March 7, 2022

Louis Dreyfus suspends Russian operations

One of the biggest commodity merchants, Louis Dreyfus Company (LDC), has suspended its operations in Russia, Reuters reported.

LDC, like other major global traders, have already suspended operations in Ukraine after commercial shipping has been halted because of the conflict.

Worldwide grain markets have been affected by Russia's invasion into Ukraine, as both countries account for close to 30% of global wheat exports and 20% of corn exports.

Another global crop merchant, Bunge, said that Western sanctions imposed on Russia could have an adverse effect on its operations in Russia.

LDC runs a grain export terminal in Russia's Azov Sea which a yearly annual capacity of about 1 million tonnes. According to LDC's website, the terminal exports 1.5-3 million tonnes per year in total from Russia.

The Azov Sea is closed to shipping because of the conflict. While ports in Russia based in the Black Sea have remained open, traders said international companies and ship owners are hesistant to use the ports due to the war and related sanctions.

-      Reuters