OREANDA-NEWS. May 30, 2011. Vladimir Putin agreed to lift the grain export ban from July 1, 2011. He also instructed First Deputy Prime Minister Zubkov to provide every support possible to Russian agricultural producers through the difficult period of sowing and harvesting.

Transcript of the beginning of the meeting:
Vladimir Putin: My first question is traditional for this time of the year: how is the spring sowing campaign going?

Viktor Zubkov: Mr Putin, this year spring came 10 to 12 days later than usual, which did not disrupt the sowing campaign in the regions. Government measures to supply farms with seeds, fertiliser and fuel have been effective. Despite the delay, the spring sowing campaign is progressing much quicker than last year. About 24 million hectares have been sown, which is a 10% increase against the previous year. It is a good result. Winter crops are in a good state and there is every reason to hope that we will have a good grain harvest this year.

Vladimir Putin: I would like to discuss the grain export ban, which expires on July 1, 2011. Do you suggest extending or lifting the embargo?

Viktor Zubkov: The aim of the August 2010 export ban was to keep the Russian domestic market well supplied with grain in order to prevent sharp price rises for both agricultural producers and consumers. This applies both to feed grain and bread grain. I must say the government measures were effective. We have stabilised the market. Moreover, large amounts of grain from the south of Russia could begin to be exported from July 1. The current price of Russian grain is 5,200 to 5,400 roubles per tonne, which is 50% lower than world prices. I suggest lifting the embargo from July 1, as there is enough grain on the market, winter crops are in a good state and the spring sowing campaign is progressing at a good pace.

Vladimir Putin: In that case we will lift the embargo.

Viktor Zubkov: We should lift the ban and allow grain exports.

Vladimir Putin: We don’t know yet how much grain will be harvested this year. What do you suggest we should do to control the grain market after harvesting is completed? I mean in autumn, late autumn and early winter.

Viktor Zubkov: Mr Putin, we understand that allowing exports may lead to higher domestic market prices. We have an effective method of countering this. Our intervention fund has over 6 million tones of grain. If prices begin to grow, we can begin to apply customs and tariff regulations measures.

Vladimir Putin: I agree with your proposal. We will lift the grain export ban from July 1, 2011. But following the practice of the recent years, the Agriculture Ministry, as well as other ministries and financial institutions, are to provide all the necessary support for our agricultural producers. This is a difficult time for them. Some of them are still sowing, others are already harvesting. You must see to it that our agricultural producers receive the support they need as agriculture is a major sector of Russian economy.

Lifting the export ban is one of the measures of supporting agricultural producers who have export potential today.

Viktor Zubkov: We will fulfil your instructions, Mr Putin.