London | Reuters — Global grain trader Viterra’s management team in Russia plans to create an independent Russian grain exporter once the company ceases export activities in the country, the head of its Russian office, Nikolai Demyanov, told Reuters on Thursday.
Viterra — whose owners include mining and trading giant Glencore and the investment management firm for the Canada Pension Plan — has decided not to continue its origination and export programs out of Russia after July 1, it said in a statement.
“After this decision, our main task is to save jobs and support the remaining infrastructure. Management plans to continue its grain export business as a new independent Russian exporter, aiming to maintain the competitiveness of Russian grain on the global market and provide the most viable conditions for Russian producers,” Demyanov said.
Read Also
U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Russia is the world’s largest wheat exporter.
Viterra and sanctions-hit Russian lender VTB share ownership of a grain terminal in the Black Sea port of Taman. Viterra said on Thursday that it was assessing options to transfer its business and assets in Russia to new owners.
“The details and terms of further infrastructure deals are under discussion,” Demyanov said.
“Once all details have been agreed, Viterra’s shareholders and the buyers of the infrastructure assets will apply to the Russian government commission in charge of foreign investment for approval of the transactions.”
Viterra’s announcement comes a day after rival Cargill said it would take a further step back from the Russian grain market.
Russia’s agriculture ministry said in a separate statement that Viterra’s decision will not affect the amount of Russia’s grain exports.
— Reporting for Reuters by Polina Devitt, Sybille de La Hamaide and Olga Popova.
