Russian Grain Exports Plummet Amid Black Sea Disruptions

Russian farmers are facing a severe decline in new-crop grain sales due to disruptions in export logistics.

The problems have emerged during the peak arrival of the new crop, when farmers need to clear storage facilities and sell their grain. Some regions are reporting congested elevators, queues for grain intake, and difficulties selling newly harvested supplies.

Russia's exports of major grains fell by around 38% year-on-year in July to about 2 million tons, while the decline exceeded 60% in the final ten days of the month. The most severe disruptions were initially concentrated in the Azov basin, but risks have now spread to key Black Sea export routes.

The situation is being further complicated by attacks on port infrastructure and commercial vessels in the Black Sea itself: a major grain terminal in Taman was hit in late July, while a Turkish cargo vessel was attacked near Novorossiysk in early August. Growing shipping risks are making it more difficult to secure vessels and are pushing up freight and insurance costs.