Russian grain exports continue encountering 'invisible barriers' - Grain Exporters' Union

MOSCOW. Aug 25 (Interfax) - Grain exports from Russia, which are not officially subject to sanctions against Russia, continue to face "invisible barriers" that complicate supplies. Despite this, Russian grain still remains competitive, Eduard Zernin, head of the Union of Grain Exporters, told Interfax.

"Despite numerous statements by regulators from Western countries that there are no sanctions against food exports from Russia, we still face invisible barriers. It is still difficult to export Russian grain from operational, logistical and financial points of view," Zernin said.

Furthermore, exports are being restrained by the sharp drop in prices, "continuing on a wave of optimism associated with the opening of the 'grain corridor', which means a potential increase in the supply of wheat in the world market and what will doubtlessly be a record grain harvest in Russia," he said. "The plummeting prices against the backdrop of a strong ruble put export margins into question," the Union chief said.

In July-August, exports may decrease by 20%, not including supplies to EAEU countries, according to Zernin's forecast. During the same period last year, exports totaled 6.8 million tonnes.

At the same time, Zernin stressed that by developing relations with traditional major consumers, Russia remains competitive on the world grain market. "The other day Egypt's GASC purchased 240,000 tonnes of Russian wheat without a tender, which clearly demonstrates both compliance with quality specifications and compliance of our offerings with current world grain prices," he said.