Russia Expands Baltic Ports to Target New Grain Markets

According to officials and executives, Russia, the world's top exporter of wheat, is developing its ports in the Baltic Sea in an effort to reduce reliance on traditional Black Sea routes and increase agricultural exports by 50% by 2030.

Tradologie.com is a user-friendly SaaS digital platform and your streamlined solution for B2B wheat procurement and sales. Connect with global bulk wheat buyers or bulk wheat sellers, bypass middlemen for higher profits, and secure the best bulk prices effortlessly. Simplify your wheat exports or imports with Tradologie.com.

Russian Wheat Exports Expansion

In an effort to diversify from its traditional grain markets in North Africa and the Middle East, the nation, which exported at least 72 million metric tons of grain in the 2023-2024 season, is exploring new markets in Latin America and Africa.

For decades, the country has relied on its Black Sea ports to handle its booming agricultural exports, but due to the ongoing conflict with Ukraine, where both sides frequently strike each other's infrastructure and facilities, shipping in the region has become risky.

At an industry gathering in Sochi, southern Russia, Ksenia Bolomatova, deputy head of state-controlled agricultural conglomerate OZK, which owns several Black Sea terminals, said, Last year with its record harvest showed that with the pace of loadings for exports, we do not have enough capacity.

In the last 18 months, Russia has opened two major ports, Vysotsky and Lugaport, in the Gulf of Finland, near President Vladimir Putin's hometown of St. Petersburg.

While Vysotsky shipped its first grain in April 2023, Lugaport started operations in June of this year and, according to its owner Novotrans, is expected to reach a capacity of 7 million tons by early 2025.

The two ports will have the capacity to handle up to 15 million tons of agricultural exports, including grain, annually, according to Dmitry Rylko of the IKAR agricultural consultancy. 

That amounts to 25% of the 60 million tons of grain that Russia is expected to export in the 2024-2025 season.

Additionally, a 5 million-ton grain terminal at Primorsky Port is being planned by the private firm Primorsky UPK.

Port Expansions

Aiming to solidify the nation's standing as an agricultural superpower alongside the US, China, and Brazil, Putin set a goal to increase agricultural exports by 50% by 2030.

Over the past ten years, Russia has emerged as the global leader in the export of wheat, corn, barley, and peas; however, shipping capacity constraints may limit future growth.

Following record harvests over the past two years, several Russian ports have announced plans to increase capacity. It is anticipated that the Baltic Sea terminals will grow more quickly.

In an email, Novotrans stated, The expansion of the Baltic Sea terminals' capacity is a question of economic and transport security and sovereignty.

Thus far, there have been no significant disturbances to Russian trade and shipments in the Baltic, where 96% of the coastline is owned by NATO members, including Sweden and Finland.

Economic Appeal

In the 2023-2024 season, Russia shipped 62 million tons of grain by sea, 90% of which exported via the Black Sea and were destined for markets in the Middle East and North Africa. This share is set to fall as Baltic Sea infrastructure grows.

Based on publicly available data, it was calculated that Baltic Sea ports loaded 1.5 million tons of grain last season, a threefold increase from the previous season but still only 2.4% of total Russian exports.

The Baltic region offers numerous logistical benefits for the export of grains, according to Darya Snitko, vice president of Gazprombank, one of the biggest banks in Russia and a major lender to farmers. The capacity of Baltic terminals to handle larger ships, according to her, should contribute to overall cost savings.

If you are a wheat importer wishing to import wheat in bulk or a wheat exporter willing to export bulk wheat, then Tradologie.com is the right platform for you.

Tradologie.com facilitates bulk agrocommodity sales and procurement across the globe. Through tradologie.com's interface, buyers can avail the best qualities of agro-commodities in bulk at negotiable rates.

The transaction-oriented platform has 700,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 100 countries.

To register as a seller, click here. To register as a buyer, click here.

To stay updated with the latest happenings in the agro-trade industry, follow

Tradologie.com across all social media channels.

REFERENCE- theprint.in