December 17, 2012
Siberia's SAHO to ship Russian grain to Middle East, North Africa
SAHO, a Siberian grain producer has set up a joint venture with a Saudi investment company to ship Russian wheat and barley to the Middle East and North Africa.
The deal is a rare one between Russia and Saudi Arabia, which consumes about 15 million tonnes of grain per year. It was agreed by Metropol, a Russian domestic investment bank, as part of a debt restructuring of SAHO. The bank has an option to buy SAHO in the future.
Russia, with abundant farmland and fresh water, is seen as a natural target for Saudi investments aimed at food security, according to Reuters.
