Natalia Shagaida, Head of Agrarian Department at the Gaidar Institute, commented to “” on the growing panic among traders due to emerged difficulties associated with grain export.

Difficulties have broken out in Russia associated with the export of wheat against the announced quotas and duties on grain exports, which are to enter into force on February 15, 2021. Domestic exporters complain about the almost ten days goods inspection delay at customs, difficulties related to registration of grain for shipment by rail towards the ports of the Baltic States, as well as the deterioration of the situation concerning acceptance of grain for transportation towards the southern ports.

Natalia Shagaida noted: “The practice of administrative restrictions is applied as standard when prices rise at the external market or become extremely attractive for exports due to devaluation of the ruble”.

“This is the simplest tool for the state to quickly respond in order to defend domestic market. The Law “On Development of Agriculture” suggests other tools as well, specifically, commodity interventions from intervention fund. However, regretfully, it was not possible to bring this tool to a degree when it could support the incomes of agricultural producers during the falling prices period and reduce the consumers’

expenditures when grain prices rise”, commented the expert.