3 days ago
- Business
- Business Recorder
Russia aims to boost grains, vegoil exports to Iran
MOSCOW: Russia aims to boost grains and vegetable oil exports to Iran through the Caspian Sea in the coming months, thanks to an anticipated larger harvest this year and an end to trading restrictions, market analysts and traders said on Tuesday.
Trade between Russia and Iran, both heavily sanctioned by the West, grew by 16% to $4.8 billion last year. It primarily goes through the inland Caspian Sea, whose coastline is shared by Russia, Iran, Kazakhstan, Azerbaijan, and Turkmenistan.
'There is potential to increase our supplies of corn, barley, and sunflower oil to the Iranian market,' said Andrei Kucherov, head of agriculture at Reksoft, a consulting firm, partly owned by billionaire Vladimir Potanin's Interros holding. Igor Pavensky, chief analyst at rail carrier Rusagrotrans, said Iran could triple Russian wheat imports to 3-4 million tons in the coming season and boost corn and barley imports to 3.6 million tons from 2.6 million. Iran is the largest buyer of Russian corn and the second-largest buyer of Russian barley. After a pause due to a good harvest last year, Iran resumed wheat purchases from Russia in March, becoming the third-largest buyer in May.
'We are expecting a record sunflower seeds harvest this year. Corn, as well as barley and wheat, are in a good shape. So we have all the possibilities there (to increase supplies to Iran),' said Dmitry Rylko, head of IKAR consultancy.
Russian traders said Iran explored the pricing and availability of corn and barley from Russia over recent days. Afghanistan is also in talks with Russia to import certain foodstuffs, a minister told Reuters recently.
Russia is expecting to harvest 135 million tons of grain this year, including 90 million tons of wheat, compared with 130 million tons of grain and 83 million tons of wheat in 2024. Iran's harvest is expected to be lower this year due to drought.
