Russia has announced a significant change in its grain export strategy, revealing plans to sell wheat directly to 13 countries, including Algeria. This move marks a departure from traditional practices, as Russia will bypass foreign intermediaries for the first time.
The countries included in this direct sales initiative are Algeria, Egypt, Tunisia, Morocco, Jordan, Saudi Arabia, Bangladesh, Qatar, Kuwait, South Korea, Pakistan, India, and Iraq. This new approach is set to take effect on October 11, 2024, with all transactions concluded before that date being completed through existing arrangements.
According to Edouard Zernine, chairman of the Russian Exporters Union, this decision aims to streamline the grain trade process and strengthen bilateral relations with the targeted countries. By eliminating intermediaries, Russia hopes to reduce costs, expedite deliveries, and gain greater control over the market.
This announcement has already sent ripples through the global wheat market, with futures contracts experiencing a decline. Analysts predict that the direct sales model could reshape the landscape of international grain trade.
Algeria, a major importer of Russian wheat, is expected to benefit significantly from this policy change. The country’s imports of Russian wheat have been estimated between 1.5 and 1.7 million tons since the beginning of the year.
This strategic shift aligns with Russia’s broader efforts to expand its economic influence and secure its position as a key player in the global agricultural market.
[Keywords: Russia, wheat, grain, export, Algeria, direct sales, international trade, agriculture, market, economy]
