Russian State Grain Trader Won’t Seek Export Monopoly (Update1) By Maria Kolesnikova and Yuriy Humber

Grain aims to emerge as the local market leader as of 2013, he said without elaborating. “Our strategy is to become the leading player, not the monopoly on the Russian grain market,” Levin said. “We will seek to partner with existing market operators and traders.” Russia set a goal in June of doubling grain exports to as much as 50 million metric tons within 10 to 15 years. The country, whose storage and shipping facilities handle just 40 percent of its annual crop volume, is building southern river ports and adding a terminal on the Black Sea next year. Ports on the Black and Baltic seas need more grain storage and handling capacity, and a new port is necessary in the Far East to boost exports, according to Levin. United Grain has a three-step strategy that begins with “establishing a prominent position” in Russia over the next year, Levin said. It will buy and sell grain on the state’s behalf to regulate prices and provide infrastructure for partners, he said. The government has set a target of attracting private capital into the industry as a way of financing some of United Grain’s plans, Levin said. To contact the reporters on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net ; Yuriy humber in Moscow at yhumber@bloomberg.net . Last Updated: October 9, 2009 06:21 EDT