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Russia Allocates 9.5 Billion Roubles for Rail Grain Cargo

Russia will allocate more than 9.5 billion roubles to subsidise agricultural rail freight following severe disruptions to Black Sea export shipping routes.

Russia Allocates 9.5 Billion Roubles for Rail Grain Cargo

The Russian government will allocate more than 9.5 billion roubles to subsidise the transport of agricultural products by rail across the country, Prime Minister Mikhail Mishustin announced during a cabinet meeting.

The funds will go directly to state railway monopoly Russian Railways to compensate for carrying agricultural goods at discounted tariffs, state news agency RIA Novosti reported.



Mishustin said the measure is intended to maintain stability within the domestic agricultural market while ensuring Russia meets its supply commitments to international buyers of agricultural products.

He explained that logistics in the Azov-Black Sea basin are currently complicated, adding that work is underway to alter cargo delivery routes.

The Azov-Black Sea basin in southern Russia is a major shipping region that connects regional agricultural producers to Mediterranean and global trade networks through ports such as Novorossiysk.

Photo: Alexander Manzyuk / Kommersant

Disrupted shipping routes and falling exports

The decision to subsidise rail cargo comes after severe disruptions to maritime transport in the region. The Black Sea corridor was previously the main export route for both Russian and Ukrainian grain, but movement along the path has effectively stopped following strikes on merchant vessels.

The shipping halts have led to a sharp drop in trade. The Russian Grain Union, a trade group representing domestic growers and exporters, indicated that total Russian grain shipments abroad fell by 2.5 times between 1 August and 20 August compared with the same period in 2025.

Government export measures

To address the transport bottlenecks, the Russian Ministry of Agriculture previously set up an operational headquarters to redirect shipments of Russian agricultural products to alternative foreign markets.

The ministry also plans to abolish export duties on grain to support overseas sales and ease the burden on domestic producers.

Russian Railways operates the national rail infrastructure, which serves as the primary inland alternative for bulk freight when maritime routes are compromised.

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