Russia can use trade crisis with Turkey to capture global flour market — grain union

31.03.2017

Turkey excluded Russia from the list of countries exporting agricultural products without duties from March 15

Russia can take advantage of the trade crisis with Turkey as an opportunity to capture the global flour market, President of the Russian Grain Union Arkady Zlochevsky told TASS on Thursday.

Turkey excluded Russia from the list of countries exporting agricultural products without duties from March 15. The duty-free regime applied to Russian products earlier when it was imported for processing or further export to third countries.

"Turkey deprived itself of a cheap raw materials source and will have to target more expensive sources. They open thereby an opportunity for us to reduce the cost of our flour and it may be able to compete with the Turkish one on international markets," Zlochevsky said.

Turkey is currently the leader on the flour market. It makes the flour predominantly from the Russian wheat and sells it in third countries, he said.

The problem can be settled by wheat sales to Russian flour mills instead of exporting to Turkey, Zlochevsky said. This will help Russia in capturing flour sales market, he added.


tass

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