Russia to ban the export of grain and sugar until the end of summer

Russia will introduce a temporary ban on the export of grain crops to the EAEU countries and the export of white and cane sugar to any third countries. The corresponding decision was approved on Thursday by the subcommittee on customs-tariff and non-tariff regulation, protective measures in foreign trade of the government commission for economic development and integration, TASS reports with reference to the message of the Ministry of Economic Development.

Both measures will be in effect until August 31, 2022. Grain restrictions will affect wheat and meslin, rye, barley and corn. Export of sugar to the EAEU countries will be possible on the basis of permits issued by the Ministry of Agriculture, the agency notes.

“The decisions are aimed at ensuring the country’s food security and will help protect the domestic market in the current conditions. At the same time, there are still opportunities for cooperation with the EAEU countries,” the press service quotes a representative of the ministry as saying.

Restrictions on grain, according to the Ministry of Economic Development, will affect wheat and meslin, rye, barley and corn. At the same time, an exception will be provided for supplies under export licenses issued by the Ministry of Industry and Trade.

“According to the Ministry of Agriculture of Russia, at present, the grain supply in Russia exceeds 150%. At the same time, a temporary ban on exports will prevent the overflow of agricultural products, given that the EAEU countries have already made the necessary volumes of purchases this season in duty-free mode,” the message says.

The export of sugar will be banned with the proviso that deliveries to the EAEU countries will be possible on the basis of permits issued by the Ministry of Agriculture, the press service of the Ministry of Economic Development clarified.
In addition, during the meeting of the customs subcommission, it was decided to prepare proposals for consideration at the EEC site on the temporary zeroing of duties on a number of goods, including potatoes, onions, garlic, cabbage, carrots, cocoa and fruit purees, the press release notes. It was also decided to add a number of goods for children to this list, in particular, ready-made food products intended for young children and the basis for the production of breast milk substitutes. Ready-made proposals will be submitted to the EEC meeting on March 17.

In turn, the Ministry of Agriculture emphasized that today Russia is fully meeting its needs for basic food products. At the same time, the Russian Federation needs protection from the influence of negative factors in the context of instability in the global market, outstripping growth in demand and world food prices, the press service of the ministry reported.

“It is worth noting that since the beginning of the 2021/2022 season, the needs of the countries of the Eurasian Economic Union in Russian grain have been more than doubled. Together, the measures being developed and already being implemented by the government will ensure flexible regulation of the domestic market, eliminate the possibility of a shortage and an abrupt increase in prices raw materials and socially significant products,” the Ministry of Agriculture noted.