Russia’s Economy Ministry has fully suspended floating export tariffs on wheat, barley, and corn through December 31, 2026, following escalating military strikes on Azov and Black Sea shipping infrastructure. The policy response aims to relieve mounting margin pressures on exporters forced to re-route over 70% of outgoing grain trade amidst historic shipment drops.

The tax suspension follows severe logistics bottlenecks triggered by intensified attacks on commercial vessels and port terminals, which escalated global wheat futures to three-year highs. According to Russia’s Economy Ministry, the decision to freeze duties on wheat, barley, and corn at zero levels, alongside locking sunflower oil export tariffs at August rates, stems from the urgent need to restructure export logistics.

The disruption halted primary sea routes just as domestic harvests peaked, causing Russian August wheat exports to plunge by more than half compared to the previous year. Agricultural consultancy SovEcon projected September grain shipments to fall to their lowest level for that month since 2010.

By removing the floating tax mechanism, Moscow aims to offset soaring war risk insurance premiums and extended transit costs for trading houses redirecting volumes away from impacted Azov and Black Sea hubs.

Russia remains the leading supplier of key feed ingredients to Türkiye, accounting for the vast majority of its imported milling wheat, sunflower meal, and corn.