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Saudi Arabia Strengthens Agricultural Trade Ties with Russia

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Saudi Arabia has emerged as a key importer of Russian grain, solidifying its position among the top three buyers. Since the start of the current agricultural season in July 2024, Saudi Arabia has purchased 2 million tons of grain, including about 860,000 tons of wheat. This milestone underscores the deepening agricultural trade relationship between the two nations, offering mutual benefits and paving the way for future collaborations.

A Growing Partnership in Grain Trade
The Agriculture Ministry’s Agroexport center highlighted this development during a plenary session at a business mission of Russian exporting companies to Saudi Arabia. Eduard Zernin, Chairman of the Board of Grain Exporters and Producers Union, emphasized the potential impact of establishing the BRICS Grain Exchange, which could further expand trade in the Middle East and North Africa.

Saudi Arabia, through its FEEDCO Purchasing Director Eiman Ibrahim, has expressed its need for a reliable grain supplier to meet domestic demands. The kingdom is also striving to bolster its local grain production while seeking expert support from Russian businesses.

Strategic Opportunities for Collaboration
Saudi Arabia’s strategic geographical location positions it as a potential hub for Russian grain exports to the broader Middle East. Eiman Ibrahim suggested that grain import volumes should increase significantly to capitalize on this advantage.

Russia’s Deputy Agriculture Minister Sergei Levin highlighted the fruitful collaboration between the two nations in trading wheat, which accounted for nearly half of Saudi Arabia’s wheat imports in 2023. Saudi Arabia has also become a key market for Russian barley, poultry, beef, and vegetable oil.

Expanding Agricultural Trade Beyond Grain
With over 140 Russian enterprises accredited to supply agricultural products to Saudi Arabia, the collaboration extends to meat, dairy, and fish products. Agroexport head Dmitry Krasnov noted that Russian agricultural exports to Saudi Arabia have grown by 30% annually since 2019, surpassing $1 billion in January-October 2024.

The goal is ambitious but achievable: reaching $1.5 billion in exports by 2030, driven by an expanding product range and enhanced trade infrastructure.

Broader Areas of Cooperation
The meeting also identified opportunities for collaboration in green production, waste reduction, agricultural technology, and infrastructure development. Mamadouh Alsharari, General Director of the General Directorate of the Ministry of Environment, Water, and Agriculture of Saudi Arabia, emphasized the benefits of combining Russia’s agricultural expertise with Saudi Arabia’s logistical advantages to boost production and supply markets worldwide.

Conclusion
Agricultural trade now accounts for nearly 90% of the total trade turnover between Russia and Saudi Arabia. With a strong foundation and clear opportunities for growth, this partnership is poised to play a pivotal role in meeting global agricultural demands while enhancing the economies of both nations.

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