Russia's Grain Exports Halted by Ukraine Conflict
Russian grain exports are facing significant challenges due to the ongoing conflict between Russia and Ukraine. The Azov-Don Canal and the Kerch Strait have been severely impacted since July 10, causing a halt in navigation and subsequently affecting ports in Azov, Rostov-on-Don, and Taganrog.
Azov ports account for nearly 25% of Russia's grain exports, while Black Sea ports account for over 50%. The combined capacity of the three key grain terminals in Novorossiysk was about 26.1 million tons per year, which is approximately 50% of all Russian wheat exports.
The terminals were severely damaged on August 12, and their full operation has not been restored yet. As a result, purchase prices for grain in the Russian Federation have decreased by 20-25%. If the Black Sea ports are completely blocked, Russia will miss out on 30-35 million tons of wheat to world markets this season.