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Russia Signals Cheaper Grain Shipments to Friendly Countries

Russia Signals Cheaper Grain Shipments to Friendly Countries
Ukrainian farmers harvest grain in the Odesa region, south Ukraine, 23 June 2023 amid the Russian invasion. Kyiv and Moscow on 22 July 2022 signed a deal to resume Ukrainian grain exports from Black Sea ports which would ease an international food crisis. The deal was brokered by the UN and Turkey. On 17 May 2023, the deal that allows Ukraine to export grain across the Black Sea has been extended for two months. Russia had been threatening to pull out of the deal, saying Western sanctions were hampering its own agricultural exports. Russian troops on 24 February entered Ukrainian territory, starting a conflict that has provoked destruction and a humanitarian crisis. EPA-EFE/IGOR TKACHENKO

Russia may offer cheaper grain exports to countries that have not imposed sanctions, the latest sign that Moscow is using the nation’s food superpower status as a political tool.

The government could get the power to lower duties on commodities exports including grain and fertilizers to “friendly” countries, Prime Minister Mikhail Mishustin said in a televised speech on Thursday.

Russia is the world’s top wheat exporter and is shipping record volumes again this season, while its fertilizer deliveries are recovering to pre-war levels. It already adjusted the way its wheat-export tax is calculated in May, lowering the levy. The tax is currently at about $30 a ton, while traders sold Russian wheat to Egypt at $264 a ton — including freight — in the latest tender.

Russia Is Set to Be the Top Wheat Exporter Again This Season | Bumper harvest and high stocks are helping Russia ship big volumes

President Vladimir Putin last week promised to send free grain to six African countries that have strong ties with Moscow.

Russia’s State Duma is currently on holiday, so the measure is unlikely to be brought in until at least Sept 5.

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  • dmpotulo says:

    USA and its satellite countries had been using dollar to sanction everyone who disagree with their hegemonic power. These countries ought to taste their own medicine.

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