Commodity exchange trading between Russia, Pakistan might start with wheat, rice

MOSCOW. Sept 18 (Interfax) - The St. Petersburg International Mercantile Exchange (SPIMEX) and Pakistan-based KMAK Group have signed a memorandum of understanding on the development of exchange trading, the SPIMEX reported after a meeting of the Russia-Pakistan working group on trade and investment.

"Wheat is being considered as the Russian export commodity for the first transactions, and rice [is being considered as the] Pakistani import commodity. In addition, energy resources, other agricultural products, mineral fertilizers, forest products and primary metallurgical products are interesting as potential exchange commodities for Russia-Pakistan cross-border trading," the exchange said.

KMAK Group is now going through the process of accreditation on the SPIMEX. It will be assigned the role of non-resident broker for representing the interests of Pakistani businesses with which pilot exchange transactions are expected to be made.

Representatives of Pakistani companies informed the participants in the meeting about the results of preliminary efforts to work out issues with relevant authorities regarding the conclusion of cross-border transactions on the Russian exchange and their execution, the press release said.

The Russian participants in the meeting said the business community and authorities are set on intensive work aimed at developing trade relations between Russia and Pakistan. Its results are constantly monitored by the Russian government.

"The St. Petersburg exchange expects to become a channel for stable supplies of raw materials and products of Russian and Pakistani origin, establishing a foundation for settlements in national currencies," SPIMEX vice president Dmitry Chernyshev said in the press release.

The SPIMEX, the head office of which is located in Moscow, organizes exchange trading for oil products, crude oil, petrochemicals, natural gas, LPG, metals, forest products and construction materials, mineral fertilizers and agricultural commodities, as well as derivatives.

KMAK Group is an international conglomerate that works in key sectors of the economy, including real estate, construction, infrastructure development, mining, agriculture and international trade. The group operates in South and Southeast Asia, the Middle East, North America and Africa.