Russia's Grain Exports Paralyzed by Ukraine Drone Attacks

Russia's grain exports have come to a standstill due to Ukraine's drone attacks on its largest commercial Black Sea port, Novorossiysk. The city has been a major hub for Russian exports since the 19th century and handles up to a third of Russia's grain exports.

According to Andrei Sisov, head of SovEcon, operations at several key terminals have halted due to Ukrainian attacks, including Novorossiysk Bread Products Plant and KSK. This has blocked out good wheat harvests in Ukraine and Russia from accessing the global market, with Xiaoyi Deng from Argus Media stating that both countries 'struggled to work with alternative infrastructure', such as Baltic ports or the Danube River.

The situation regarding oil exports is not quite as dramatic but frequent disruptions are affecting shipments. The Sheskharis terminal halted loadings on August 14, but resumed two days later. However, damage to infrastructure and strikes on vessels have discouraged ships from calling at major targets, with Isaac Levi from CREA stating that 'Russia can reroute barrels, but it cannot reroute infrastructure'.