Russia could become top grain exporter, says Minister

Russia could become one of the world's top three grain exporters within five years, Russia's Agricultural Minister Alexei Gordeyev has been reported as saying.

The announcement, reported in Interfax wire service news, came as the Moscow Stock Exchange began regular trading of agricultural products on 7 April.

Although rises of grain prices are slowing down, they are still at record levels due to volatility on international financial stock exchanges and because demand still exceeds supplies. The announcement could change this situation as Russia's policy could influence international grain prices.

Gordeyev told reporters that, "the country's objective is not only to meet Russia's internal needs but also to become a key exporter of grains".

At a meeting with representatives of 19 foreign embassies in Moscow in December 2007, Gordeyev had announced that Russia was likely to impose additional restrictions on grain exports if Russia's exports exceeded 13 million tonnes by February, Russia Today reported. This policy was aimed at stabilising the cost of bread on the domestic market.

However, the Agriculture minister had promised to lift export restrictions as soon as the situation on the domestic market was stable again.

According to Russian Today, grain export tariffs rises from 10 to 40 per cent in January 2008.