Russia Allocates 10 Billion Rubles to Support Rail Transport of Agricultural Exports

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The Russian government plans to allocate around 10 billion rubles (approximately $110 million) to support the transportation of agricultural products intended for export, Vedomosti reports, citing its sources. The funds are intended to compensate for part of the costs associated with transporting goods by rail.

According to sources familiar with the grain market situation, this measure is linked to the need to restructure logistics due to restrictions in shipping in the Azov Sea.

It is expected that the additional funding will allow for the redirection of export flows through alternative routes. Specifically, shipments from Rostov region may be reoriented towards ports on the Black and Baltic Seas, while grain from Siberian regions could be transported via the Far Eastern direction.

Market participants believe that supporting rail freight will help prevent the build-up of grain surpluses within the country amid high harvesting rates, maintain export volumes, and ensure stable income for producers.