Shipping Restrictions in Sea of Azov Affect Russian Grain Exports
Impact of Sea of Azov Shipping Restrictions on Russian Grain Trade
Current Security Measures and Shipping Limitations
MOSCOW, July 13 - Shipping in the Sea of Azov, the route for a quarter of Russia's grain exports, remained restricted on Monday for security reasons following Ukrainian attacks on tankers and other commercial vessels in the area, three industry sources said.
The restrictions to shipping entering and exiting the sea went into force on Friday, Reuters reported, sending Euronext wheat up as much as 4% to a six-week high. Russian authorities have not formally announced the curbs, the sources said.
One source told Reuters commercial vessels could move freely in the Sea of Azov but could not enter or leave through the Kerch Strait, which links it with the Black Sea, and the Azov-Don channel, a navigable waterway linking the Don River with the Sea of Azov.
Russia's agriculture and transport ministries did not respond to a request for comment.
Effects on Grain Exports and Market Reactions
Russia's Position as a Grain Exporter
WORLD'S LARGEST GRAIN EXPORTER
Grain shipments from Russia, the world's largest grain exporter, usually decrease in the months ahead of the harvesting campaign.
Export Forecasts and Seasonal Trends
The Sovecon consultancy forecast that grain exports in July would be about 2.3 million metric tons, compared with 2.7 million in June. In peak exporting months, shipments exceed 5 million metric tons.
Russia has started harvesting new crops in southern regions but the new grain has not yet arrived in the seaports, and there have been no reports yet about any major disruption to the grains trade because of the restrictions.
Government and Industry Response
Anticipated Discussions and Security Council Involvement
Another one of the sources said the issue was expected to be discussed this week at the country's Security Council, chaired by President Vladimir Putin.
Nature of the Restrictions
A third source said that the traffic through the Sea of Azov was restricted due to security concerns but not fully stopped, as two other sources said.
All three sources, who work in the grains and energy industry, spoke on condition of anonymity. They said the restrictions have so far been communicated verbally and there were no documents confirming them.
Regional and Geopolitical Context
Strategic Importance of the Sea of Azov
Russia's leading grain-producing regions, Rostov and Krasnodar, lie along the Sea of Azov. The country's second-largest port in the Black Sea region is located on the Kerch Strait.
Recent Attacks and Ongoing Risks
Ukraine attacked 13 Russian vessels in the Sea of Azov on July 10, including 10 tankers.
Global Grain Trade Concerns
Many analysts and international organisations have warned about the risks to the global grains trade from the war in Ukraine because the Black Sea is used by both Ukraine and Russia for grain exports, although there have been no major disruptions during the four-and-a-half-year conflict.
(Reporting by Reuters;Editing by Helen Popper)
