(Bloomberg) — Major Russian grain exporter TD Rif has accused Moscow of trying to control and increase export prices, marking a further escalation in the dispute between the government and one of the country’s largest wheat traders.
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In a letter to a buyer seen by Bloomberg earlier this month, the consignor accused the country’s agriculture ministry of encouraging inflated bid prices. Rif said authorities have punished those who do not comply by, among other things, denying them the paperwork required for export.
In response to a request for comment from Bloomberg, a Rif spokeswoman denied that the company had anything to do with the letter.
“As market participants, we have become hostages to these manipulations, which have an extremely negative impact on our position and reputation,” the April 10 letter said, adding that Moscow’s actions also affected the competitiveness of Russian wheat at the international level .
In a new twist, the company announced Friday in a statement on its website that it would change its name to Rodnie Polya LLC. Its press service said the new name better fits its business model.
Issues with government pushback on pricing have also hit other traders’ Russian wheat exports early in the season.
Russian Agriculture Ministry officials did not respond to emails seeking comment on the letter. Agricultural regulator Rosselkhoznadzor said pricing and market regulation were not part of its mandate.
TD Rif’s ships remained stuck in ports as Russian agricultural regulators accused their cargoes of failing to meet safety and quality standards, affecting exports to key buyers including Egypt. The company’s long-time owner said cargoes were being unfairly blocked and that the company was under pressure to sell its assets at a low price.
Russian authorities recently detained two ships linked to the company heading to Egypt – under circumstances that remain controversial – prompting Cairo to intervene to help resolve the matter.
Read more: Second Egyptian wheat ship stuck in Russia sails after three-week wait
According to the Agriculture Ministry’s policy, all offers from Russian exporters, including the Egyptian tenders, were made “at a single, inflated price,” Rif’s letter said. Companies offering lower prices faced “unfair sanctions,” including denial of phytosanitary approvals, it said.
Russian officials have been trying for months to impose an informal price floor on exports. Higher prices would calm farmers angry about falling incomes and potentially boost the Kremlin’s revenue. It is unclear how effective these efforts were.
Russia is the world’s largest wheat exporter, and any sign of a slowdown in supplies could shift demand to other countries of origin, potentially driving up global prices. However, according to consulting firm SovEcon, the dispute has so far not had a significant impact on the company’s overall export volume.
(Corrects note that TD Rif sent a downvote before publishing)
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