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REC Ramps Up Support for Exporters of Fertilizer

Russian exporters continue to expand shipments of mineral fertilizer to Africa. Facilitating this increase is the Russian Export Centre’s product line, among other things. The statement comes from REC (part of VEB.RF) Senior Vice President Nikita Gusakov, who was speaking at the session ‘Stabilizing the Fertilizer Market to Eradicate Hunger in African Countries’ as part of the Russia–Africa Economic and Humanitarian Forum in St. Petersburg on 27 July. The discussion was opened by President of the Republic of Zimbabwe Emmerson Dambudzo Mnangagwa.

“Domestic fertilizers are needed to increase yields and improve the quality of agricultural production. The REC Group seeks to address issues of global food security, and supporting exporters is an important part of that. For Russian companies working on this, our most sought after product is insurance for short-term receivables. Our foreign partners can use the service to find a supplier of Russian goods and services,” Gusakov said.

Russia’s leading position as a global exporter of fertilizer, with approximately 20 foreign nations highly dependent on domestic supplies, was noted during the session. Russian producers are now taking steps to redirect sales to friendly markets, and that includes Africa (and such countries as Egypt, Kenya, and Nigeria) where tea, coffee, flowers, peanuts, tomatoes, maize, and other agricultural products are grown.

In his talk, Gusakov touched upon increasing trade between Russia and Africa and related issues of importance. It will be necessary to carry out settlements with African counterparties in currencies other than the dollar or euro and connect to alternative channels of communication between financial institutions. Some transactions are already being made in yuan. In the medium term, the ruble may also be an option. The first contracts have already been concluded in Russia’s national currency. To incorporate local currencies in a more systematic way, it would be necessary to develop financial infrastructure and the share of goods imported from Africa, which would make it possible for more transactions to be conducted in the national currency later and gradually decrease the number of financial transactions carried out in the currency of a third party.

Trade deficit could also be offset by investment, with the financing companies receive from exports to Africa being invested on the continent.

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“We highly value the results of our joint work at the summit. I am sure the achieved results are creating a good foundation for further deepening the Russia-Africa partnership in the interests of our nations’ prosperity and wellbeing.”

President of the Russian Federation
Vladimir Putin

The Russia–Africa Summit, which is taking place in Sochi on 23–24 October 2019, encapsulates the historically friendly relations between the African continent and the Russian Federation. This Summit carries great significance as it is the first of its kind to emerge during a period of major global and international transformations. In response to the aspirations of the people it is representing, the Summit intends to build a comprehensive framework for expanding Russian–African relations into broader horizons of joint cooperation across different fields.

The African nations and Russia share a common understanding of international relations, based on the principles of respect for the rule of international law, equality, non-interference in the internal affairs of states, and the peaceful resolution of disputes. Both sides affirm their commitment to support multilateral actions to oppose new international threats, be they terrorism and extremism in all their forms, or declining growth rates. The two sides share a firm conviction regarding the importance of developing trade flows and supporting mutual investment in such a way as to ensure security, peace and development for the African and Russian people.

African countries have huge potential and opportunities that will allow them, once efforts to streamline their economies have been achieved, to emerge as real global players. In recent years, the nations of this continent have achieved major successes spanning the political, economic, social and administrative spheres. Africa has flourished in terms of growth over the past decade, reaching a continent-wide growth rate of 3.55% in 2018.

The African Union Summit, which was held in Niger in July 2019, continued the efforts of the African countries and saw the African Continental Free Trade Agreement come into force, along with its operational instruments. The agreement is one of the key objectives of Agenda 2063, an African development strategy that has been created to address the African people’s desire for prosperity and decent living standards.

These successes are opening up wide-ranging prospects for cooperation between African countries and the Russian Federation, and confirm the determination of African governments and their people to cooperate with multiple partners in order to establish mutually beneficial relations.

With this in mind, we express our hopes that the Russia–Africa Summit will help in the establishment of constructive strategic relations, based on partnership between two sides across various fields, and in the service of fulfilling the hopes and aspirations of the African people and their friends in Russia.

President of the Arab Republic of Egypt
Abdelfattah ALSISI