Miller Magazine Issue: 149 May 2022

92 INTERVIEW MILLER / MAY 2022 Eduard Zernin Chairman of the Russian Union of Grain Exporters RUSGRAIN UNION “Despite the humanitarian nature of grain supplies and its formal exclusion from the sanctions perimeter, we certainly felt their impact due to the extended interpretation. This is especially evident in financial services – insurance and payments. Russian ex- porters are doing everything possible to fulfill their contractual obligations and supply countries in need of our grain. We understand that there is simply no real replacement for Russian grain on the world market, despite the loud statements of some countries. We do not plan to stop exporting, despite today's difficulties.” ‘There is no real replacement for Russian grain on the world market’ Russia and Ukraine are significant producers and exporters of several commodities including wheat, corn and sunflower oil. Production or marketing developments in these countries have the potential to impact global grain markets. Russia pro- duces 11% of the world's wheat and Ukraine produces 3%. Two countries make up a larger proportion of global exports. Rus- sia accounts for 19% of the global wheat export market and Ukraine 9%. However, the war between two agricultural giants has disrupted agricultural exports from the region and creat- ed uncertainties about Black Sea supplies, further driving up commodity prices and increasing market volatility. As the conflict continues, Russia’s future exports are in doubt because of sanctions and uncertainties about whether its farmers will have access to seeds and other inputs. Agri- cultural products haven’t been directly targeted by sanctions on Russia so far. Yet, it is claimed that sanctions against Russia and the withdrawal of western commodity trading companies could reduce Russia's wheat exports. Russia produces close to 80 million metric tons of wheat a year and exports close to 30 million tons. What are Russia’s wheat export prospects in the 2022-23 season? How will the war affect Russian wheat export in the new season? How have the sanctions affected wheat exports so far? We asked these questions to Eduard Zernin, Chairman of the Russian Union of Grain Exporters. Russia is one of the world's grain market leaders. What do you expect this year and in the near future? Russia develops agriculture both extensively, by return- ing abandoned arable land to crop rotation, and intensive- ly, by increasing fertilizer application rates and developing seed breeding. Global climate changes favor us. The current situation with sanctions is unlikely to turn the tide. The agri- cultural sector in recent years, existing in the import substi- tution paradigm, has built a solid foundation for sustainable development. We are self-sufficient in grain and other crops