Russia Slaps Higher Export Duties Amid Port Disruptions

Russia's grain export problems are intensifying due to damage and disruptions at its key Black Sea and Azov ports. The country's main hub, Novorossiysk, has been attacked, forcing all three major grain terminals to halt operations.

The corn export duty will increase from RUB 105 to RUB 284 per ton, while the wheat export duty more than doubles from RUB 326.6 to RUB 721.1 per ton for August 19-25. The barley duty remains at zero.

Russia's ability to compensate for lost shipments through the Sea of Azov is reduced, and quickly redirecting large volumes to the Baltic and other routes is not feasible. This combination of rising new-crop supply, shrinking export capacity, and a higher fiscal burden on wheat exports puts pressure on domestic grain prices.