Russia was forced to transport grain across the North Pole amidst fighting in the Black Sea - "Russia Finances" is testing grain exports through the Arctic port of Murmansk, thousands of kilometers away from the fields where it is grown, as Ukraine's drone campaign has virtually cut off the traditional Black Sea route. On Wednesday, a large vessel in Murmansk began loading 29,500 tons of wheat for delivery to buyers in North Africa, the port's Telegram channel reported. To do this, facilities usually used for fertilizer processing were converted. This unusual detour route illustrates how the escalating struggle for control of the Black Sea has upended trade for Russia, the world's largest wheat exporter, and Ukraine, another major supplier, despite relatively high yields in both countries. These disruptions have led to higher costs for overseas buyers, while profits made by Russian and Ukrainian farmers have plummeted. The main problem is not just whether we can redirect a certain amount; the fact is that logistics will cost much more than shipments via the Azov-Black Sea basin, and someone will have to cover that difference, said Arady Zlochevsky, president of the Russian Grain Union. According to the railway company Rusagrotrans, Russian wheat exports between July and September fell by 38% compared to last year, despite a more productive season. Fastmarkets said that freight rates on Black Sea routes have doubled since mid-July, forcing importers to look for alternatives. Alternative routes cannot replace the southern ports. According to Zlochevsky, by the end of the year, Baltic terminals will not be able to compensate for more than half of the lost export volumes through the Azov-Black Sea.

Russia was forced to transport grain across the North Pole amidst fighting in the Black Sea - "Russia Finances" is testing grain exports through the Arctic port of Murmansk, thousands of kilometers away from the fields where it is grown, as Ukraine's drone campaign has virtually cut off the traditional Black Sea route. On Wednesday, a large vessel in Murmansk began loading 29,500 tons of wheat for delivery to buyers in North Africa, the port's Telegram channel reported. To do this, facilities usually used for fertilizer processing were converted. This unusual detour route illustrates how the escalating struggle for control of the Black Sea has upended trade for Russia, the world's largest wheat exporter, and Ukraine, another major supplier, despite relatively high yields in both countries. These disruptions have led to higher costs for overseas buyers, while profits made by Russian and Ukrainian farmers have plummeted. The main problem is not just whether we can redirect a certain amount; the fact is that logistics will cost much more than shipments via the Azov-Black Sea basin, and someone will have to cover that difference, said Arady Zlochevsky, president of the Russian Grain Union. According to the railway company Rusagrotrans, Russian wheat exports between July and September fell by 38% compared to last year, despite a more productive season. Fastmarkets said that freight rates on Black Sea routes have doubled since mid-July, forcing importers to look for alternatives. Alternative routes cannot replace the southern ports. According to Zlochevsky, by the end of the year, Baltic terminals will not be able to compensate for more than half of the lost export volumes through the Azov-Black Sea.