Russia pushes for grain exchange within BRICS, but China and India are reluctant – Ukrainian intelligence

According to Ukrainian intelligence, Moscow plans to initiate formal consultations on the creation of a grain exchange within the BRICS during the St. Petersburg International Economic Forum, scheduled for June 18–21.

“The Kremlin is promoting the project as a tool to strengthen its position in the global agricultural market and circumvent Western sanctions,” the intelligence stated.

Russia sees this initiative as a way to expand its influence over countries in the Global South. The proposed grain exchange is intended as a stepping stone toward a broader commodity platform for oil, metals, and gas.

Russian authorities have suggested that the new platform within the BRICS would establish an “independent” grain price mechanism, minimize the influence of Western traders and the US dollar. Russia also proposes switching to settlements in national currencies.

“However, the initiative will hardly gain real support. China, Iran, Belarus, and India have so far refrained from active participation due to the risks of secondary sanctions and the threat of losing market access. Without their economic involvement, the project will remain declarative,” the intelligence emphasized.

Tariffs on Russian grain

At the end of May, the European Parliament supported the introduction of protective tariffs on fertilizers and certain agricultural products from Russia.

Tariffs on some nitrogen fertilizers will increase so much that it will lead to a halt in trade.