The key consumers of Russian grain are ready to pay for it in rubles and yuan - VTB

ST. PETERSBURG. June 15 (Interfax) - Key consumers of Russian grain are ready to use rubles and yuan to pay for it, Vitaly Sergeichuk, head of corporate investment business at VTB , said at the St. Petersburg International Economic Forum.

"Business is looking for an opportunity to pay in local currencies, in rubles, in yuan. And we see that, from the point of view of demand, such opportunities are welcome. We see that key consumers, and these are Turkey, Egypt, and Iran, which account for about 50% of grain exports, are ready to use the ruble as a means of payment or switch to yuan as a means of payment," he said.

This allows us to look more optimistically into the future, he said. Under sanctions, the industry has opened up new markets. "Thus, grain exports to Algeria have quadrupled this season; exports to Bangladesh and Sudan have doubled. The country is the guarantor of the supply of a crop as important as wheat to the poorest countries of the south and east," he said.

Since the beginning of the season (from June 1, 2022), 52 million tonnes of grain have been exported, which is 42% more than in the previous season, Sergeichuk said.

"We expect prices and the cost of food production in the world to rise. This means that the poorest countries will once again experience the same difficulties that the UN and food organizations are trying to overcome. Our task is to provide opportunities for Russian agricultural producers to increase production," he said, noting that Russia has unique opportunities to increase the land bank involved in agriculture and the intensity of agriculture. "And, indeed, the export potential for the coming years can be doubled in terms of both grain and other crops. Our key partners, China and India, also have huge potential for growth in Russian food imports," Sergeichuk said.