Russia is looking for new ways to export grain through Abkhazia — Bloomberg

The Russian grain industry is seeking alternative ways to transport wheat due to restrictions on operations at Black Sea ports. One possible route is the small port of Ochamchira in Abkhazia—a region of Georgia supported by the Kremlin. According to the publication, the plan is to ship the wheat to Turkey in containers.

Wheat and other agricultural products are slated to be transported from Ochamchire to Turkey in containers. This port has limited capacity, and transporting grain in containers is both expensive and unusual. This method is typically used for other products, such as high-value spices or perishable bananas.

Russia accounts for about one-fifth of global wheat trade, and about 90% of exports were shipped through its Black Sea ports. The intensification of hostilities in the region effectively halted grain shipments from key hubs in Ukraine and Russia, which in August led to a spike in wheat prices to a three-year high and forced the search for new transport routes.

For Russia, this meant utilizing the Arctic port of Murmansk, as well as ports on the Baltic Sea. Grain also began to be transported by rail to the Far East. Currently, these alternative options are insufficient to meet the necessary transportation volumes.

Abkhazia seceded from Tbilisi in the 1990s, but most countries recognize it as part of Georgia. Russia recognized its independence in 2008, following a brief war with Georgia. Construction of the container port in Ochamchira was completed last year with financial support from Russia—as part of Moscow’s efforts to diversify its logistics network in the Black Sea.

Grain is typically transported on bulk carriers—ships designed to carry bulk cargo, with a carrying capacity that can exceed 100,000 metric tons. According to freight experts at Kpler, a standard 20-foot container (6.06 meters) can hold about 23 metric tons of grain, but loading it requires additional time and expense.
 

In recent months, the transport of wheat in containers has become more widespread. This trend has been driven by subsidies for rail transport in Russia, as well as a sharp drop in domestic wheat prices caused by a buildup of unsold grain on farms. These conditions have helped partially offset the high cost of container shipping.

Bloomberg reports on this.

Putin has ordered the purchase of grain from farmers amid problems with exports through Russian ports.

As a reminder, Russia has rejected all options for a grain agreement that could allow for the resumption of agricultural exports via the Black Sea. Ukraine’s Minister of Agrarian Policy, Taras Vysotsky, told Bloomberg about this. According to him, Kyiv received this information from countries that had attempted to establish a dialogue with Moscow.

Currently, Ukraine and Russia are virtually on par in terms of grain export volumes in absolute terms.