The French agricultural trading giant Louis Dreyfus will stop exporting Russian grain from 1 July, the company said in a statement on Monday.
In a letter, the local head of the company said, 'Louis Dreyfus Company (LDC) will cease grain exports from Russia from 1 July 2023, as grain export challenges continue to increase in the country, and is also assessing options for the transfer to new owners of its existing Russian business and grain assets.'
Louis Dreyfus' head office confirmed the move to Reuters.
In its own statement, the Russian agriculture ministry said it had received notice from Louis Dreyfus Vostok ('East') that it would cease handling Russian grain exports. It said the move would not affect the volume of Russian grain exports.
Cargill Inc said it would take a further step back from the Russian market by no longer handling the top wheat supplier's grain at its export terminal from July, although its shipping unit will continue to carry grain from the country's ports.
Global Grain Supplies
The move stoked concerns about global grain supplies disrupted by the 13-month-old war in the Black Sea breadbasket region, lifting benchmark wheat futures prices from earlier losses.
Most international grain traders have stopped new investment in Russia since last year following Moscow's invasion of Ukraine but continued exporting Russian wheat.
'As grain export-related challenges continue to mount, Cargill will stop elevating Russian grain for export in July 2023 after the completion of the 2022-2023 season,' the company said in an emailed statement.
'Elevating' refers to the lifting of grain into export vessels.
Cargill, which owns a stake in the grain terminal in the Black Sea port of Novorossiisk, did not specify if it was selling the stake.
'The cessation of its export activities on the Russian market will not affect the volume of domestic grain shipments abroad. The company's grain export assets will continue to operate regardless of who manages them,' Russia's agriculture ministry told Reuters.
Elsewhere, grain trader Viterra, part-owned by Switzerland-based mining and trading giant Glencore, will also cease its export activities in Russia.