Russia considers suspending grain export taxes until the end of the year

It has been reported that the Russian Ministry of Agriculture is considering a moratorium on the variable taxes applied to wheat, barley, and corn exports until the end of the year. The move is reportedly being evaluated due to disruptions at ports in the Sea of Azov and Black Sea basins, where the majority of Russian grain shipments are handled.

According to a report by the Vedomosti newspaper, citing sources close to the grain market, the ministry plans to prepare the proposal in the near future. The grain damping mechanism, which has been in effect in Russia since 2021, provides for weekly changing taxes on wheat, corn, and barley depending on export prices.

Under the current system, the tax is triggered when the price of wheat exceeds $200 per ton, and the price of corn and barley exceeds $185 per ton. According to official statements, the tax revenues, calculated at 70 percent of the excess amount, are returned to the agricultural sector as subsidies.

The Ministry of Agriculture announced last week that the wheat export tax for the period of August 26-September 1 would be 1,012.1 rubles per ton. This rate represents an increase of approximately 1.4 times compared to the 721.1 ruble level that was in effect until August 25. During the same period, the barley tax remained at zero, while the corn export tax was increased from 285 rubles to 607.3 rubles per ton.

SHIPMENT DISRUPTIONS AT PORTS

It is reported that Russian grain exports have been affected by loading problems in the Sea of Azov and Black Sea basins since July 2026, when the new agricultural season began. Navigation restrictions covering some key ports and terminals in the Sea of Azov are said to have significantly slowed shipments along this route.

On the Black Sea side, it was noted that drone attacks on grain terminals at the Port of Novorossiysk have complicated operations. It was reported that the Novorossiysk Grain Terminal, which has an annual grain loading capacity of 8.5 million tons, has suspended its activities, and the Delo company has also halted operations at the KSK grain terminal for security reasons.

It was also announced that Russian Railways restricted loadings in the direction of Novorossiysk and Novorossiysk-export stations between August 13-22. These developments are increasing the pressure on agricultural producers and exporters along the logistics line, despite Russia's export potential.

In a statement in July, Russian President Vladimir Putin said that the country has the capacity to export at least 60 million tons of grain, arguing that the problems related to shipments would be resolved and that there would be no shortage in the global market.

News Source: 12punto