Rostov Region Agricultural Producers Face Disruptions in Export Logistics

Russian agricultural producers in the Rostov region are facing severe difficulties due to disruptions in export logistics in the Azov-Black Sea basin. The diesel fuel shortage has led to losses during the harvest, and purchase prices for grain are below production costs, according to farmers. Maritime exports from southern Russia have faced problems, and shipments through the Baltic or Far Eastern ports seem unrealistic, analysts indicated.

Farms in the region have harvested 13.6 million tons of early grains and legumes this year, but the opportunities for exporting these products to foreign markets have significantly decreased due to the current situation in the Azov-Black Sea basin and the operation of ports, said Vyacheslav Vasilenko, Deputy Chairman of the Legislative Assembly and head of the committee on agricultural policy. The suspension of grain terminal operations in Novorossiysk after drone attacks will lead to a significant reduction in grain exports and increase the risks of bankruptcy among agricultural producers against the backdrop of constantly falling grain prices.

Regional deputies proposed extending the preferential lending terms for agricultural enterprises for another year, providing a deferral on leasing payments, purchasing 5 million tons of wheat for the intervention fund at a price of no less than 15 rubles per kilogram, and introducing restrictions on the bankruptcy of agricultural producers or establishing a moratorium on such procedures until December 2027.