Russia may cancel grain export duties until the end of the year

Russia may make grain exports duty-free until the end of 2026 due to difficulties shipping grain through ports in the Azov-Black Sea basin. The Russian Agriculture Ministry is considering the initiative amid a sharp deterioration in the operation of the country’s main grain export route.

Ports in the Azov-Black Sea basin are the main gateway for Russia’s seaborne grain exports. The capacity of this route has recently been significantly reduced due to attacks on port infrastructure and navigation restrictions. In particular, strikes on Novorossiysk have already led to shutdowns of key grain terminals.

The possible cancellation of duties is intended to support Russian exporters and farmers facing higher logistics costs and reduced shipping capacity. The proposal involves introducing a moratorium until the end of the year on floating export duties on wheat, barley and corn.

The rates are currently revised weekly depending on indicative prices. At the same time, duties on some grains began rising again in August despite falling domestic grain prices. From August 19, the wheat export duty increased about 2.2-fold to RUB 721/t, while the corn duty stood at RUB 284/t. Combined with difficulties in shipping grain, this is putting additional pressure on Russian farmers and exporters, so a moratorium could partially improve export economics.

The initiative currently does not apply to oilseeds. Separate export duties remain in place for soybeans, rapeseed and sunflower seed, meaning the proposed changes currently concern grain exports only.

Problems with Russian exports have coincided with disruptions to grain shipments from Ukraine, increasing risks across the Black Sea region. The escalation has already supported global wheat prices, while prolonged supply constraints affecting the two largest Black Sea exporters could continue to maintain a risk premium in the global grain market.

Tags: Russia, corn, export, barley, wheat, duties