Aug. 21—Prospects for expanding the New Land Grain Corridor (NLGC)—the crop production, logistics and transport belt across Russia, along the Trans-Siberian Railway—were presented in late July, during a visit to Russia’s Far East by Prime Minister Mikhail Mishustin. On July 22, he visited the Trans-Baikal Grain Railway Terminal’s grain operation. He gave statistics on Russia’s progress in harvests and exports, saying that President Vladimir Putin “has instructed us to increase agricultural exports by 50% by 2030, compared to 2021.” He stressed that a major tool is “preferential lending” to farmers, along with assuring reliable fertilizer and other inputs. Agriculture Minister Oksana Lut also reported on achievements and goals. She made a point about wanting to increase Russian exports to China. “The key challenge remains reaching an agreement with our Chinese partners on tariff-free grain imports.”
The NLGC (NZSK in Russian), standing for the Moscow group of companies involved, foresees assembling the funding to expand the area of cropland involved in the infrastructure program, by several hundred thousand hectares. The focus is on the Urals, Siberia and the Far East. Major crops include wheat, oilseeds, barley, rye, oats, flax, and others.
The NLGC traces back some 14 years, with the stated support of Russian President Vladimir Putin, and of the Chinese government. The purpose is to provide food security through economic cooperation—the grain cartels’ worst nightmare. At the time of the 2023 Belt and Road Summit in China, Russia agreed to supply 70 million tons of grain and oilseeds to China over the ensuing 12 years. Multiple deals were signed between Russia and China in Vladivostok at the September 2023 Eastern Economic Forum, for the new grain hub called the Grain Terminal Nizhneleninskoye-Tongjiang, with the railway bridge, located between Vladivostok in the Far East and Heilongjiang, China’s northeastern province.
The crop procurement system uses contracts with farmers, with advance payment to them, and pre-set, fair prices. The concept involves building crop storage and handling facilities along the railway. A big storage and handling hub is in Zabaikalsk, on the Russian side of the border with China, whose city is Manzhouli. Its silos and facilities can handle 8 million tons of crops. Plans for a westward complex in Tatarstan, near Kazan, were announced in 2024. Smaller hubs are planned on the border of Iran, Turkmenistan, and other locations.
The model for transport is called “Grain+,” a mode of container freight for inland grain transportation. The system takes into account the different rail track gauges between China and Russia. Russia and China have agreed on producing special rolling stock for the system.
The ambitious goal is to have in operation the land and logistics for 90 million tons of crops per year by 2035, with as much as 70 million tons of that available for neighboring and other friendly trade partners, including the Middle East as well as Central Asia. For the most part, grain will flow toward China, with return cargo in the reverse direction.