Russia’s Expansion of Baltic Sea Ports to Boost Agricultural Exports by 50% by 2030
By Olga Popova and Gleb Stolyarov
Russia, the top wheat exporter globally, is ramping up its Baltic Sea ports to increase agricultural exports by half by 2030 and decrease reliance on traditional Black Sea routes, officials and executives revealed.
The country, which shipped at least 72 million metric tons of grain in the 2023/24 season, is eyeing new markets in Latin America and Africa to diversify from its usual grain markets in North Africa and the Middle East.
With the conflict in Ukraine making Black Sea routes risky due to ongoing strikes on facilities, Russia is expanding its Baltic Sea capacity to meet the growing demand for exports. President Putin’s hometown, St. Petersburg, is now home to the newly launched Vysotsky and Lugaport ports, with capacity expected to hit 7 million tons by early 2025.
These two new ports are set to handle up to 15 million tons of agricultural exports annually, accounting for a quarter of Russia’s projected 60 million tons of grain exports for the 2024/25 season. Additionally, private firm Primorsky UPK is planning a grain terminal at Primorsky port with a capacity of up to 5 million tons.
Analysis:
Russia’s move to expand its Baltic Sea ports signifies a strategic shift in its agricultural export strategy. By diversifying its export routes and tapping into new markets in Latin America and Africa, Russia aims to boost its agricultural exports significantly by 2030. This expansion could potentially impact global grain supplies and provide economic benefits for the country. The increased capacity at Baltic Sea ports offers logistical advantages and cost savings for grain exports, ultimately driving growth in Russia’s agricultural sector.