Russia to subsidize grain shipments to alternative ports amid attacks in the Sea of Azov

Russia plans to subsidize rail transportation of grain to alternative ports after exports through the Sea of Azov effectively came to a halt. The move follows an escalation of Ukrainian drone attacks on shipping that has disrupted exports from the world’s largest wheat exporter, according to Bloomberg.

Shipments from Sea of Azov ports, which normally handle about 25% of Russia’s grain and oilseed exports, have been suspended for the past 11 days. The disruption follows Ukrainian drone strikes that damaged and sank vessels transporting grain to global markets.

To accelerate the rerouting of exports, Russia’s Ministry of Agriculture has proposed covering 90% of rail freight costs for grain shipped from the Rostov region to Black Sea and Baltic Sea ports. According to a government notice sent to traders, the subsidy will apply to both loaded grain wagons and returning empty wagons and containers.

Bloomberg reported that traders have already begun applying for subsidized shipments to the Black Sea port of Novorossiysk as well as the Baltic ports of Vysotsk and Ust-Luga. Earlier this week, the agency also reported that Novorossiysk had introduced an informal nighttime navigation ban following increased Ukrainian drone attacks, affecting shipments of grain and vegetable oils.

Russia remains the world’s largest wheat exporter, with 48 mln tons exported in the 2025/26 marketing year, according to USDA estimates. At the same time, the war continues to reshape regional logistics: Ukraine has intensified strikes on Russian refineries, ports and vessels, while Russia continues attacking Ukraine’s port infrastructure, increasing risks for global grain trade.

Tags: war, rail transportation, Russia, subsidies, export, ports