President Vladimir Putin met July 6 with Dmitry Sergeyev, Director General of the United Grain Company, the largest grain trade and logistics firm in Russia. The company, set up as a majority state-owned firm in 2007, is carrying out significant operations, including setting up national wheat and sugar stockpiles, making bi-lateral trades directly with nations. Plus, other currencies can be used at the discretion of the trade partners. A wheat purchase by Turkey, for example, will be paid in rubles.
Moreover, the United Grain Company does not use price indices for wheat and grain commodities set by the Chicago Mercantile Exchange, and the International Futures Market of France. As Sergeyev told Putin, “Mr. President, in 2021, the United Grain Company (UGC) started online auctions at the National Commodities Exchange – with support from the Ministry of Agriculture and the Central Bank of Russia. In less than a year, they showed their effectiveness with trade volumes worth 15.6 billion rubles. This will be our domestic index; we will no longer use indexes from foreign exchanges like the Chicago Mercantile Exchange or the International Futures Market of France. I mean, this is promising and is working successfully, and much of the client base uses this exchange.”
Sergeyev and Putin discussed many details of these matters in person, and the Kremlin posted a transcript of their public exchange on Wednesday. A few excerpts:
