The FINANCIAL -- According to official sources, ratification of the agreement on accession of Russia to the World Trade Organization, scheduled for July 2012, may essentially "warm up" the prices for sunflower seed and sunflower oil in Russia.

Thus, the agreement includes a series of commitments Russia, including reduction of the export duties on sunflower seeds from the existing level of 20% to 6% within 4 years since the date of accession.

According to market operators, there are several scenarios for development of the situation in Russia after the reduction of export duties for sunflower. However, the most obvious is the fact that the prices will rise rapidly for both the oilseed, and by-products.

Exports of sunflower will probably stay at the same level, due to high demands of the processing industry on the domestic market. Intense competition for sunflower seed volumes in the country will be the incentive, which will drive the price. The ratio of exported sunflower seed and oil may reach 20/80 or 15/85. Kazakhstan and Turkey will stay the main buyers of Russian sunflower.

The Government of Russia will return to the issue of reducing the duty in six months only, by which time the situation may radically change.

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