Putin says Russia and Bahrain to set up wheat trading hub

Russia, the world's largest wheat exporter, and Bahrain plan to set up a wheat trading hub in the Persian Gulf, Russian President Vladimir Putin said on Friday.

Putin was speaking at an economic forum in St Petersburg on a panel alongside Bahrain's National Security Adviser Nasser bin Hamad Al Khalifa.

"We, along with our friends from Bahrain, are planning to create a whole hub for the supply of wheat from Russia," Putin said.

"I would like to remind you that Russia confidently holds the first place in the world in wheat sales on the global market. Many countries in the Arab world are very interested in this. Step by step, we will move in this direction," Putin said.

Egypt, Saudi Arabia, and Algeria rank among the biggest buyers of Russian wheat, which is exported from Moscow's Black Sea ports.

Direct supplies of Russian wheat often face logistical difficulties and payment issues because of Western sanctions on shipping and Russian banks.

Agriculture Minister Oksana Lut said earlier on Friday that Russia aims to export 45 million tons of wheat in the coming marketing season which starts on July 1, slightly more than in the current season.

(Reporting by Vladimir Soldatkin, writing by Gleb Bryanski Editing by Andrew Osborn)