The third major grain trader is from Russia

The French agricultural trade giant Louis Dreyfus will stop exporting Russian grain from July 1, the company said in a statement, Reuters writes. Last week, similar decisions were announced by Cargill and Viterra, he writes forbes.ua.

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Key facts

• The company noted that it will stop grain exports from Russia from July 1, 2023, as problems with grain exports continue to grow in the country.
• Louis Dreyfus is also evaluating options for transferring existing Russian business and grain assets to new owners.
• In a statement, Russia's Ministry of Agriculture said it had received a notice from Louis Dreyfus Vostok to suspend export operations with Russian grain. The agency claims that this step will not affect the volume of Russian grain exports.

Context

The Russian division of the American corporation Cargill will stop exporting grain from Russia for the next agricultural year, which begins on July 1, writes RBC with reference to the company's message sent to the Ministry of Agriculture of the Russian Federation. The Russian agency received a notification from LLC "Cargill" about the termination of grain exports from the Russian Federation in the new agricultural contract (starting on July 1, 2023). It is noted that Cargill plans to abandon exports "in accordance with the discussion of grain export issues and the recommendations of the Ministry of Agriculture."

One of the world's largest grain traders, the company Viterra, will soon announce its exit from the Russian market, writes Bloomberg with reference to informed sources. This is the second top trader to leave the Russian market in recent days.

The decisions of Viterra and Cargill traders are related to the pressure from the Russian authorities and the reluctance to fall under sanctions due to cooperation with Russian banks and state companies. Earlier, the leading Russian producer of fertilizers "UralChem" informed President Vladimir Putin of its readiness to acquire the Russian assets of grain traders Cargill and Viterra.

The Russian authorities are constantly complicating the working conditions of foreign grain trading companies, in particular, by introducing new requirements for document management. The state is trying to increase control over the shipment of grain, and is also discussing the introduction of a minimum price level for wheat.

Archer-Daniels-Midland Co. (ADM) is also considering options for exiting its main operations in Russia, so it can add to the list of Western traders of agricultural products who refuse to work in the Russian Federation, writes Bloomberg.

Read also on Newsky "Already the second global trader has officially refused to trade in Russian grain" and look at "Boring Pence" YouTube channels.

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