September 2, 2010

Wheat export from Russia to Armenia may resume

The Russian government's decision easing the ban on grain exports may enable Armenia to import some wheat from Russia, which has traditionally been a major wheat supplier to Armenia.

Noteworthy is the point that embargo does not apply to international agreements.

The embargo was imposed on August 15 and applied to previously signed contracts. The Russian government ordered shipment to be stopped irrespective of the contracts. A number of contracts with Armenian companies were cancelled as well. RA Minister of Agriculture Gerasim Alaverdyan expressed hope the contracts will be resumed.

Russia is a relatively new player in the world grain market. Over the last two years, it is the fourth largest exporter after the US, Canada, and the EU. Experts say Russia will find it difficult to regain its market positions if the embargo lasts too long and it should resume grain export as soon as possible.