Nogger's Blog

06/02/13 -- The Russians have agreed to lift their 5% import duty on grains it would finally appear, although as ever things aren't quite as straightforward as they might seem.

Namely, the move needs regulatory approval, which could take a couple of months to sort out. Neighbouring Kazakhstan is already able to export wheat to Russia duty-free under the rules of a Customs Union launched in January 2010 between Russia, Kazakhstan and Belarus which effectively removed customs controls from the internal borders of all three.

Essentially it would seem that Kazakhstan will at the very least continue to supply whatever Russia's import needs will be until at least April, keeping the potential impact in Europe and beyond relatively minimal. It may at least make Kazakhstan less of a competitor on the global export market between now and the autumn. Having said that, India would appear to be more than capable and only too willing to take up any slack.