Potential export of agricultural products from the Russian Federation to the Persian Gulf states by 2030 can reach $ 3 billion

Russian Federation capabilities to export agricultural products to the Persian Gulf countries by 2030 are estimated at almost $3 billion, according to the Agroexport Federal Center.

"The Persian Gulf region, along with China, is one of the major ones in terms of opportunities for increased exports of agricultural products. We estimate the supply potential by 2030 at almost $3 billion. Saudi Arabia and the UAE will remain the largest customers. Significant volumes will go to Iraq, Qatar, Oman and Kuwait," Dmitry Krasnov, head of the Center, said in his interview to Interfax on the eve of the opening of the Russian Agrarian Week scheduled for Friday as part of EXPO 2020 in Dubai.

According to him, Iran will also be an important region, which has already become a major buyer of Russian sunflower oil and grains. At the same time, supplies will depend on the harvest in that country and therefore will subject to seasonal fluctuations," he said.

"Among the major export products there will be grains, confectionery, sunflower oil, poultry and beef. These products are already in demand in the regional markets. A further supply growth will depend on whether Russian companies will be able to establish long-term relationships with customers and implement marketing strategies to promote their products," Krasnov believes.

The head of the Center also said that the AIC products turnover with the countries of this region doubled compared to 2016. Russian exports have also more than doubled. And a significant increase in supplies was registered in 2017, when its volume exceeded $800 million.

"If we talk about specific countries, among the largest buyers of the Russian agricultural products there is Saudi Arabia, which accounted for 77% of total exports to this region in 2021, and the UAE - 12%," Krasnov said. "In the product structure, the major export commodities are barley - 32% of the total in 2021, wheat - 25%, sunflower oil - 12%, poultry - 11%, chocolate confectionery - 7% and beef - 3%.

According to Krasnov, over the past three years, the export of halal products to the countries of the region has almost doubled and reached $180 million in 2021, of which over a half - $96 million - accounted for the poultry export. Supplies of chocolate confectionery products amounted to $56 million, beef - $26 million. Saudi Arabia and the UAE were the largest buyers of Russian halal products.

Source: interfax.az
Image source: interfax.az