Russia cuts grain export taxes to 0% to address logistics issues

Russia has decided to reduce export taxes on wheat, barley, and corn to 0% until the end of the year. The Russian Ministry of Economy announced on September 2 that this decision is driven by the “need to restructure logistics.”

This move comes as shipping activities in the Black Sea and the Sea of Azov face increasing disruptions due to the ongoing conflict between Russia and Ukraine. Recent escalations in attacks on commercial vessels and seaports have hindered major export routes, particularly during the new harvest season. In August, Russian wheat exports were less than half of the volume recorded during the same period last year.

While Moscow may attempt to divert some goods to Baltic ports, current capacity is insufficient to replace the southern port networks. The 0% tax rate is intended to lower costs for exporters as they seek alternative transportation routes to manage the country's potential annual grain export of approximately 60 million tons.