Russia's UGC concludes contracts to supply grain to Turkey for 3 bln rubles

MOSCOW. July 6 (Interfax) - Russia's United Grain Company (UGC) has concluded contracts to supply grain to Turkey for 3 billion rubles with payment in rubles, UGC General Director Dmitry Sergeev said during a meeting with Russian President Vladimir Putin on Wednesday.

"We are still actively transitioning to payments in national currency with our partners from friendly countries at the moment. For instance, we have already concluded several contracts with our Turkish partners, the last of which was in March of this year, payment will be in rubles, and the overall amount will be 3 billion rubles," Sergeev said.

UGC exported almost 3 million tonnes of grain in 2021, with Egypt being the company's main market, Sergeev said. "We've been number one among Russian exporters for two agricultural seasons, exporting 1.5 million tonnes of wheat," he said.

"The main area that we're striving toward is fully getting rid of the mediation of international traders and working with import countries directly," Sergeev said.

UGC Group is a trade and logistics operator of agricultural products, the only Russian infrastructure company with government involvement on the agricultural products market. Among the group's assets are nine elevators with an overall storage capacity of 720,000 tonnes, three processing enterprises with a capacity of 490,000 tonnes per year, and two port terminal with a total transshipment capacity of 7.8 million tonnes per year, including PJSC Novorossiysk Grain Plant .

The group is owned by the state at 50% plus one share and Demetra Holding at 50% minus one share.

UGC Group is one of Russia's five largest exporters of grain.