RUSSIA- A Russian export company has recently inked a substantial deal to supply China with 70 million tonnes of grain, legumes, and oilseeds, according to a report by Reuters, underscoring the deepening economic ties between the two nations and their shared interests in the global agriculture market.

The Russian company behind this monumental agreement, EPT, has revealed that the contract spans 12 years, with the potential for extensions in the future, according to reports from Reuters.

Karen Hovsepyan, the leader of the New Land Grain Corridor Initiative, shared with the Tass news agency that the deal’s estimated value reaches nearly US$26 billion, emphasizing the substantial economic impact of this collaboration.

The strengthened alliance between Russia and China has been a noteworthy trend in recent years, and this week, Russian President Vladimir Putin is on an official visit to China, where discussions with Chinese President Xi Jinping will encompass trade and other pertinent issues.

Russia’s robust position in the global grain market has been further solidified by its remarkable grain harvest in recent years. During the 2022-23 marketing season, Russia exported an estimated 60 million tonnes of grain, while its invasion of Ukraine significantly impacted Ukrainian grain shipments. 

As a result, Russia has expanded its presence as the world’s leading wheat exporter, with an estimated 47 million tonnes of wheat exported in the 2022-23 season and a forecast to ship a record-breaking 50 million tonnes in the current marketing year.

Meanwhile, while striving for increased self-sufficiency in grains and oilseeds, China continues to be the largest importer of these agricultural products globally. This is especially true for soybeans and corn, reflecting China’s reliance on international markets to meet its growing demands for these essential commodities.

The agreement between Russia and China promises to strengthen their economic ties further and ensure a stable supply of key agricultural commodities. It is a testament to global trade’s dynamic and evolving landscape, where countries forge partnerships to address their agricultural needs and secure reliable sources of vital food resources.

Since the collapse of the Black Sea grain deal, Russian grain exports were significantly affected as many international traders ceased to operate from the country. 

To create new channels for these exports, Russia, Turkey, and Qatar were said to be preparing a grain export agreement to supply Russian grain primarily to African countries.

Citing correspondence between Ankara and Moscow officials, the German newspaper Bild reported that the emerging deal puts Türkiye in charge of the agreement’s organization, while Qatar will be the chief financial backer.