Russia Halves Customs Duty on Grain Exports
· Bloomberg HT
Russia's Ministry of Economy has set the export duty on wheat, barley, and corn to zero until the end of 2026, following logistical disruptions in the Black Sea and Sea of Azov.
Duty Exemption on Grain Exports
Russia's Ministry of Economy announced the suspension of the variable export duty on wheat, barley, and corn until December 31, 2026, due to disruptions in shipments via the Black Sea and Sea of Azov. According to the Ministry's statement, the customs duty on grain products has been reduced to zero in line with the need to restructure logistics, while the export duty on sunflower oil has been frozen at August levels. This decision, implemented during the harvest season, aims to alleviate cost pressures on routes that account for more than 70% of the country's total agricultural exports.
Escalating Shipment Crisis in the Black Sea
The conflict between Russia and Ukraine, which together supply more than 25% of the global wheat supply, has targeted commercial vessels and ports, pushing wheat futures prices to their highest level in three years on international markets. Russia's wheat exports in August decreased by more than 50% compared to the same period last year. According to market research firm SovEcon, Russia's grain exports in September are expected to fall to their lowest level since 2010 due to the inoperability of ports in the region.