Miller Magazine Issue: 155 November 2022

86 INTERVIEW MILLER / NOVEMBER 2022 The Russian Grain Union hosted an International Grain Trading Conference “Global Grain Outlook” on October 4-7, in Baku, Azerbaijan. Participants discussed the global changes in the structure of production and consumption of grain, developing new supply chains and creating new transport corridors. On the sidelines of the conference, Arkady Zlochevsky, the president of the Russian Grain Union, gave an exclu- sive interview for Miller Magazine. Zlochevsky answered our questions on grain markets, Russian wheat export, the Blacksea grain deal and the North-South grain corridor. Zlochevsky said that the increase in freight and insur- ance rates due to the sanctions imposed by the West on Russia has created obstacles in the export of Russian grain to world markets. Russia exported wheat to more than 40 countries in August 2021. However, this number decreased to 10 in June 2022. And half of the Russian wheat was shipped to only 4 countries in September. Zlochevsky underlined that alternative and competitive routes are needed for grain export. In this respect, he pointed out that the North-South corridor should be de- veloped and used more effectively with the cooperation of Russia, Azerbaijan, Kazakhstan and Iran. Could you give some information about the grain harvest season in Russia?  We had a record harvest this season. We’ve got a his- torical record of 150 million tons of grain, about 100 million of which is wheat. How sanctions have affected Russian grain exports? How is Russia’s wheat export pace since the conflict? As a matter of fact, there are no direct sanctions against Russian grain but they are much more related to the lo- gistic processes and shipment. It is hard to find ships for Russian grain and that has been reflected in dispropor- tion in the price patterns of the transportation. Certainly, the sanctions are quite painful to us. Although the capac- “The North-South corridor is strategically important for Russia. Russia aims to expand the sup- ply of its agrarian products to the Persian Gulf. This is a very important region in terms of Rus- sian agricultural exports. We are considering using the transit capabilities of Azerbaijan and access to the ports of Iran, including Bandar Abbas, to deliver our products to the countries of the world. This issue is in the range of our interests and will help expand the export potential of our food products.” Russia builds alternative route for grain exports Arkady Zlochevsky President Russian Grain Union