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Omsk grain through the Northern Sea Route: Is it a reality or a myth?

The initiative of the Governor of the Omsk region Alexander Burkov on grain supplies to Southeast Asia through the Northern Sea Route was evaluated by federal experts. Alexander Burkov, as part of the Eastern Economic Forum, has already held talks on loading Omsk grain onto ships and delivering it along the Irtysh and Ob to the port of Sabetta on the Yamal Peninsula, there to be loaded onto ships and transported via the Northern Sea Route to Vladivostok. The head of the Omsk region considers this route for Siberia to be a cheaper route than transportation by rail, AgroVestnik reports.

 

Dean of the Faculty of Economics of the Russian State Agrarian University Valery Koshelev notes the high quality of Siberian grain and the potential effectiveness of a new way of its delivery to consumers:

"Due to the fact that the ruble is low, world prices are favorable for our exporters. As for the possibility of exporting part of the grain from the Omsk region along the Northern Sea Route, this option can be effective. It is much cheaper than taking it by rail. At the same time, in addition to grain, you can bring there something else with high added value. Asia-Pacific countries are interested in our products. For example, our soybeans are grown without genetic modification. And in the world, 95% of soybeans are genetically modified soybeans. And our soy is considered to be of higher quality."

 

Alexander Korbut, vice-president of the Russian Grain Union, points to the need to expand grain supplies from the Omsk region to Eastern countries:

"Siberian regions need to enter the eastern market, because Siberia is in a grain dead end. Logistic problems do not allow the region to enter the markets. As for the Northern Sea Route, it is necessary to understand how to deliver in this direction, the corresponding infrastructure, ships are required here. It is necessary to consider the economy. Because good wishes to develop export and the desire to answer the task that we are developing the Northern Sea Route is good, but we need to calculate how economically feasible it is. In general, the direction of exporting the same grain to the Asia-Pacific countries is promising."

 

The Philippines are already interested in the supply of Omsk grain, and negotiations with Japan were also announced. Considering that 11 countries with a huge population are included in the Asia-Pacific region, this market looks extremely promising.

  • Omsky Biocluster Press Service
  • 17 September 2019