RUSSIA – VTB Bank, one of the leading universal banks of Russia has reached an agreement to acquire a grain terminal from Novorossiysk Commercial Sea Port (NSCP), a leading commercial sea port operator for an undisclosed sum.

The deal will enable the VTB bank have more control over Russia’s main deep-sea grain export hub.

The state-controlled VTB Bank already owns a stake in another grain terminal at the Black Sea port of Novorossiisk, which ships a significant amount of Russia’s grain exports.

According to VTB, the deal to buy 100% of Novorossiysk Grain Terminal, one of Russia’s largest port terminals for the transhipment of grains, has been approved by Russian regulators and is expected to close in the second quarter of 2019.

Novorossiysk Grain Terminal is a complex for trans-shipment of grains and oilseeds in the port of Novorossiysk and is one of the country’s largest port terminals for the trans-shipment of grain for export.

NCSP Group is the largest port operator in Russia by cargo turnover.

In August last year, VTB Bank bought a 10.93% stake in Novorossiysk Grain Plant, one of the largest grain terminals in Russia.

Following the transaction, VTB acquired a 33.18% stake in Novorossiysk.

Novorossiyk’s main activities include grain storage, processing, loading and unloading activities in the seaport, and loading and unloading activities in the railway.

The terminal has a trans-shipment complex with a capacity of 1,600 tonnes/hour, 12 granaries with a total area of 16,756m2 and two elevators with a storage volume of 140,000 tonnes.

The company’s facilities are in the port of Novorossiysk on the Russian coast of the Black Sea.

Russia is the world’s largest wheat exporter and the country ships a significant part of its grain exports from the two terminals at Novorossiisk.

In November 2018, Russia’s agriculture ministry said it expected grain exports in 2018-19 at 38 to 39 million tonnes, up from its projection of 35 million tonnes in September.