MOSCOW – Russia, one of the world’s main wheat exporters, is taking steps to restrict grain exports in an attempt to cool domestic prices, as it tackles a financial crisis linked to plunging oil prices and Western sanctions.
In a meeting with grain exporters on Wednesday, Deputy Prime Minister Arkady Dvorkovich said the government was using all informal instruments to restrict grain exports, two sources familiar with the matter told Reuters.
Analysts say Russia is keen to avoid formal export curbs which might take time to implement and damage relations with its customers, but that it is stepping up other measures — such as quality controls — that can prevent grain leaving the country.
“At the meeting today, exporters were told that all instructions are given to all parties involved to restrict grain exports and that grain should be going now to the domestic market,” said Andrey Sizov, the head of SovEcon agriculture consultancy.
A Russian grain exporters’ lobby — the National Association of Exporters of Agricultural Products — earlier wrote to the government to complain that the country’s phytosanitary service was only allowing exports to Egypt, Turkey, India and Armenia.
