COFCO eyes Russian facility

MOSCOW, Russia (Reuters) — Top Chinese grain trader COFCO is in talks about buying a stake in a grain export terminal in the Russian port of Novorossiysk as part of its expansion in Europe, sources said.

COFCO is understood to be in talks about buying shares equalling about 25 percent in the KSK deep water grain terminal in Novorossiysk, three sources said.

Talks are being held with the terminal owner, Russian company Deloports Ltd.

“Such a deal could give COFCO greater capability to export Russian grain in large volumes to the big Middle Eastern markets,” one source said.

“Novorossiysk is especially important for wheat exports to Egypt.”

COFCO has greatly expanded its European grain trading presence in recent years, taking over Dutch trader Nidera in 2017 and building up a major European trading hub.

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