Russia redirects sunflower exports via the Caspian, but logistics costs are 25–35% higher

Russia is increasingly redirecting sunflower exports from traditional Black Sea routes towards the Caspian as shipments to the European Union decline and demand shifts towards Asia and Africa. According to industry estimates cited by the source, the Caspian transit corridor’s share of shipments has increased to 15–18%, although alternative logistics cost exporters 25–35% more.

The geography of Russian sunflower exports has changed significantly in recent years. In 2022, EU countries, particularly the Netherlands, Spain and Italy, accounted for up to 48% of shipments, while their share fell to 10–12% in the 2024/25 season. More than 80% of exports are now directed to Asian and African markets, including India, China, the UAE, Egypt and Algeria.

The Caspian corridor, involving the port of Astrakhan and routes via Turkmenbashi and Iran, has emerged as one of the alternative export channels. Previously used mainly as a backup route, its importance for Russian agricultural exports has increased amid constraints affecting traditional maritime logistics.

However, the shift is pushing transportation costs higher. According to the source, the logistics premium compared with traditional Black Sea routes amounts to 25–35%, while delivery times have increased to 10–14 days. Additional costs are associated with freight, insurance and the need to restructure supply chains.

Further growth in shipments via the Caspian is constrained by port and railway capacity. The corridor is currently estimated to be capable of handling around 30 thsd tons of cargo per day, making the expansion of port and transport infrastructure an important factor for further redirection of Russian agricultural exports.

Tags: Russia, export, sunseed