March 20, 2012

Russia not to impose 2012 grain export embargo

Russia's First Deputy Prime Minister Viktor Zubkov said Monday (Mar 19) that the country has no plan to impose an embargo on grain export in 2012.

"It is very likely that this year we won't introduce any restrictions on the export of grain," Zubukov said during a meeting with Prime Minister Vladimir Putin, adding that the export volume would reach 27 million tonnes in 2012.

"Since the global grain prices are fairly high at the moment, this will have a favourable impact on the financial state of domestic farmers," the senior official said.

Earlier, the Russian government said it would adopt measures to limit its grain export if the export volume reaches 24 to 25 million tonnes. Russia is one of the world's largest grain exporters. It exports grain to some 84 countries.

In January, Russia's Agriculture Minister Yelena Skrynnik said the country would harvest at least 90 million tonnes of grain this year. Russia suspended its grain exports in August 2010 following a heat wave and droughts that destroyed crops in the majority of the country's agricultural regions. The country resumed grain exports in July 2011.