Russia gov't considers creation of state grain trader

By Aleksandras Budrys

MOSCOW, Aug 1 (Reuters) - The Russian government is considering creating a grain-trading company on the basis of a state agency and offering stakes in the firm to private companies, a source in the Agriculture Ministry said on Friday.

The source did not say when the firm might be formed.

"There is no fixed deadline. Currently, the possibility of consolidating various government assets into one company is being examined," the source told Reuters, speaking on the condition of anonymity.

The assets include various grain elevators and flour mills in which the government has stakes, as well as a grain export terminal in Russia's deep water port of Novorossiisk on the Black Sea.

The source said the government did not aim to monopolise grain trade.

"The idea is to manage the assets more efficiently and to generate profit. After the company is formed, there will be an initial public offering of its shares," the source said, without specifying how big the stake to be sold might be.

In late 2007, the government transformed its Federal State Unitary Enterprise Food Market Regulation Agency, which had previously been involved in grain intervention purchases and sales, into a commercial joint stock company 100 percent-owned by the state.

"The aim of creating the company is quite clear. As grain trade becomes attractive, bureaucrats are looking for ways of making some extra money using government resources," a market source, also speaking on the condition of anonymity, said.

But, the market source added, the process of forming the company is unlikely to be fast.

"The initial idea to unite the assets is rather difficult. The government itself appears not to know the exact stakes it has in agricultural enterprises, and some assets have yet to be privatised."

Russia exported nearly 13 million tonnes of grain in 2007/08 crop year and expects to export at least 15 million tonnes in the current 2008/09 season.

Actual export volumes will depend on government purchases to replenish its stocks, for which 31 billion roubles ($1.32 billion) have already been set aside. Analysts believe the government may export some of its stocks. (Reporting by Aleksandras Budrys; editing by Michael Roddy)