russia switches to trading grain for rubles on November 1

russian prime minister mikhail mishustin has signed a decree approving a list of products for which special payments in rubles are allowed,russian media report. The decision applies to export contracts starting November 1.

The list of crop products includes:

• barley
• corn,
• wheat and meslin,
• soybeans
• flax seeds,
• sunflower, soybean and rapeseed oil,
• sugar
• sugar, oilcakes and other solid residues obtained from the extraction of fats.

The list of livestock products includes pork, poultry meat and food by-products, milk and cream.

The list of products was determined in accordance with the decree of the president of russia “On the special procedure for opening settlement accounts in authorized banks by foreign buyers of russian agricultural products”. It is reported that it was prepared taking into account information on trading on commodity exchanges and monitoring of over-the-counter transactions, and some items were worked out with industry associations.

A special settlement mechanism can be used to pay for the supply of these products to foreign markets. Foreign buyers will be able to apply to open special ruble and foreign currency accounts like “3” in authorized banks.

“Buyers will be able to transfer payment in foreign currency to a special foreign currency account and then sell this currency to an authorized bank or exchange. After that, the funds in rubles will be credited to a special ruble account and transferred to the supplier of the products,” the Russian government explained.

Tags: meat, wheat, Russia, linseed, sunflower oil, rapeseed oil, corn, soybean oil, pork, barley, sugar, soybean, Milk