Russian Delo Group proposes grain hub, flour milling facility in Oman
Establishing processing in the country would allow for the delivery of small, ready-to-sell batches directly to consumers.
OMAN – Delo Group, a Russian transport and logistics holding company, has proposed establishing a grain hub and flour-milling facility in Oman, positioning the Sultanate as a regional processing and logistics centre serving the Middle East, East Africa, and South Asia.
The proposal was made during a recent visit by a Russian delegation to Oman, where Sergey Shishkarev, founder and co-owner of Delo Group, outlined plans to move beyond bulk grain exports and invest in local processing capacity.
According to Mr. Shishkarev, Oman imported around 570,000 tons of grain over a three-year period through Delo Group’s KSK grain terminal in Russia, which has an annual handling capacity of 10.5 million tons.
Mr. Shishkarev said establishing flour milling and grain processing operations in Oman would enable the delivery of smaller, ready-to-sell batches directly to end users, improving supply chain flexibility and responsiveness to market demand.
This approach could be particularly relevant for food manufacturers, bakeries and distributors across the wider region, where demand for reliable and diversified grain and flour supplies continues to grow.
According to Sergey Shishkarev, the proposed grain hub is intended to serve not only Oman but also other markets across the Middle East, East Africa and South Asia.
“I’m sure you could help us organize our mutual settlements; there are certain difficulties,” he said, noting that he had already discussed the issue with representatives of the African Development Bank.
He added that Oman’s legal and financial framework offers advantages for structuring cross-border trade and financial settlements.
Beyond grain handling and milling, Delo Group also sees Oman as a strategic location for a broader container and cargo hub.
Mr. Shishkarev said the Sultanate has the time to create confident, promising competition for the UAE by developing its port and logistics infrastructure.
He highlighted Oman’s geographic position. “The Persian Gulf countries are blocked by the Strait of Hormuz, so you’re effectively in the Indian Ocean,” he added.
This positioning, he noted, offers potential advantages for global shipping routes, particularly for trade flows linking Asia, Africa and Europe.
Delo Group has indicated its readiness to participate in both the design and analysis of a future cargo and container hub in Oman, suggesting a long-term commitment that goes beyond grain trade alone.
For Oman, the proposal aligns with broader efforts to strengthen food security, diversify the economy and expand value-added processing within the agri-food sector.
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