August 13, 2010

Russian grain export ban creates challenges and opportunities for neighbouring countries

Russia's ban on grain exports could benefit Kazakhstan but hurt Turkmenistan, which may suffer shortages.

Kazakhstan might be able to sell grain to Egypt, which ordinarily imports half of its wheat from Russia, Daulet Uvashev, director for commercial matters of Kazakhstan's Prodkorporatsiya said. President Nursultan Nazarbayev has estimated the country's 2010 grain export potential at eight million tonnes, he added.

However, grain importer Turkmenistan could suffer shortages. Its government said the country harvested 1.4 million tonnes of grain this year, but annual consumption is estimated at 2.5 million tonnes. Turkmenistan imports Russian and Kazakhstani grain.

Russian Prime Minister Vladimir Putin imposed the ban - to expire at the end of 2010 - in response to wildfire devastation of grain crops.