Russia and two other main grain producers of the CIS region, Ukraine and Kazakhstan have finally agreed to establish a so-called grain pool and jointly promote its grain in the global market, according to the reports by local media.
“In six months all the procedures for establishing a grain pool between Ukraine, Russia and Kazakhstan will be completed” – said Prime Minister of Ukraine Mykola Azarov after the meeting with his Russian colleague.
Experts note that together, the three countries will have control over around 20% of the world’s grain market. They will be able to defend its share even against their main competitor the United States, and expand its position at the expense of weaker competitors — Argentina, Australia, Brazil, and this is the main reason for the creating of such pool.
“Ministers have finally been able to form common approaches. I hope that we will be able to move forward, as our countries are the leading exporters of grain in the world. Creating of logistics chains between the two countries is also important” – added Russian Prime Minister Dmitry Medvedev.
In the future, the pool will enable the working out of standard trade rules and to implement a common, coordinated policy of grain exports, whose total potential is over 70 million tonnes.
The member countries anticipate increasing grain production in 10–15 years to a total of 225–250 million tonnes, including approximately 90–110 million tonnes of wheat, according to the estimations of the experts of Eurasia Economic Commission.