MOSCOW -- On June 19, 2017, a framework contract was signed for the supply of 300,000 tons of Russian food wheat between the Venezuelan corporation for foreign trade CORPOVEX and OOO OZK Yug, a subsidiary of Russia's JSC "United Grain Company" OZK, according to the Russian company.
"The decision to export Russian grain to Venezuela was made during a telephone conversation between President Nicholas Maduro and President Vladimir Putin on May 18 this year," JSC OZK stated.
"The delivery will be carried out in the new agricultural season 2017-2018," the Russian company said.
Corpovex is the state-owned Venezuela Corporation of Foreign Trade. In 2014, Venezuela President Nicolas Maduro decreed that it "take on" the purchase of products for the public sector, formerly managed by 7 state-owned companies: Bariven, Agropatria, Red de Abastos Bicentenarios, CASA, Suvinca, CVG International and Veximca, as well as other state-run enterprises.
CORPOVEX was represented by its President, Major General Giuseppe Yoffreda Yorio, with "OZK South" LLC represented by its Director General Edvin Avanesyan. Yoffreda Yorio is also the Minister for Air and Water Transportation. Prior to his appointment in 2014, Yoffreda Yorio was Commander of Venezuela's Air Force.
In addition to the Venezuelan ambassador to Russia, representatives of the Venezuelan National Development Fund Fonden also took part in the event. The Russian delegation was headed by the General Director of JSC, Mikhail Kiyko.
"The first shipment of wheat will arrive in Venezuela in August," said Venezuela's Ambassador to Russia Carlos Rafael Faria Tortosa. "This is a strengthening of Russian-Venezuelan cooperation and a blow to the economic war," Venezuela's ambassador claimed.
Last week, Egypt bought 175,000 metric tons of Romanian and Ukrainian wheat, marking the first time since January that Egypt didn't buy any Russian wheat, which has a 53% market share in Egypt's purchases so far this year.
While neither JSC nor Corpovex gave the value of the contract, the average price of the Egyptian purchase last week was $208.08 a ton, meaning that the Venezuela contract for 300,000 tons is worth about $62.4 million.
Each metric ton of wheat produces about 1,550 loaves of 1.5 pound white bread.
Approximately 80% of Venezuela's bakeries report that they have no available stocks of wheat.