Russia plans to establish grain export quotas in the countries of the Eurasian Economic Union (EAEU) for the second half of the 2020-2021 agricultural season.

For example, the Russian agriculture ministry suggested that the EAEU should discuss a temporary restriction on grain exports from Armenia, Kazakhstan, Belarus and Kyrgyzstan.

This week, the Russian government announced the introduction of quotas on exports of wheat, meslin, barley and corn from February 15 to June 30 next year. Thus, 15 million tons of products can be sold abroad during this time.

According to media reports, the Ministry of Agriculture fears that the open borders with the EEU countries will only formally execute this order, so suppliers will be able to use them as a transit route.

The ministry argues that strong demand and record high cost of wheat around the world can leave flour milling, cereals, baking and meat and dairy industries without raw materials. This in turn will negatively affect businesses and end consumers.

The ministry expects that exports of 15 million tonnes is a sufficient amount for producers to make good money on overseas trade. Especially taking into account the constant rise in prices and the fact that grain can be exported without any restrictions until February 15.

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Author: Ksenia Gustova