Ukrainian Drone Strikes Hit Russian Grain Exports Hard

Ukrainian drone strikes have severely impacted Russian grain exports, halting navigation along the Azov-Don Canal and Kerch Strait since July 10. This has led to a complete stoppage of grain shipments at ports in Azov, Rostov-on-Don, and Taganrog, with the ports of Azov accounting for nearly 25% of Russian grain exports.

The successful strike on August 12 targeted the Novorossiysk port, crippling three key grain terminals: KSK, Novorossiysk Grain Terminal (NGT), and Novorossiysk Bakery Products Plant (NBPP). The combined capacity of these terminals is approximately 26.1 million tons per year, or 50% of all Russian wheat exports.

As a result, grain purchase prices in Russia have decreased by 20-25%. If the Black Sea ports remain blocked, Russia may fail to supply 30-35 million tons of wheat to global markets this season, exceeding the total export of grains and legumes from Russia last year.