Union of Grain Exporters: Ruble-Based Framework for Russian Food Exports Established

Sanctions placed on the Moscow Exchange pose challenges to Russian agricultural exports, particularly those conducted in dollars and euros. According to the Russian Union of Grain Exporters, a foundation for conducting food export trade in rubles is already in place.

The U.S. Department of the Treasury has announced an expansion of sanctions against Russia, which includes targeting the Moscow Exchange (Moex). In response, Moex has declared that it will suspend trading in US dollars and euros starting June 13, 2024, and will also halt transactions on the stock and money markets in instruments with settlement in these currencies.

“The sanctions imposed on the Moscow Exchange Group pose challenges to Russian agricultural exports conducted in dollars and euros. A foundation for conducting food export trade in rubles is already in place,” the Union said in a comment.

They also stated that Russian exporters have reaffirmed their commitment to international humanitarian principles and are determined to uphold their reputation as reliable suppliers of grain and other food products to Russia’s partners, thus contributing to global food security.

According to data from the Federal Customs Service, Russian agricultural exports reached at least $43,5 billion in 2023, an increase from $41,6 billion in 2022.