OREANDA-NEWS. April 24, 2014. Kazakhstan and Russia are discussing the possibility of grain swaps. This was reported by Kazakhstan Agriculture Minister Asylzhan Mamytbekov.

"The Moscow city’s population only is roughly equal to the population of Kazakhstan and they consume grains in the amount of 2 million tons per year. However, our strategic goal is to optimize acreage planted of wheat to such extent so that we would produce for our own consumption and for sale in our traditional markets," A.Mamytbekov said at CCS briefing.

According to him, today grain is mainly imported from the southern part of Russia (Krasnodar and Kuban) to Moscow. "Rail costs are approximately USD 30 per ton. It is much more profitable to deliver the grain to Moscow for us, and this grain would get to the Black Sea, thus making an exchange, i.e. the swap operation", he added.

Agriculture Minister also expressed confidence that the future integration of Kazakhstan with Russia in the framework of the CES will improve trade between our countries. "I think that any economic integration improves the trade between the countries, and considering the unification of railway tariffs , and all other trading costs, it is natural to allow to be more competitive for Kazakh grain at the Black or Baltic Sea," the Minister concluded.