EU restrictions on Russian grain shipments to hurt European market - Rosselkhoznadzor chief

MOSCOW. March 28 (Interfax) - The introduction of EU barrier duties on Russian wheat supplies will first and foremost hurt the European market and may lead to the loss of grain transshipment capacities, Rosselkhoznadzor head Sergei Dankvert told reporters, commenting on EU plans to impose a duty on wheat imports from Russia of 95 euros per tonne.

"First of all it will hit their market. The durum wheat that we produce is for their processing. This is Italy, Spain in the first place. It is extremely necessary," he said. "Of course, they can find it elsewhere, but it will be more expensive. Our grain is cheaper," he said.

Therefore what they are doing is reminiscent of "cutting off one's nose to spite one's face," Dankvert said.

It is not a problem for Russia to send to other markets those 2.5-3 million tonnes of grain that are exported to the EU. "The problem for them is that they can automatically lose port facilities. They have lost capacity for fertilizers, they will lose port capacity for grain," he said, noting at the same time that Russia has launched a new grain port in the Leningrad region. "Deliveries have begun, and very actively," the Rosselkhoznadzor chief said.

"We have no fear. And as far as markets are concerned, we have always sought their diversification in both imports and exports. We work effectively in other directions quite freely. And the diversification of markets, which we were forced into, is beneficial for us today," he said.

It is now important for Russia to increase sowing of those crops that are in demand, he said, for example, soybeans and corn. Dankvert believes that the Far Eastern regions are very promising in this respect.