Russia cannot establish wheat exports due to informal Western sanctions. The supply of Russian grain in July and August fell to 6.3 million tons, which is 22% less compared to the same period of 2021, writes Bloomberg.
“We are faced with reputation risk or informal sanctions. This creates problems with the search for ships for the Russian Black Sea sector, and we see that some banks do not want to issue letters of credit for the supply of grain of Russian origin,” said Dmitry Rilko, general director of the institute The conjuncture of the agricultural market (Icarus).
His words are confirmed by other experts. It is difficult for Russian businessmen to find dry cargo loads for grain, some banks refuse to insure the goods.
Unlike Russia, Ukraine increases grain export due to an agreement on unlocking its ports. In August, 4.5 million tons of cereals and oilseeds were taken out. However, it is still unknown whether this will be enough to free the granaries for the new crop of 2023. Before the war, exports from the Black Sea ports of Ukraine usually amounted to 5-6 million tons of grain.