Russia’s grain exports to Iran interrupted by war, sources say

The source noted that Iran has had a poor harvest this year and difficult, dry weather. Middle Eastern buyers such as Egypt, Turkey, Saudi Arabia, Iran and Israel are key markets for Russian grain.

Russia is also looking to diversify shipments to Asia, Africa and Latin America. The sources said exports to other buyers continued without interruption.

The recent attacks had pushed up freight costs and insurance premiums. These events also created payment difficulties involving banks in the gulf.

Analysts at grain rail carrier Rusagrotrans said Iran imported almost six million tonnes of grain from Russia from July to February. This compared with three million tonnes in the same period a year earlier.

Analysts estimate Russian exporters have shipped 1.9 million tonnes of wheat to Iran. This is out of a planned two to 2.2 million tonnes.

Most grain trade with Iran moves through the Black Sea and the Caspian Sea. Some shipments go by rail through Azerbaijan, Kazakhstan and Turkmenistan.