BEIJING, CHINA — A Russian export company has signed a deal to export 70 million tonnes of grain, legumes and oilseeds to China, Reuters reported on Oct. 18.
The company, EPT, said the contract was for 12 years with a possible extension, according to Reuters.
Karen Hovsepyan, leader of the New Land Grain Corridor Initiative, told the Tass news agency that the deal is worth nearly $26 billion.
Russia has strengthened ties with China over the past several years, and this week Russian President Vladimir Putin is visiting China to speak with Chinese President Xi Jingping about trade and other issues.
Russia is coming off a bumper grain harvest in which it exported an estimated 60 million tonnes of grain during the 2022-23 marketing season. With its invasion of Ukraine having reduced Ukrainian grain shipments, Russia has expanded its position as the world’s No. 1 wheat exporter. It exported an estimated 47 million tonnes of wheat in 2022-23 and is forecast to ship a record 50 million tonnes in the current marketing year.
Although China is trying to become more self-sufficient in grains and oilseeds, it is still by far the biggest importer of those products, particularly soybeans and corn.