Home pageKDM Shipping Public Limited Comment on 2012 Russian Grain Exports

KDM Shipping Public Limited Comment on 2012 Russian Grain Exports

KDM Shipping Public Limited (KDM:PW), a leading Ukrainian maritime shipping company that is primarily involved in the niche segment of dry bulk river-sea freight in the Black, Azov and Mediterranean Sea regions, has reviewed recent statements by Russian Federation government officials and is satisfied that there will be no embargo or restrictions on Russian grain exports during 2012.

Denys Molodkovets, Chief Financial Officer of KDM Shipping cited Russian Deputy Prime Minister Arkady Dvorkovich’s recent comments published in Kommersant after a meeting with the head of the Russian Ministry of Agriculture, Nikolai Fyodorov, whereby they forecast the 2012 national crop at 75-80 million tonnes.  "In view of the remaining inventories we have enough grain to meet domestic needs and to export in decent volumes," said Mr. Dvorkovich.  "The general position is that no additional measures are necessary", he continued, explaining that he meant trade intervention and "any other action related to the regulation of exports."

According to Mr. Molodkovets, Mr. Dvorkovich’s statements reflect and reinforce KDM Shipping’s own market view that Russian grain conditions were adequate this year to avoid the possibility of trade restrictions, and the market will operate normally.  “We do not anticipate any Russian trade limitations affecting our wheat cargo transport segment during 2012.  Business should continue as usual, we will continue to focus on grain transportation in the Black, Azov and Mediterranean Sea regions as a significant part of our 2012 business, and we do not see cause to consider changing focus at this time.”

The Group transported 20,916 tonnes of wheat during the month of July, representing 35.5% of KDM’s monthly dry bulk cargo (58,864 tonnes).  Turkish ports accounted for 51.8% of the total monthly dry bulk cargo shipments by tonnage, Russian ports accounted 40.6% of the shipments by tonnage and Ukrainian ports accounted for 7.6% of the shipments by tonnage.  Itemized data and figures are available at KDM Shipping’s website (http://kdmshipping.com/Monthly-reports.html).