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  • By Lynda Kiernan-Stone, Global AgInvesting Media

Louis Dreyfus Expands Russian Footprint with Azov Grain Terminal Acquisition

Louis Dreyfus Commodities BV has expanded its footprint in the Russian grain sector with the acquisition of a grain terminal on the Don River in the country’s Rostov region for an undisclosed amount.

The terminal, consisting of two berths and six silos and will be used for the handling and transportation of grain on river and sea vessels, and will have an initial capacity of 500,000 tons, which will eventually be increased to 1 million tons.

Louis Dreyfus has operated in Russia for more than 50 years, and in the company’s 2014 annual report it said that the impact of the recent Russian ban on Western imports was ‘limited’, adding that the group was able to manage its exposure to the difficulties in the region.

Commenting on the acquisition in a statement, Cesar Soares, regional head of grains for Europe and the Black Sea for Louis Dreufys stated that the move is “an important first step towards developing new alternatives in logistics, considering that small port flows account for a big part of total grain export volumes in Russia.”

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