VTB head doesn't expect 'harsh measures' in relation to foreign grain traders operating in Russia

MOSCOW. Nov 10 (Interfax) - VTB head Andrei Kostin does not expect "harsh measures" in relation to foreign grain traders operating in Russia under the current conditions, but believes that domestic companies need support.

"I don't think that there will be any harsh measures right now, but we expect in principle a program to develop our own companies," Kostin told journalists, noting that resolution of the issue is "underway."

Kostin sent a letter to the Russian president in September in which he proposed issuing a decree banning companies that belong to "individuals connected to unfriendly states" from concluding deals with grain and oilseeds within Russia for subsequent export. He also proposed banning firms connected to unfriendly states from owning stakes in Russian companies that transship and store grain.

"I understand that the Agriculture Ministry has taken a different position on this issue," Kostin said, noting that this is tied to this year's large harvest and the problems that traders are facing selling it. "Our interest is indirect," he said.

VTB co-owns Demetra-Holding, a grain holding company, at 45%.