One of Russia’s key grain-producing regions declares state of emergency as exports stall

Russia’s Rostov region, which accounts for around 10% of the country’s grain production, declared a state of emergency from August 28 amid mounting difficulties with grain shipments. The situation has been exacerbated by stalled export loadings, accumulation of the new crop and falling domestic prices.

Logistics problems intensified after operations at Azov Sea ports were halted in mid-July following drone attacks. These terminals previously handled up to 1.5 mln tons of grain exports per month. Major grain terminals on the Black Sea were also damaged in August, further restricting Russia’s export capacity.

As a result, Russia’s wheat exports in August are estimated at just 1.9 mln tons, the lowest volume for the month in 16 years. This is 2.3 times lower than in August last year and 2.6 times below the five-year average.

Limited export capacity has led to a build-up of grain on the domestic market and increased pressure on prices. Class 4 wheat prices in European Russia have fallen to RUB 8,575/t, down 35% from the start of the season. Overloaded storage facilities are also forcing farmers to accelerate sales of the new crop.

Options for redirecting significant grain volumes through the Baltic Sea and northern ports remain limited due to insufficient capacity and more complicated logistics. Against this backdrop, Russian authorities are considering alternative export routes, including northern sea corridors.

Tags: Russia, grain, logistics