The Chinese Customs Office endorsed the purchase of wheat from Kurgan, a region in Russia, following an ongoing trade war with the United States. This helps Russia drastically boost exports of wheat goods.
As recorded yesterday by Reuters on Saturday, July 27, 2019, China has exported wheat from six Russian regions to date. Previously, until the trade conflict intensified, China was the dominant seller of U.S. soybeans. In reaction to US-pegged prices for various Chinese goods, Beijing implemented a 25% tax on exports last year.
Russia, as the world’s largest wheat exporter, plans to invest billions of dollars in the infrastructure and logistics sector to increase 55.9 million tons of exports by 2035.
In the best estimate, the figure in Strategy 2035 published by the Russian Ministry of Agriculture, predicted earlier this month to reach 63.6 million tons.
Russia’s grain supply can play an important role in President Vladimir Putin’s plan to increase the country’s agricultural product exports to the US $45 billion by 2024. The Ministry of Agriculture is responsible for that initiative.
The Chinese government itself agreed to continue importing wheat from all regions of Russia. Along with the increasingly severe US-China trade war, wheat imports from Russia also increased.