Three Leading Grain Exporters to Quit Russia by July

Three of the world's largest grain distributors have announced that they will pull out of Russia by July, a move likely to reinforce Moscow's control over the global wheat market.

Government pressure and operational difficulties in the wake of Russia's war against Ukraine have made staying in the country unfeasible for Cargill, Louis Dreyfus (LDC), and Viterra, the companies say.

Until now they had maintained operations in Russia including transport and storage via silos and port terminals, saying it was essential for ensuring the supply of crucial commodities for countries worldwide.

Russia is the world's largest wheat exporter, and the grain was not targeted by the raft of Western sanctions against Moscow after it launched its invasion in February 2022.

But starting July 1, the companies will only charter cargo ships for agricultural shipments from Russia.

U.S. giant Cargill is operating "only essential food and feed facilities" in the country, it said in a statement last Wednesday.

"However, as grain export-related challenges continue to mount, Cargill will stop elevating Russian grain for export in July 2023 after the completion of the 2022-2023 season."

Viterra, part of the Swiss-based commodities group Glencore, followed suit a few days later, saying it "has concluded that its activities in Russia no longer fit the long-term direction of the company."

"We are assessing options to transfer our business and assets in Russia to new owners," a spokesperson said.

https://www.themoscowtimes.com/2023/04/05/three-leading-grain-exporters-to-quit-russia-by-july-a80714