Russia Considers Grain Purchases Amid Export Disruptions
Russia's Agriculture Minister Oksana Lut said her government is considering grain purchases to offset disruptions in exports, which have been severely impacted by drone strikes on port infrastructure. The minister announced measures to support local farmers, including loan extensions and sales subsidies.
The three largest Russian grain terminals at the Black Sea port of Novorossiysk have suspended operations after sustaining damage. Russia has harvested 75 million metric tons of wheat so far, according to Lut. However, escalating tensions in the Black Sea and strikes on ports have raised concerns about global grain supplies.
Russia and Ukraine account for more than a quarter of global wheat exports, making their hostilities at the height of the harvest season particularly concerning. The disruption is expected to significantly impact Russia's wheat exports, which are predicted to fall by more than half in August to 1.8 million to 2.2 million metric tons.