Grain is playing a key role in Moscow's negotiation with Iran for oil. It is thought there might be an exchange. The message comes from the Russian state's grain trader The United Grain Company, reports Reuters.
This discussion around a trade of food for oil has been rumbling on since earlier this year, however no details have been agreed and is thought to have been disrupted due to the embargo and sanctions initiated by the west.
This time however, talk of supplies of up to two million tonnes of grain being exported to Iran annually have been reported, a trade that would be worth up to US$500 million based on current world prices for Russian wheat.
The exchange is being encouraged due to a lower than expected harvest in Iran this year.
After all Russia is a major world exporter of wheat and is experiencing its biggest crop this year for over five years. From almost two-thirds of its planned area it has harvested some 50 million tonnes of wheat, says Reuters.
There is likely to be more to this arrangement that just an exchange of wheat for oil.
Read more HERE.
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| The Russian wheat harvest |
This discussion around a trade of food for oil has been rumbling on since earlier this year, however no details have been agreed and is thought to have been disrupted due to the embargo and sanctions initiated by the west.
This time however, talk of supplies of up to two million tonnes of grain being exported to Iran annually have been reported, a trade that would be worth up to US$500 million based on current world prices for Russian wheat.
The exchange is being encouraged due to a lower than expected harvest in Iran this year.
After all Russia is a major world exporter of wheat and is experiencing its biggest crop this year for over five years. From almost two-thirds of its planned area it has harvested some 50 million tonnes of wheat, says Reuters.
There is likely to be more to this arrangement that just an exchange of wheat for oil.
Read more HERE.
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