On May 22, Alexey Ivanov, Director of the International BRICS Competition Law and Policy Centre, Academic Supervisor of the Centre for Technology Transfer, HSE University, delivered a report at the plenary session "Efficiency and Resilience in the Face of Challenges: New Approaches to Grain Supply Chain Operations," held as part of the V Russian Grain Forum 2026 in Sochi. The session was attended by Oksana Lut, Minister of Agriculture of the Russian Federation.
Oksana Lut noted that the grain market is a fundamental segment of the global food system, and that maintaining Russia’s leadership requires a comprehensive and systematic approach focused on improving efficiency. She emphasized that Russia supplies grain to more than 100 countries worldwide and accounts for around 20% of global wheat exports. Russia’s five largest grain trading partners are Egypt, Turkey, Iran, Kazakhstan, and Sudan, while the geography of exports remains dynamic, with new markets emerging and supply structures evolving.
The Minister stressed the importance of expanding export geography, developing exchange trading and hedging instruments, creating transparent pricing benchmarks, and strengthening Russia’s role in global grain price formation.
“Our grain should reach the end consumer directly from us, not through transnational corporations. This is critically important. (...) I am confident that we will succeed, and that Russia, despite the complexity of the current situation, will remain a stable supplier of food to the world and continue to play its role in the global food security system.”
Alexey Ivanov supported Oksana Lut’s proposals, highlighting the need to counter the existing oligopoly on the global grain market dominated by the ABCD+ group of major traders (ADM, Bunge, Cargill, Louis Dreyfus Company, as well as COFCO, Olam, and others). He recalled that a research report prepared by experts from the BRICS Competition Law and Policy Centre analyzes the key mechanisms behind the market power of global grain traders. In particular, the report addresses financialization, digitalization, and growing corporate interconnectedness among the largest market participants, which, according to the report’s authors, contributes to increasing concentration in the industry and heightened price volatility.
In the photo: Alexey Ivanov © HSE University
Sharp price fluctuations create risks for producers and importing countries that depend on stable grain supplies. At the same time, major international traders often benefit from instability, as volatility increases the profitability of financial operations and speculative instruments actively used by global market players.
Ivanov also drew attention to the phenomenon of “co-opetition” — a combination of competition and cooperation among the largest market participants. According to him, global traders simultaneously compete and collaborate through joint digital platforms such as Covantis and Tract, as well as infrastructure projects, enabling them to strengthen their market power. In this context, the initiative of the Russian Ministry of Agriculture to establish a BRICS grain exchange is of particular importance.
“This initiative is supported not only by grain-exporting countries, but also by grain-importing nations. However, for it to truly become an instrument for overcoming the oligopoly of global traders, it is critically important to ensure cooperation among exchange institutions across BRICS countries. Recently, a memorandum of cooperation was signed between one of the Russian commodity exchanges and the Egyptian exchange. Such a mechanism of ‘co-opetition’ — or, in other words, a combination of competition and cooperation — could become one of the ways BRICS countries and their traders level the playing field in the global market. In our view, progress is impossible without cooperation.”
Alaa Farouk, Minister of Agriculture and Land Reclamation of the Arab Republic of Egypt, noted that Egypt remains the largest importer of Russian grain and places great importance on cooperation with Russia, intending to expand it across all key areas.
“We believe there are significant opportunities to strengthen strategic cooperation with Russian partners. This concerns not only grain trade and supply chains, but also the development of high-tech infrastructure, processing capacities, and investment projects.”
Sergey Dankvert, Head of the Federal Service for Veterinary and Phytosanitary Surveillance, spoke about state control over grain circulation, emphasizing the importance of information systems in grain trade and the need for further development of traceability mechanisms. He noted that this plays a vital role for both the domestic and international markets.
Over the past 10 years, exports of Russian agricultural products have nearly tripled, and today the agro-industrial sector has become one of the key drivers of growth for the transportation industry, emphasized Alexey Shilo, Deputy Minister of Transport of the Russian Federation. He spoke about the ongoing development of infrastructure — including ports, international transport corridors, river logistics, and alternative export routes — and stressed the importance of transport digitalization and electronic document management.
“The more transportation data and traceability opportunities there are, the more solutions can be implemented to improve logistics efficiency and interaction between businesses and the government.”
BRICS countries are becoming key centers of growth in grain demand, stated Pavel Ilyichev, Chairman of the Board of Directors, LLC "MC Demetra-Holding". According to his estimates, around 70% of global consumption growth over the next 10 years will come from BRICS countries, driven by both economic development and demographic trends. At the same time, he noted that the global grain market remains highly concentrated and largely controlled by global traders, although their share is declining amid the rise of national players from China, Brazil, and Russia.
He stressed that the development of Russian companies requires a transition from national to global competition, which could be facilitated by BRICS instruments, including the New Development Bank, as well as expanded interstate cooperation and coordination with regulators.
“It is precisely this comprehensive approach that we see as a way to accelerate our development and play a more significant role in international cooperation in the agro-industrial market and in the field of food security.”
According to Igor Marich, Chairman of the Supervisory Board, JSC "NTB," Russia already has a sufficiently developed financial and commodity exchange infrastructure, but agricultural derivatives still account for only a very small share compared to global markets and remain largely tied to foreign benchmarks. He emphasized the need to develop Russian spot trading and domestic benchmarks (primarily for wheat and sugar), which should become the basis for greater liquidity and the emergence of a more advanced derivatives market.
Exchange trading is one of the factors that will reshape the market, agreed Boris Dyshlyuk, General Director, JSC "Agroholding 'Prostory." He noted that the company is already conducting transactions on the exchange and generally considers it a convenient, clear, and accessible instrument. At the same time, he pointed out that some technical nuances remain and are being refined jointly with the exchange and the Russian Grain Exporters and Producers Union.
“I believe other producers should also try this instrument — it’s not as intimidating as it may seem. When we were preparing our first transaction, we also thought there would be many hidden pitfalls, but in the end we see that the mechanism fully justifies itself, and the shortcomings that do exist can be corrected.”
The organizer of the Russia Grain Forum is the Russian Union of Grain Exporters and Producers. The event is held under the patronage of the Ministry of Agriculture of the Russian Federation, focusing on the main issues in the development of the agricultural industry and the challenges of international cooperation between the main representatives of the market.
