November 8 2004, 17:42

Russian Grain Union wants EU to increase grain import quota from Russia

Russian Grain Union (RZS) has directed a letter to Russia's PM Mikhail Fradkov, in which it requests the head of government "to order the relevant ministries and authoritative bodies to try to get from the European Commission a significant increase of the quota for Russian exporters [of grain]", Russian Information Agency "Novosti" has reported.

The letter further reads that in case that no positive results are achieved, Russian government should impose the same kind of limitations onto imports of grain and grain processing products, first of all - flour, rice, pasta and bakery goods, as well as meat and agricultural equipment, the analogues of which are produced in Russia, from the European Union, the RZS President Arkady Zlochevsky said to the agency.

By the decision of European Commission, the quota for Russia to supply wheat to the EU in 2004 is set at 1 million tonnes. However, the RZS officials believe that the minimal volume of export of milling wheat might be as large as 1.2 million tonnes, of feed wheat - 2 million tonnes. Besides, Russia can supply to the EU 1 million tonnes of feed barley.

Zlochevsky thinks that the European Union must demonstrate its openness by way of increasing the grain supplies quota for Russia.

According to him, the EU's unwillingness to increase the quota means economic and strategic losses for Russia.

"We are losing this market in Europe. This means that we will depart to Asian markets with our grain. Ukraine and Kazakhstan will come there too, and we will be fighting to death on this small battlefield, beating off each others' prices", he said.

"Being in a position to export 4 million tonnes of grain to EU countries, we have the quota 4 times smaller. Following this logic, Russia should retaliate and cut the European quotas for exports of meat to Russia", said Mr. Zlochevsky.