PARIS: Three of the world’s biggest grain distributors on Wednesday announced that they would exit from Russia by July, a step likely to reinforce Russian control over the global wheat market.
The companies said that government pressure and operational challenges in the wake of Russia’s conflict with Ukraine have made staying unfeasible for Cargill, Louis Dreyfus, and Viterra.
Until now, they had continued operations in Russia, including storage and transport via silos and port terminals, saying it was necessary for ensuring the supply of crucial commodities for nations worldwide.
Russia is largest grain exporter
Russia is the world’s biggest wheat exporter, and the grain was not hit by the raft of Western sanctions against it after its war against Ukraine started in February 2022.
But starting 1 July, the companies will only charter cargo vessels for agricultural shipments from Russia.
US big company Cargill is running only essential food and feed facilities in Russia; it said last Wednesday.
The statement added that, however, as grain export-related problems continue to mount, Cargill will halt elevating Russian grain for export in July this year after the completion of the 2022-2023 season.
Viterra followed suit a few days later, stating that the company had concluded that its operations in Russia no longer fit its long-term direction.
A company spokesperson said they were assessing options to transfer business and assets in Russia to new owners.
The Netherlands-based company Louis Dreyfus also said it was assessing options for the transfer to new owners of its business and grain assets in Russia.
