Russia plans state grain purchases as export disruptions hit seaport shipments

Russian authorities are exploring state grain purchases to address major export disruptions, as reported by Interfax, citing Agriculture Minister Oksana Lut on August 24. The ministry is contemplating support measures for local farmers, such as loan extensions and sales subsidies, amid shipping and logistical challenges caused by drone strikes. The three primary Russian grain terminals at the Black Sea port of Novorossiysk have been forced to halt operations following damage.

With logistical difficulties mounting, the minister stated that Russia has harvested 75 million metric tons of wheat so far. The escalating tensions in the Black Sea and attacks on port infrastructure have heightened concerns about global grain supplies. Russia and Ukraine together contribute more than a quarter of the world's wheat exports, and hostilities have intensified during the peak harvest season. Ukrainian agricultural exports continue to be hindered by persistent Russian attacks on ports in the Odesa region.

Experts at Russia's SovEcon predict Russian wheat exports will drop by more than half in August, falling to 1.8 million to 2.2 million metric tons from 4.5 million metric tons in the previous year, due to the closure of three Novorossiysk terminals. Russian media reports suggest the Agriculture Ministry aims to swiftly reroute grain shipments through alternative ports on the Baltic Sea, Caspian Sea, and the Far East.

However, these longer routes result in higher logistics costs and cannot entirely compensate for the lost deep-water capacity in southern Russia.

Meanwhile, Ukraine is experiencing a sharp decline in sunflower seed purchase prices due to Russia's maritime blockade and regular attacks on Odesa region ports. Prices fell by over 40% to 19,000-20,000 hryvnias per metric ton in August 2026 alone. The export difficulties have compelled sunflower oil processing plants to cut back on purchases, pushing Ukrainian agricultural producers towards unprofitability before the harvest season.