Russian grain at a standstill after international grain traders flee

The Russian agricultural sector is in deep crisis due to the mass withdrawal of international grain traders, which is undermining the country’s export potential. According to the deputy of the State Duma of the Russian Federation Nikolai Goncharov, such giants as Cargill and Louis Dreyfus have left the Russian market due to political isolation and the status of “unfriendly states”. This has led to a catastrophic reduction in competition: if previously up to 400 traders participated in the export of agricultural products, now their number barely reaches 50, and 95% of exports are controlled by only five companies.

The abolition of export duties, on which Russian farmers pinned their hopes, turned out to be in vain. Goncharov admitted that this measure only pumps funds from the budget to state corporations, without solving systemic problems. Duties introduced to regulate prices have long lost their function and have become a burden for farmers, worsening their situation against the backdrop of a budget deficit.

The crisis has hit Russian farmers hard, unable to sell their crops due to the lack of a competitive market. Even increased grain processing cannot compensate for the losses, as Goncharov noted, “the damage to farmers is much greater.” Restoring a competitive environment by attracting traders from “friendly” countries also seems a distant prospect due to administrative barriers and economic instability.

This situation only deepens the decline of Russian agriculture, leaving farmers without prospects and the aggressor country without stable wheat exports.

Tags: Russia, export, wheat, agriculture trading