Russia Suspends Grain Duties as Ukraine Strikes Black Sea Ports

The Ministry of Economy of the Russian Federation suspended floating export duties on wheat, barley, and corn through December 31, 2026. The move aims to restructure logistics after Ukrainian attacks on Black Sea and Azov Sea shipping routes idled primary export paths. August wheat exports dropped by more than half compared to the previous year, with September forecasts predicting the lowest levels since 2010.

President Vladimir Putin stated that a 40-day strike campaign ordered by President Volodymyr Zelenskyy damaged approximately 100 Russian ships and caused economic damage equivalent to 1% of Russia's GDP. While Putin characterized the damage as not critical, Russia cannot shift the seasonal volume of 60 million metric tons to Baltic ports due to capacity limits.

Simultaneously, Russia has targeted Ukraine's remaining functional ports, crops, and farm equipment. Between August 1 and 18, Ukrainian exports fell to 20 percent of normal levels. Alternative routes via the Danube River remain limited by drought and Russian attacks. Mercy Corps has called for a new grain deal to prevent a worldwide food shock and protect Ukrainian farmers who face financial ruin due to storage shortages and plummeting prices.