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. Last Updated: 07/27/2016

Online Grain Exchange to Be Unveiled

The administration of the farming region of Oryol and an investment group, Russkiye Fondy, have agreed to start an Internet grain exchange and will display it Friday at a fair in Oryol, the partners said Wednesday.

The two said in a statement that Oryol Governor Yegor Stroyev, who is also the speaker of the Federation Council, and the investment group had signed the agreement to launch the exchange May 5.

It will be known as MTS Zerno, Russian for Inter-Regional Trading System Grain, and the statement said regions of the Russian Federation, of which there are 89, would participate in the project. The statement listed its goals as follows:

- organization of a central forum for exchanging market information and for trading grain in Russia on the Internet;

- opening the market for producers and sellers of grain and grain products to the federal level instead of just the local level;

- centralizing the system of grain sales, including by insuring risks.;

- posting analytical material to allow international standards to be achieved in production and to introduce a unified standard for all agricultural enterprises, thus making the sector more attractive for foreign investors.

"Observing a unified standard in the work of agricultural enterprises and centralizing the sales system will effectively give grain the status of an exchange-tradeable commodity," the statement said.

"This will allow the establishment on the market of a new class of financial instruments: futures trade in grain, credits guaranteed by grain and the sale and purchase of grain on an exchange."