September 15, 2010

Ukraine to profit from Russia's grain ban

Ukraine expects to benefit from Russia's decision to pull out of the grain market for the rest of the year.

A scorching summer heat wave and a lack of rain forced Moscow to halt grain exports for the rest of the year to secure the domestic supply.

Volodymyr Klymenko, the president of Ukraine's grain association, said his country expected to reap the benefits from the Russian export ban. "The fact that Russia has left the markets means that, through a rise in world prices, we can sell our products more profitably," he said.

"We still cannot close the gap left after the introduction of a ban on exports from Russia because Russia planned to sell 18 million tonnes of wheat," he said.

Grain prices spiked in August after Kiev said it was considering a quota for grain exports. Klymenko said that nonetheless, Ukraine estimated its grain export potential for the year at 15 million tonnes.