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Russian Agribusiness Giant’s Profit Collapses 99% as Grain Piles Up at Home
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![Photo of Ivan Khomenko]( "Photo of Ivan Khomenko")
Russia is struggling to export grain from its new harvest as disruptions to port logistics create a growing domestic surplus, pushing agricultural prices lower and increasing pressure on producers.
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According to Ukraine’s Foreign Intelligence Service (SZRU) on September 6, Russian grain exports fell 2.5-fold between August 1 and 20 to 1.4 million metric tons, while wheat shipments declined 2.6-fold over the same period.
The agency said wheat exports could fall by a further 52.1% to 62.5% in September, reaching between 1.8 million and 2.3 million tons. If confirmed, that would mark Russia’s lowest September wheat export volume since 2010.
The slowdown has contributed to an accumulation of agricultural products inside Russia. Prices for wheat, barley, sunflower seeds, and soybeans declined by between 3.3% and 8.5% in a single week and are now more than 40% lower than a year earlier, according to the SZRU.
The pressure is particularly visible in the Rostov region, which accounts for nearly 10% of Russia’s grain harvest. Regional authorities introduced a state of emergency on August 28 amid difficulties exporting agricultural products.
Russia’s government is considering measures including state purchases, subsidized loans, subsidies, and lending secured against unsold crops, the Ukrainian intelligence agency reported. Authorities are also considering eliminating the grain export duty and compensating producers for the higher cost of transporting shipments to alternative ports.
However, rerouting exports presents additional logistical and financial constraints. Up to 70% of Russia’s grain exports previously moved through southern ports, while alternative routes lack comparable capacity, according to the SZRU.
Transporting grain to Baltic Sea ports adds an estimated $30 to $50 per ton to shipping costs, further reducing the profitability of Russian exports.
The effects are also being reflected in the financial results of major agricultural companies. Rusagro, one of Russia’s largest agribusiness groups, saw its net profit fall by 99% in the first half of 2026—from 4.8 billion rubles (about $59 million) to 55.88 million rubles (about $690,000), according to figures cited by the SZRU.
Earlier, Russian grain exports through the Azov-Black Sea basin nearly ground to a halt after drone strikes forced major terminals in Novorossiysk and Taman to suspend operations, while navigation through the Kerch Strait was also restricted.
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