Russia, one of the world’s largest grain producers, is using sanctions-related export disruptions to boost its reserves, according to the chairman of the country’s grain union on Monday.
Russia’s offensive in Ukraine, combined with Western sanctions, has disrupted deliveries of wheat and other commodities from the two countries, raising fears of global hunger.
Russia and Ukraine produce roughly one-third of the world’s wheat supply.
“Our stocks are nearly 20 percent higher than last year… Instead of supplying the world market, we are replenishing our own stocks,” Arkady Zlochevsky told a press conference.
He said Russia will have exported 36 million tonnes of wheat before June 30, about four million tonnes below its full export potential.
“All the information hysteria about the upcoming famine is actually only helping to drive up prices. It’s not the best game and it can end badly,” Zlochevsky said.
“When the hysteria is over… prices will simply crash,” he said.
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The Russian government had hinted that this season’s harvest could break a historic record, but Zlochevsky said the harvest could be closer to 120 million tonnes of grain (including 80 million tonnes of wheat) rather than the 130 million forecast by the agriculture ministry.
Zlochevsky said that only a “very small volume” of Russian wheat is destined for EU countries and Moscow’s deliveries do not transit via Europe but rather through the Middle East.
“We have very strong transit flows through Turkey and Iran… and they remain,” he said, adding that Iran this season became the second-largest buyer after Turkey, surpassing Egypt that for many years was a leading buyer of Russian wheat.
The West has accused Russia of using food commodities as a weapon in its military operation in Ukraine, as well as stealing Ukrainian grain from Russia-controlled territory.
Russia has denied these claims, claiming that if international sanctions against Moscow were lifted, it would establish export corridors in Ukraine and help prevent a global food crisis.
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