Russia and China have reached a new agreement to build a new grain hub on the border between the two countries, according to the South China Morning Post (SCMP).
The Nizhneleninskoye-Tongjiang Grain Terminal will be located between Vladivostok in Russia's far east and Heilongjiang province in northeast China. The project will involve an investment of 15 billion RUB (US$ 159 million), as reported on September 12.
Chinese and Russian officials signed the agreement on September 11 during the Eastern Economic Forum in Vladivostock. They also made other agreements aimed at improving the logistics of transporting Russian grain to China, as stated by the SCMP.
New Russia-China grain hub strengthens bilateral and logistics cooperation
The New Land Grain Corridor will work with state-backed China Chengtong International Investment to create a border logistics hub, the report says. This group of companies manages the development of grain production and infrastructure in the Ural Mountains, Siberia and the far east of Russia.
“This is a continuation of the current agreement between the parties on strategic cooperation and expansion of mutual trade. As well as the next step in the implementation of the Russia-China New Land Grain Corridor program,” said an official statement from the forum.
The SCMP wrote that Beijing is making the food security of its 1.4 billion population a priority in taking the measure.
Other agreements included a contract between Trans-Baikal Grain Terminal and Chinese company Guangdong BestCon Intelligent Equipment to create a specialized grain land fleet in Russia, according to the report. This could serve as an alternative to sea routes.
Expanding the partnership: more details on bilateral agreements
The report foresees the manufacture of 22,000 containers to transport up to 600,000 tons, with a maximum capacity of 8 million tons per year.
Russia's EPT Production and Export has signed contracts with Noble Home and Trans Eurasia (Tianjin) International Logistics for grains and oilseeds in China.
The agreements show how bilateral economic cooperation continues to improve between the neighbors. Especially as Western tensions continue to disrupt supply chains and restrict trade, according to the SCMP report.
Bilateral energy trade continued despite the West imposing sanctions on Russia following its invasion of Ukraine in February 2022.
The value of trade between the countries increased by 32% compared with the previous year, reaching US$155.1 billion in the first eight months of this year, according to customs data.
Russian imports have grown, mainly oil and gas, but also agricultural soybeans and rapeseed oil, according to a recent report.
The Eastern Economic Forum, which began on 10/09, was attended by Russian President Vladimir Putin, Zhang Guoqing and several business representatives.
Source: Oils & Fats International
