Russia may launch state grain purchases amid export disruptions

Russia’s Ministry of Agriculture is considering a package of support measures for farmers facing grain export difficulties due to shipping restrictions in the Sea of Azov and Ukrainian drone attacks on port infrastructure. RBC reported this, citing sources in the grain market.

According to the sources, at a meeting on August 12, the ministry proposed extending subsidized short-term loans for farmers in grain-surplus regions for up to one year. The measure would primarily target southern regions, where difficulties in moving grain have left producers struggling to repay loans.

Grain producer subsidies are also under consideration. According to one source, the government is also considering allocating additional funds to support farmers in Russian-occupied territories of Ukraine.

Another proposed measure is grain procurement interventions, under which the state would purchase part of the crop. According to a source, the state-owned United Grain Company (UGC), which is responsible for such operations, is already looking for available grain storage capacity.

Purchases of the 2026 grain crop for the state intervention fund are expected to remove part of the surplus supply from the market and help stabilize prices. UGC confirmed that preparations for interventions are underway but did not disclose potential purchase volumes.

In late July, Russia’s Union of Grain Exporters and Producers warned that due to the situation in the Azov-Black Sea region, the country could fall short of supplying foreign markets by 30–35 mln tons of wheat this season, equivalent to around 15% of global wheat trade.

Tags: export, grain, wheat, Russia, subsidies