Kremlin trying to secure its Black Sea grain exports as Ukrainian strikes bite

Moscow is taking measures to minimize the effects of attacks on Black Sea facilities as international grain buyers worry about supply interruptions during the busiest export period, according to Reuters on August 24th. "Recurring assaults by Russia and Ukraine, both major grain exporters, on ports and vessels in recent weeks have closed grain depots and compelled ships to delay or cancel loadings for dozens of shipments during the peak export season," the report noted.

President Vladimir Putin admitted last week that Russia was facing challenges with its agricultural exports but assured there wouldn't be any shortages in global markets. The Russian leader claimed Russia intends to ship around 60 million tons of grain this season. Simultaneously, SovEcon consultancy projects Russian grain exports will marginally increase in August to 2.2 million tons, down from 1.95 million tons in July - a significant fall from the 4.5 million tons exported in August last year.

The Russian government is reportedly contemplating state grain acquisitions, extending subsidized loans, and subsidizing sales to counter major export setbacks. According to Russian Agriculture Minister Oksana Lut, the three biggest Russian grain terminals at Novorossiysk port have halted operations following damage. Russian exporters are therefore looking for alternate routes via the Baltic Sea, the Caspian Sea, and the Far East.