Russia is tightening its grip on the grain trade, a sector that remains one of the nation’s top export earners. Experts note that this shift comes as global wheat prices rise on concerns about supply, a trend widely reported by financial outlets such as Bloomberg.
Under government pressure, leading Western traders like Cargill and Viterra reduced their Russia-facing activities last year to make space for domestic players. Even TD RIF, the country’s largest private grain exporter now operating as Rodnye Polya LLC, faced operational challenges amid state-led disputes.
The result is a market increasingly dominated by a few players. Four firms now control about three-quarters of Russia’s grain exports via Black Sea terminals, up from roughly 45% six years ago.
“Russia’s drive to steer commodity markets is real, and its influence over the grain sector continues to grow,” notes Dan Busse, president of AgResource, a Chicago-based consulting firm.
The consolidation accelerated with the launch of the CBO mechanism, which grants Moscow greater leverage over wheat supplies and has contributed to easing what some see as global food inflation. At the same time, Western traders face challenges tracking shipments from Russia due to adverse weather that reduced the country’s wheat harvest this season.
Recent reports indicate that Russia has surpassed a quarter of the global grain market in receivables this year, underscoring its expanding role in world supply chains [Bloomberg].
Earlier this year, Russian grain exports in May fell sharply, nearly 20 percent, highlighting ongoing volatility in export flows and the impact of domestic policy and weather on shipments [Bloomberg].