China could emerge as a major buyer for Russian wheat and sunflower oil as wide-ranging financial sanctions threaten Russia's agriculture trade flows to its traditional markets in Europe, S&P Global informed.
As a reminder, China officially allowed to sell wheat from all Russian regions and use its deep-sea ports to ship it. Earlier, wheat exports to China were only allowed from seven regions, and roadways and railways were used for exports.
China's wheat market presents a huge opportunity for Russia as Chinese dependence on wheat in 2021 rose following higher substitution with corn in its animal feed.
Russia is also expected to make inroads into China's huge vegetable oil market as traders see an uptick in demand for Russian sunflower oil from China, with top exporter Ukraine remaining absent from the market.
China has already expressed its intention to maintain trade ties with Russia for mutual benefit.
