Russia scraps wheat, barley and corn export duties until year-end

Russia has reduced export duties on wheat, barley and corn to zero from September 1 through the end of 2026, Agroexpert reported, citing sources familiar with the decision. According to the sources, the decision has been agreed in principle but has yet to be formally documented. The sunflower oil export duty, meanwhile, will remain at its August level of RUB 7,748/t.

The removal of grain duties is expected to support Russian exporters and domestic grain prices, which have fallen significantly in recent weeks amid ample supply and difficulties moving the new crop to export markets. Before the suspension, the wheat export duty stood at RUB 787.5/t and the corn duty at RUB 406.5/t. ProZerno expects part of the difference to translate into higher prices for farmers, although FOB export prices could decline by around $3–4/t.

Market participants, however, say eliminating the duties alone will not be enough to restore exports. The main constraint remains limited shipping capacity in the Azov-Black Sea basin, which previously handled more than 5 mln tons of exports per month. These volumes cannot be quickly replaced by Baltic ports and other alternative routes due to limited port and logistics capacity.

SovEcon estimates that shipments through ports in northwestern Russia and the Baltic states could increase by only several hundred thousand tons per month. The suspension of duties could therefore improve exporters’ margins and provide some support to grain demand, but is unlikely to significantly alter trade flows in the short term.

Oilseed product exports remain another concern. Market participants are calling for export duties on sunflower oil and meal to be scrapped as well, as more than half of Russia’s exports of these products previously moved through the Azov-Black Sea basin. With a large harvest and restricted export capacity, analysts also warn of further downward pressure on domestic grain and oilseed prices.

Tags: wheat, sunflower meal, duties, Russia, sunflower oil, corn, barley