MOSCOW, August 25. /TASS/. The Union of Grain Exporters projects a 20% decrease in Russia’s wheat exports in July-August 2022 year-on-year, Chairman of the Union Eduard Zernin told TASS.
"According to our estimations, the lag in exports will be around 20% compared to last year, minus the EAEU," he said.
Russia exported 6.8 mln tonnes of wheat in July-August 2021, Zernin said. The decline in exports is due to several reasons. "Despite numerous statements made by Western regulators about the lack of sanctions against Russian food exports, we are still facing invisible barriers," the expert said, adding that it is still difficult to export from Russia from operational, logistics and financial standpoints.
Another reason is a sharp drop in prices continuing on the back of optimism connected with the opening of the grain corridor, which spells a potential increase in wheat supply on the global market and a record grain harvest in Russia that already leaves little doubt, he added. "Prices that crashed amid a still strong ruble bring into question the margins of exports," Zernin explained.
Whether exports will continue falling remains questionable due to two opposing factors, namely the a huge harvest, which increases export potential, and difficulties associated with the sanctions pressure on grain exports, he said.
"Russian grain is not overvalued, and we continue to sell with limited possibilities. The price is not the question. The latest piece of news is that Egypt’s GASC purchased 240,000 tonnes from Russian exporters without a tender. This indeed means that we remain competitive on the global market," the expert concluded.