MOSCOW: Russia continues to responsibly and conscientiously fulfill its obligations under international contracts on export of agro-industr...
MOSCOW: Russia continues to responsibly and conscientiously fulfill its obligations under international contracts on export of agro-industrial complex goods, fertilizers and energy carriers, Russian Foreign Ministry Spokeswoman Maria Zakharova said.
"Our country continues to responsibly and conscientiously fulfill its obligations under international contracts in terms of exports of agro-industrial complex goods, fertilizers, energy carriers and other critical products. We are well aware of how important this is for the socio-economic development of the states of Asia, Africa, Latin America and the Middle East, for the health, life and well-being of the peoples of these countries," the diplomat wrote on her Telegram channel.
"This is being confirmed by the initiatives, presented by President Vladimir Putin on free handover of tens of thousands of tons of Russian fertilizer (arrested in European ports) and grain (25-50 thousand tons for Burkina Faso, Zimbabwe, Mali, Somali, CAR and Eritrea each)," the spokeswoman pointed out.
Zakharova pointed out that, after Russia withdrew from the Black Sea initiative, EU High Representative Josep Borrell "promised a global food crisis to the entire world," while European Commission President Ursula von der Leyen "called Russia’s rejection of the deal a 'cynical step.'"
"Meanwhile, the US envoy to the UN Linda Thomas-Greenfield went as far as calling Russia’s withdrawal an 'act of cruelty,'" the diplomat continued. "It is ridiculous that the main suppliers of weapons to the conflict area and the engineers of the coup in Ukraine talk about cruelty."
The diplomat also noted that the chief International Monetary Fund economist Pierre-Olivier Gourinchas promised a 15% grain price spike.
Actual situation
Zakharova pointed out how what the situation looks like in reality.
"Immediately after Russia’s statement regarding the cessation of the [grain] deal on July 17, market prices indeed grew insignificantly. However, in the following days, the price of a future contract for wheat returned to the previous level and, importantly, even fell by 1.13%, to $261 per ton. By August 21 this year, the wheat price stands at $253 per ton."
The world corn prices display a similar trend, the diplomat continued.
"On July 17 this year, the price for this culture decreased by 1.51% to $199 per ton. Its current stock price is $188 per ton," she explained.
"According to predictions of real experts (not politicized IMF specialists), grain prices in mid-term perspective may experience slight volatility due to the multitude of factors, but, according to the International Grains Council assessments, there are currently no global crisis phenomena in production and trade of grain," the spokeswoman said. "A rapid decrease of global prices compared to the previous season was registered: 35% decrease for wheat, 26% decrease for corn, 41% for barley."
Zakharova also pointed out the predictions saying that Russia will become one of the main suppliers of wheat in 2022-2023 with 45.5 million tons.
"Ukraine is expected to supply only 14.5 million tons (even less than Australia)," the diplomat added. "Experts from UK’s The Economist Intelligence Unit confirm this. They note that the wheat crop in Ukraine in this agricultural year will recede by 32% compared to 2021-2022 agricultural year - to 22.5 million tons. In 2023-2024 agricultural year, this figure will stand at 19 million tons, and the export volume will fall even further to 10 million tons."
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