Russian grain sales to Iran stalled after US attacks, sources say

Russia’s grain exports to Iran have stalled amid the war in the country, sources tell Reuters, though Iran — Russia’s No. 3 grain buyer — has already bought and moved up to 95 percent of its expected Russian wheat purchases this season.

Two sources at Russian exporting companies, who decline to be identified, say shipments of grain bound for Iran from the Black Sea and the Caspian Sea have halted, although exporters are still trying to fulfill existing contracts.

“There is a need for supplies, but for now they have been suspended,” one of the sources says.

“I think they will be resumed at the first opportunity for both feed and food product categories. Iran has had a poor harvest this year and difficult, dry weather,” the source adds.

Middle Eastern buyers such as Israel, Egypt, Turkey, Saudi Arabia and Iran are key markets for Russian grain, though Russia is looking to diversify shipments to Asia, Africa and Latin America.

The sources say exports to other buyers continued without interruption, but the recent attacks had pushed up freight costs, insurance premiums and created payment difficulties involving banks in the Gulf.

Analysts at grain rail carrier Rusagrotrans say Iran imported almost 6 million tons of grain from Russia from July to February, compared with 3 million tons in the same period a year earlier.