of companies is a much less important issue. Well, competition is reduced and, other things being equal, the agricultural producer receives a lower price.
I don’t remember, but both of them were the largest companies in Russia, they exported several million a year. Once upon a time, Viterra was No. 1, but in recent years it has ceased to be. She was one of the top five exporters.”
The expert added that, most likely, there will be some other company.
“The same traders, only they will be called differently. Some Russian company. The shares will simply go to other market participants,” says Sizov.