Russia gears up to cash in on trade war

[Photo:cgtn.com]

Analysts say that Russia may stand to benefit from a growing trade war between the US and China, with one of the country's biggest agriculture companies saying that they are now targeting China as a key export destination. 

The CEO of RusAgro, Maxim Basov, said that the company was about to sign its first direct contracts with China this year, after years of slow progress. 

"In fact we had troubles exporting even soya to China for the coming couple of years. But this year we see a big difference," Basov said.

Maxim Basov, CEO of RusAgro. [Photo:cgtn.com]

"There’s big interest from Chinese companies to develop new sources of raw material. We’re looking to sign our first direct contracts this year."

"The benefit for Russia is the closeness of Russia to China. In fact, Russia can export to China in four different directions,” he added.

Russia stands to benefit from increased soybeans, meat, fish and oil exports to China, since the US currently exports more than 100 million tons of soybeans to China alone. 

It is unlikely that Russia could replace such a large industry, but Chinese demand is already spurring the government to invest in better ports, more factories and better planting of crops. 

"In general, we have a target to double production of the 35 million tons of oilseeds by 2024, as well as increasing processing capabilities, logistics and port facilities," said Maltsev Stanislavovich, director of the Oils Union of Russia.

"The goal is to attract investment, and the government is ready to provide support in order to increase production output. I think that business is ready for it."

Back at RusAgro, they are feeling confident about the prospects. Basov added: “Well there is nothing stable in this world, but since we are a company that is looking to expand, we’re looking for such moments, because they create an opportunity for us. So our competitors better be ready: we are coming.”