Russia Redirects Grain Exports Through Expanded Rail Network

Russia has expanded its list of subsidized rail routes for transporting grain to export ports due to disruptions in shipments via the Black Sea. The new preferential routes cover ports in the Krasnodar region, northwestern Russia, and the Far East.

The Federal Agency for Railway Transport's decision allows grain from 17 regions to be eligible for subsidized transportation to port stations in the Krasnodar region and northwestern Russia, including further exports via the Baltic Sea. Rail transportation costs will be compensated from the federal budget and will not be charged to shippers.

Separate preferential routes have been introduced for the Rostov region, allowing grain, sunflower meal, and cake to be transported to ports in the Krasnodar region and northwestern Russia. Grain from five Siberian regions will also be eligible for subsidized transportation to ports in the Far East.

Russia is trying to redirect some cargoes through the Baltic and other routes due to a decline in export capacity through the Azov-Black Sea basin. However, their capacity is significantly lower than that of the traditional southern corridor, making alternative routes only partially effective if disruptions at Black Sea ports persist.