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Imports of goods from Russia to China are increasing, except for one — wheat. This information was published in RBC, with a reference to Bloomberg.
China's purchases of electricity and aluminum from Russia have significantly increased, considering the reduction in supplies to the West. However, wheat deliveries are not increasing, despite the growth in grain imports in China.
The total volume of wheat imports to China has increased by more than 60% compared to last year, reaching around 6 million tons in the first four months of this year. From this volume, Russia supplied only 30 thousand tons (0.5%), according to the publication. Australia is the largest exporter to China (59.7%), followed by Canada (18.3%).
Bloomberg points out strict phytosanitary requirements and transportation difficulties as reasons for problems in grain imports to China.
Market participants confirm this information. "Despite the great potential, Russian grain deliveries to China are still limited. This season we supplied just over 600 thousand tons under cross-border trade. In reality, mass deliveries are hindered by China's existing phytosanitary restrictions," said Eduard Zernin, Chairman of the Grain Exporters Union.
Dmitry Volobuev, Deputy Director of the company "Petrokhleb-Kuban," whose comments were published by the Grain Exporters Union in their Telegram channel, notes that opportunities for selling grain to China are limited due to the low population density in northern China. One of the logistical challenges in transporting goods by sea is the long distance between Russia's main export ports and China. "Large volumes of grain from Russia to China can only be delivered through southern ports, as long distances do not provide economic benefits for selling goods overland," Volobuev stated.
In February of last year, Chinese authorities allowed the import of wheat from the entire territory of Russia. Previously, the list of suppliers only included seven regions of the Russian Federation — Altai and Krasnoyarsk territories, Chelyabinsk, Omsk, Novosibirsk, Amur, and Kurgan regions. The decision was made after President Vladimir Putin's visit to China.
