The growing trade war between the United States and China could benefit Russia’s agricultural giant RusAgro, CGTN reports. One of the country’s biggest agriculture companies says they are now targeting China as a key export destination.
According to RusAgro’s CEO, Maxim Basov, 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 soybean to China for the past couple of years. But this year we see a big difference,” Basov said.
He added that Russia’s geographical proximity to China is a big advantage since Russia can export to China in four different directions.
“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.”
Russia stands to benefit from increased exports of soybean, meat, fish, and oil to China since the U.S. 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 general of the All-Russian Union of Oil and Fats.
“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.”