Russia Declares State of Emergency Over Blocked Grain Exports

The Russian region of Rostov has declared a state of emergency due to blocked grain exports. The authorities cited Ukrainian strikes on logistics infrastructure as the reason for the suspension of port operations and disruptions to shipping in the Azov-Black Sea basin.

The regional state of emergency, which came into force on August 28, affects almost a quarter of Russia's wheat exports, which previously passed through the ports of the Sea of Azov. The two largest grain terminals in Novorossiysk ceased operations on August 12.

Farmers are selling wheat below cost price due to the disruptions, with some producing feed wheat for around 5,000 roubles per tonne, while production costs stand at 10,000 roubles. The average monthly price of fourth-grade wheat fell by 36.3% over the month.

Russian authorities are looking for ways to minimize the impact of the attacks and ensure grain shipments go ahead. Kremlin spokesman Dmitry Peskov stated that Moscow is seeking solutions to the problem.