Putin Backs Initiative to Create Grain Exchange Within BRICS

SOLNECHNODOLSK, Russia (Sputnik) - Russian President Vladimir Putin has supported an initiative to create a grain exchange within the BRICS bloc and said speculative trading affects prices and consumers.

"Regarding an exchange, of course, you are absolutely right. All these exchange indices are formed either in the United States or in Europe, in Paris. I do not know, how much grain do the French produce? I think less than we do. And traditionally, stock the exchange index is formed there. Of course, this is unfair, because from here it affects pricing. Your idea is very good," Putin said at a meeting with representatives of the agricultural-industrial sector on Tuesday.

Since there are countries in BRICS that produce and buy grain, they might be interested in creating such an exchange, the president said.

"Especially since these things of a speculative nature, of course, affect consumers in the end. And this is a problem. And these are problems that all governments are trying to solve... We will definitely work on your suggestion with our partners," Putin said.

Russia's share in the world grain market is approaching 25%, and every fourth tonne of grain is of Russian origin, Eduard Zernin, the head of the Russian Union of Grain Exporters, told the meeting.

Zernin said the attempt to "cancel" Russian grain on the world market over the past two years has failed, adding that exporters had built direct links with consumers and increased their export volumes. However, issues, such as fierce competition and new transaction problems, persist — in particular, the game of lowering the cost of grain on world exchanges, he said.

In 2023, Russia exported at least $43.5 billion worth of agricultural-industrial products to foreign markets and supplied $41.6 billion in such products in 2022. In 2023-2024, up to 65 million tons of grain is planned to be delivered abroad, Putin said.