Russia receives additional income from blocking Ukrainian ports
On the 40th day of Russia's invasion of Ukraine, the civilized world clearly understood the goal and objectives of the aggressor, namely the destruction of Ukraine as an independent state and Ukrainians as a nation.
The siege and bombing of Kharkiv, Chernihiv, Sumy, Mariupol and other Ukrainian cities, blocking humanitarian aid and green corridors for civilians, killed civilians not only from shells and bombs but also from food and water shortages.
The Russian military blockade of Ukraine's seaports is aimed at depleting the domestic economy. This has already led to a sharp rise in world grain prices, which Russia is actively using to increase its exports, despite sanctions. High world grain prices increase Russia's budget revenues and offset the impact of sanctions.
In March, Russia exported 1.914 million tons of wheat, which is 53% higher than in March 2021 and slightly lower than in February 2022, when 2.232 million tons of wheat were exported.
From July 1, 2021 to April 1, 2022, Russia exported 30.6 million tons of wheat from the projected 35 million tons (37 million tons last year), and despite sanctions, by the end of the season will be able to ship 1.5 million tons per month.
The main buyers of Russian wheat were Iran, Turkey and Egypt, which did not support the sanctions and agreed to buy Russian grain for rubles. Deliveries to Iran have grown significantly.
Wheat prices on US stock exchanges fell on sowing forecasts and improved weather conditions.
May futures fell yesterday:
- 2.2% or $ 7.9 / t to $ 361.7 / t for soft winter SRW wheat in Chicago,
- 1.7% or $ 6.15 / t to $ 372.2 / t for winter winter HRW wheat in Kansas City,
- 1.35% or $ 5.24 / t to $ 391.4 / t for durum HRS wheat in Minneapolis,
- 0.3% or $ 1.5 / t to $ 389 / t for Black Sea wheat in Chicago.
