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The export of Russian goods to China is rapidly growing, but there is one exceptional situation - wheat. This is reported in an article published by RBC, citing Bloomberg.
China's expenses on purchasing Russian electricity and aluminum have sharply increased due to the reduction of supplies from the West. However, despite the growth in grain imports in China, wheat shipments remain at the same level.
The total volume of wheat imports in China increased by more than 60% compared to last year, reaching around 6 million tons during the first four months of this year. However, out of this quantity, Russia supplied only 30 thousand tons (0.5%), the publication claims. The largest exporter of wheat to China is Australia (59.7%), followed by Canada (18.3%).
Obstacles to the import of Russian grain, according to Bloomberg, include strict phytosanitary rules and transportation difficulties.
Market participants confirm this information. "Despite the high potential, Russian grain supplies to China still remain at a rudimentary level. This season, we have delivered slightly over 600 thousand tons of grain through cross-border trade. Indeed, massive shipments are limited by phytosanitary restrictions imposed by China," stated Eduard Zernin, Chairman of the Grain Exporters Union, to RBC.
Deputy Director of Petrohleb-Kuban company Dmitry Volobuev confirmed this fact, expressing his position, which was published by the Grain Exporters Union in their Telegram channel. He noted that opportunities through land routes are limited due to the low population density in northern China. When it comes to maritime transportation, logistics are hindered by the large distances between Russia's main export ports and China. "Transporting grain from Russia to China is only possible through southern ports due to the long distances, but overland sales are not economically feasible," Volobuev pointed out.
In February of last year, China allowed the import of wheat from all regions of Russia. Previously, only seven Russian regions were included in the list of suppliers - Altai Territory, Krasnoyarsk Territory, Chelyabinsk, Omsk, Novosibirsk, Amur, and Kurgan Region. The decision was made after a visit by President Vladimir Putin to China.
