MOSCOW: A strong rouble, high export tax, ongoing problems with freight and lack of forward sales are expected to hamper the start of the new export season for Russian wheat in July despite an expected record crop, analysts and traders said. Russia, the world’s largest wheat exporter and which supplies mainly to the Middle East and Africa, will start harvesting the new crop within days and amid Western sanctions imposed on Moscow after it sent thousands of troops to Ukraine on Feb. 24.
These sanctions have complicated the processing of payments for Russian deals in Western banks and deterred many owners of large vessels from doing business with Moscow.
“None of the problems have been solved as of yet despite statements by the Western officials,” Eduard Zernin, who heads the Russian association of grain exporters, told Reuters.
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