Russia to lift grain export ban from July 1

Russia to lift grain export ban from July 1

2011-05-28 19:38:00 GMT+7 (ICT)

MOSCOW (BNO NEWS) -- Russia will lift an embargo on grain exports from July 1, Prime Minister Vladimir Putin said on Saturday.

According to RIA Novosti, the export ban was imposed in August last year after a prolonged heat-wave and drought cut Russia's grain production by 37%. For the first time in the post-Soviet period, the government ban wheat, barley, rye, corn and flour exports.

"From July 1, we will lift the ban on grain exports," Vladimir Putin said at a meeting with his first deputy, Viktor Zubkov.

Russian authorities originally considered extending the ban, which had been due to expire last December, until September-October when they could assess the future harvesting results. Grain traders, however, opposed the ban, saying it would result in vast grain reserves accumulating in the south of the country and would make grain production less economically appealing.

"The grain market is now stable," Zubkov told Putin, adding that harvesting prospects were quite optimistic.

Zubkov said that southern Russia had sufficient grain reserves, which could begin to be exported already from July 1.

Russia was ranked the world's fourth largest grain exporter in the past several years, after the U.S., the EU and Canada.

In 2009, Russia exported 21.4 million metric tons of grain, with Egypt, Turkey, Pakistan, Azerbaijan, Syria, Jordan, Iran, Libya, Bangladesh and Yemen being the largest consumers.

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