Russia: Ministry of Agriculture proposed to limit the exports of grains in the second half of the season to 20 mln tonnes




The draft decree prepared by the Ministry of Agriculture of the Russian Federation "On imposition of the temporary quantitative limitations on the exports of grain crops from the territory of the Russian Federation" proposes to use the mechanism of quota allocation for grain shipments as the restrictive measure, reported the Russian mass media, on January 14.

The draft decree of the Ministry proposed to set the non-tariff quota for the exports of Russian grains outside the Eurasian Economic Union (EAEU), for the second half of 2019/20 MY (January 1 - June 30), at the volume of 20 mln tonnes.

The Federal Customs Service of Russia should control the quota realization. January 1 is the planned date of entry into force of the decree, informed the text of the document.

The General Director at the analytical center SovEcon, Andrei Sizov, called the reporting plans as "unpleasant precedent".

According to him, traders will not likely reach the announced volumes of 20 mln tonnes for the second half of the season, but the precedent is unpleasant. The more regulations the market has, the more uncertainties and risks the whole grain sector receives. Of course, the document directly violates the XI article of the GATT/WTO on prohibitions or restrictions of the exports/imports.