Russia Looking For Increased China Market Access In Winter Crops & Wood Pellets

Russia has prepared a number of initiatives to increase trade with China and is counting on the country to open its market to imports of Russian fuel pellets and lift restrictions on imports of winter wheat and barley, according to Maxim Reshetnikov, the Russian Economic Development Minister.

Reshetnikov was speaking at the Sub-Commission for Trade and Economic Cooperation in Beijing and said, “The trade turnover between Russia and China set a record last year, exceeding US$244 billion. Now we are looking for mutually beneficial decisions together so that this figure continues to grow further. On our part, we have prepared several initiatives: to lift restrictions on shipments of Russian winter wheat and barley and open the Chinese market to our environmentally friendly fuel pellets.”

Winter wheat and barley are cold-tolerant varieties planted in the autumn that grow through the winter and are harvested in the spring or early summer. It is used as animal feed, for malting, and as a cover crop to improve soil health and prevent erosion. Planting in the autumn allows for an earlier harvest, spreading the workload and freeing up fields for other crops.

Concerning wood pellets, Reshetnikov said that “China classifies pellets as waste, so they cannot be imported at this point, but their officials understand that this is environmentally friendly fuel, and we have supplied and supply it to various countries in the world, so this issue will be worked out. The potential trade just for this item is estimated at US$250 million. As soon as China opens this market, our wood processors will have the opportunity to reduce prices for other products and become more competitive.”

He also said that direct Chinese investment in Russia grew by 13% last year. New joint investment projects are being launched in various sectors, including the chemical and metal industries, infrastructure, automobile manufacturing, agriculture, logistics, and information technology, among others.

Russia and China signed a new agreement on the promotion and mutual protection of investment during a meeting between the two countries’ leaders in May. Reshetnikov updated news on this, saying that “the Russian side plans to complete all the necessary procedures for the agreement to go into effect by the end of this year.”