June 10, 2009

Russia seeks to begin exporting wheat to Japan via shipping terminals slated for construction through alliances with Japanese trading companies, the Nikkei reported in its Wednesday (June 10) morning edition, citing Russian Agriculture Minister Elena Skrynnik.

Skrynnik supplied written responses to questions from The Nikkei, her first response to inquiries from foreign media since taking office in March.

According to Skrynnik, a handful of Russian agricultural firms are now in active negotiations with Sumitomo Corp., Sojitz Corp., Mitsubishi Corp. and Itochu Corp. for plans to construct shipping terminals on Russia's far eastern seaboard that would export goods to Japan and other parts of Asia.

Russian agribusiness OGO Group and Sojitz have already hammered out plans to build an export terminal at the Vostochny port, while a separate Russian company is pursuing a similar plan with Itochu, Skrynnik wrote.

According to sources familiar with the matter, each terminal is expected to be able to handle about 1 million tonnes a year. Their capacity could be increased further once operations pick up pace.

Japan currently imports about 5 million tonnes of wheat a year, primarily from North America and Australia, but almost none from Russia.

Skrynnik sees Japan as a promising market for Russia, emphasizing that her country would be able to export up to 1.5 million tonnes of high-quality wheat a year.

She also indicated that Russia strives to export its goods to China, Taiwan and other parts of Asia.