Russia Considers Scrapping Grain Export Duty Amid Black Sea Shipping Disruptions

The Russian government is considering suspending its grain export duty due to disruptions in Black Sea shipping caused by Ukrainian drone attacks. According to Vedomosti, a leading business newspaper in Russia, two sources on the grain market have confirmed that the government is contemplating scrapping the duty until at least the end of this year.

The duty was implemented in 2021 to protect the domestic market against price spikes, with the weekly recalculation being 70% of the difference between the government-set basis price and the market price. However, due to the abundance of grain from the 'new harvest' and difficulty in transporting it to export markets, the domestic wheat price has fallen.

The Russian farmers claim that the export duty is reducing the profitability of their wheat production, with the weekly recalculation rising to 1,012 Russian roubles ($11.98), the highest level since June 2025. The government's decision comes as Russia and Ukraine have launched a series of 'tick-for-tick' attacks on ports and vessels, forcing grain terminals to close and shippers to delay or cancel cargo loadings during the peak export season.