Market News & Headlines >> COFCO Eyes Stake in Russian Grain Terminal
China is ramping up investment in Russian agriculture, with state-owned commodities trader COFCO in talks to buy a 25% stake in Russia’s third largest deepwater grain terminal, KSK, at the port of Novorossiysk, according to recent reports from Reuters News Service and Russian daily Vedomosti.
"Such a deal could give COFCO greater capability to export Russian grain in large volumes to the big Middle Eastern markets," one source told Reuters. "Novorossiysk is especially important for wheat exports to Egypt."
KSK, which is a deep water terminal, handled 4.8 million metric tons of grain exports last year. A 25% plus one share stake is controlled by Cargill Inc., which is reportedly not participating in the COFCO deal, according to a report from BNE Intellinews published in the Moscow Times last week. The report noted hat the deal comes on top of several others that point to expansion of Chinese investment in Russia’s agricultural sector.