China has relaxed restrictions on imports of Russian wheat, a move that could address food security concerns in the world’s second largest economy and ease the impact of Western sanctions on Russia.
The decision to allow imports of wheat from all regions of Russia was made during Russian President Vladimir Putin’s visit to Beijing earlier this month, but the details were only announced by China’s customs administration this week.
Russia is the world’s top producer of wheat. Previously, China had restricted wheat imports from Russia due to concerns about the presence of dwarf bunt fungus — a disease that can cause severe loss of yield for wheat and other crops — in some parts of the country.
China has refused to condemn Russia’s attack on Ukraine, instead repeating calls for parties to “exercise restraint” and accusing the United States of “fueling fire” in the region
The agreement is the latest in a series of deals between Russia and China, and according to experts, it helps both nations.
It helps Beijing secure food supplies at a time when global food prices are already near 10-year highs. Wheat futures jumped by about 5% on the Chicago Board of Trade on Thursday after Russia attacked Ukraine, as the two countries account for about a third of global supply. Futures pulled back a little on Friday, but are still up 12% this week.
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