KIEV/LONDON Nov 13 Soyuz Commodities, the
fast-growing Russian grain exporting arm of Summa Capital, is
expanding its footprint further into the cereal-rich Black Sea
region, industry sources say.
The grain-trading arm of Russian investment group Summa
Capital is starting operations in Ukraine, as it quickly becomes
one of Russia's top exporters in 2012/13 alongside international
trade houses including Glencore and Louis Dreyfus, the
Soyuz Ukraine, a unit of Switzerland-based Soyuz
Commodities, has already recruited experienced traders including
Bjoern Stendel, who helped start Canadian grain handler
Viterra's operations in Kiev in 2010, before Viterra's
subsequent takeover by Glencore.
Summa declined to comment. Investment and trading group
Summa, owned by tycoon Ziyavudin Magomedov, has significant
holdings in industries including oil and gas infrastructure, and
The Black Sea region typically accounts for about a quarter
of the global wheat trade. Its countries - Russia, Ukraine and
Kazakhstan - which normally produce about 10 percent of the
world's wheat - were hit by a drought this year, which slashed
their grain harvest by a third.
Ukraine, which plans to harvest 46.2 million tonnes of grain
in 2012, including 15 million of wheat and 20-21 million tonnes
of maize, plans to export at least 20 million tonnes of various
grains in the 2012/13 season, which runs from July to June.
The former Soviet republic, which plans to boost grain
output to 80 million tonnes by 2020, exported 22.8 million in
Summa boosted its grain operations earlier this year by
purchasing a 49 percent stake in Russia's state grain trader UGC
for 6 billion roubles ($180 million).
Acquisitive Summa is expected to be considering a number of
possible deals at a time of consolidation in the global grains
Last month, sources told Reuters that Summa had asked the
state development bank Vnesheconombank (VEB) to fund a possible
acquisition of Australia's GrainCorp which has already
received a bid from U.S. agriculture giant Archer Daniels