The Russian Government’s decision easing the embargo on grain exports may enable Armenia to import some wheat from Russia, which has traditionally been a major supplier of wheat to Armenia. Noteworthy is the point that embargo does not apply to international agreements.
The embargo was imposed on August 15 and applied to previously signed contracts. The Russian Government ordered shipment to be stopped irrespective of the contracts. A number of contracts with Armenian companies were cancelled as well. RA Minister of Agriculture Gerasim Alaverdyan expressed hope the contracts will be resumed.
The decision easing the embargo enables Armenia to import grain for the Russian military base.
Russia is a relatively new player in the world grain market. Over the last two years it is the fourth largest exporter after the U.S. Canada, and the EU. Experts say Russia will find it difficult to regain its market positions if the embargo lasts too long. So it should resume grain export as soon as possible.
The Russian Government’s decision did not have any serious impact on the international wheat prices.
Wheat prices are showing a downward trend, though they rise from time to time.