Russia Clinches More Grain Control Just as Wheat Prices Spike
Amid global supply concerns, Russia intensifies efforts to control its vital grain industry, prompting major Western merchants like Cargill Inc. and Viterra to withdraw last year. Even top private traders face challenges amid government pressure, consolidating market power in Kremlin-linked firms’ hands. This move could enhance Russia’s influence over grain exports, raising geopolitical implications as fewer entities dominate the market.
Russia is stepping up its bid to control even more of its crucial grain industry — potentially giving it greater power over exports — just as worries mount over global supply.
Major Western merchants including Cargill Inc. and Viterra pulled back from Russia last year after government pressure to make way for local firms. Now, even the country’s top private trader is finding it tough to operate amid a spat with the state. That puts the market in the hands of fewer companies, some that have or had links to the Kremlin.
Source Link : https://www.bloomberg.com/news/articles/2024-05-26/russia-clinches-more-grain-control-just-as-wheat-prices-spike
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