Russia declares emergency in key agricultural region amid export crisis

Russia has declared a regional state of emergency in the Rostov region, a vital agricultural hub responsible for nearly 10% of the country's total grain harvest. The declaration comes amid a deepening crisis in grain exports, significantly impacted by ongoing drone attacks.

Since mid-July, ports on the Sea of Azov have ceased operations due to drone attacks, which previously handled up to 1.5 million tons of grain exports monthly. In August, major grain terminals on the Black Sea also closed following drone assaults. Arkady Zlochevsky, chairman of the Russian Grain Union, described the situation as "very bad" for farmers, with cargo movements in the Azov region completely halted. Analytical center "SovEcon" estimates that over 80% of Russia's grain export capacity is paralyzed due to these port issues.

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the situation for farmers looks very bad

The impact on global markets is substantial. Russian wheat exports in August dropped to 1.9 million tons, the lowest level in 16 years. This represents a 2.3-fold decrease compared to August 2025 and a 2.6-fold reduction compared to the five-year average. The Russian Ministry of Agriculture is preparing for state grain purchases and exploring alternative export routes, potentially through Arctic ports, though industry representatives doubt these can fully replace Black Sea routes.

The escalating conflict between Russia and Ukraine poses a significant threat to global food security. Ukraine has targeted grain terminals in Novorossiysk, a key export hub for over 40% of Russian grain. Authorities have suspended exports pending repairs. In retaliation, Russia has intensified missile attacks on Ukrainian ports in the Black Sea, sinking several vessels. This mutual disruption risks a severe reduction, or even a complete halt, in agricultural exports from both nations, raising serious concerns given their importance in global food markets.

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all cargo in the Azov region has been completely stopped.