December 22, 2006

Russian ports block Ukrainian grain export quota

Russian and Kazakh companies have increased grain exports in connection with the introduction of a quota for export of grain from Ukraine, according to the press service of the Ukrainian Grain Association.

As a result, large numbers of freight cars containing grain have accumulated at certain Russian ports. Continuing problems with Ukraine authorities regarding grain transit have also contributed to the same.

Unable to tackle the problem, Russian railways banned transportation of grain to the Novorosiisk and Tuapse stations on Dec 17, said the press release.

The Ukraine government set grain export quotas of 3,000, 600,000 500,000 and 3,000 tonnes for wheat, barley, corn and rye respectively until Jun 30, 2007.

The country exported 13.2 million tonnes of grain during the 2006-07 market year, including 6.5 million tonnes of wheat, 4 million tonnes of barley and 2.6 million tonnes of corn.

The combined revenue from the export was US$ 1.5 billion.

The Ukrainian Grain Association's members account for 80 percent of the total volume of grain exports from Ukraine.