Russia's Azov Sea grain export limits trigger European wheat price surge

Russia has imposed restrictions on ship movements in the Azov Sea after a series of attacks that damaged 13 Russian vessels, including ten tankers, on 10 July. Commercial ships may still transit the sea, but entry and exit via the Kerch Strait and the Don‑Azov Canal are prohibited, halting traffic on the key grain export route that carries about a quarter of Russia’s wheat shipments.

European wheat futures on Euronext rose up to 4%, reaching a six‑week high as markets react to the uncertainty. Ukraine’s 414th Drone Systems Brigade claims to have struck 76 Russian ships in the Azov Sea, targeting the “shadow fleet” of tankers it says are used to bypass sanctions and supply fuel to occupied Crimea. Reuters confirmed some of the tanker hits, though only a portion of those vessels appear on international sanctions lists.

In response, Russian authorities have temporarily stopped vessel traffic through the Don‑Azov Canal and are not accepting new transit applications through the Kerch Strait. No official Russian comment has been released. Analysts warn that prolonged restrictions could further disrupt global wheat and sunflower‑oil supplies, though no major grain shipment interruptions have been reported yet.