Moscow is confidently consolidating its dominant position in the wheat market, Bloomberg reports.
This has become possible due to the record harvest and low cost of production.
“At the moment the price is determined by Russia,” said Hélène Duflo, grain market analyst at Strategie Grains. Since Russian wheat has no competitors, Moscow is trying to set a minimum price threshold.
Such a measure will not only appease Russian farmers, who are dissatisfied with the reduction of income, but will also replenish the Kremlin’s coffers with additional tax revenues. In addition, it will allow the Russian Federation to take control of the global grain market, the author of the article believes.