Russian Rerouting Efforts Fail as Grain Exports Struggle

Russia's efforts to reroute grain exports from the Black Sea have failed, according to consulting firm Kpler. Between July and September, five alternative ports managed to increase shipments of grain and oilseeds to only 1.3 million metric tons.

This is a fraction of the approximately 12 million metric tons that Russia's main Black Sea ports can handle during the same period.

The Russian government attempted to encourage use of these new routes by waiving export duties on grain and introducing subsidies for rail transport from southern regions to the Baltic Sea.

However, this has only increased daily rail shipments of agricultural products to the Baltic ports of Ust-Luga and Vysotsk by 465%, but such trade remains economically unfeasible due to higher costs.

According to estimates by analysts at Ifchor Galbraiths, shipping grain to Egypt via the Baltic Sea costs 30-35% more per metric ton compared to Black Sea routes.