Russia converts Baltic and Arctic terminals for grain exports

Russian companies are converting terminals handling fertilizers, coal and other cargoes at Baltic and Arctic ports for grain exports. The shift includes facilities in Ust-Luga and Murmansk, where part of the grain previously shipped through the Black Sea is expected to be redirected.

In the previous season, nearly 90% of Russia’s seaborne grain exports moved through Black Sea ports. Following disruptions along that route, companies have stepped up efforts to develop alternative export channels through the Baltic and Arctic.

One of the facilities being adapted is the privately owned Ultramar terminal in Ust-Luga, which has a stated capacity of 37 mln tons per year. The terminal, mainly used for mineral fertilizers, has already been converted to handle grain. Reuters reported that grain from Demetra is also being shipped through the facility.

Analysts estimate current grain-handling capacity at Russian Baltic ports at only 2–7 mln tons per year, compared with more than 60 mln tons at southern ports. However, converting terminals previously used for other cargoes could significantly expand Baltic grain export capacity without materially affecting fertilizer exports.

Russian Railways is also giving priority to grain shipments to Baltic and Arctic ports, which already benefit from state subsidies. The first 40 thsd tons of grain shipments by rail from the Stavropol region to Murmansk have been approved, potentially marking the start of a broader expansion of the new export route.

Tags: grain terminal, Baltic, Arctic, grain, grain export