Russia Redirects Grain Exports Amid Black Sea Disruptions

Russia's grain exports are shifting from the Black Sea to Baltic and Arctic ports due to disruptions caused by drone attacks. The country is repurposing terminals like Ultramar, Modul, and BSMZ at Ust-Luga, St. Petersburg, and Murmansk to handle grain shipments. This move aims to boost capacity amid disruptions in the main export corridor.

The shift includes converting fertilizer and coal terminals to grain handling facilities. For instance, Ultramar, a private terminal with a declared capacity of 37 million metric tons, is now handling grain shipments after a rapid adaptation. Rail applications for grain deliveries to the terminal in September total about 260,000 metric tons.

Murmansk commercial sea port, which usually exports coal, ore, and metals, plans to start grain exports in October. The port's ability to handle large Panamax-class vessels means the increase in seaborne shipping costs is unlikely to be substantial. A first shipment of 40,000 tons of grain by rail from the Stavropol region to Murmansk has already been agreed and approved by Russian Railways.