Cargill stops grain exports from Russia. The US multinational, in sixth place among Russian exporters, has informed the Russian Ministry of Agriculture that it will stop exporting wheat from the beginning of next season, which will begin on 1 July. The Russian ministry of Agriculture has announced that it will stop exporting wheat. According to rumors, the company has communicated by letter to the deputy minister of Agriculture of Russia that it does not intend to export wheat from Russia "in accordance with the issues on wheat exports and the recommendations of the Ministry of Agriculture". At the same time, the company has promised that shipments planned for the current season 2022/2023 will be made "in full compliance with the existing quota". The multinational has confirmed that, in the current agricultural season 2022/2023, will export about 2.2 million tons, or about 4% of all Russian exports of cereals. 

Although Cargill is a large exporter of Russian wheat and a large trader of Western crops, the Moscow government has stated that the company’s decision should not affect overall shipments from the country. "The cessation of export activities on the Russian market will not affect the volume of domestic grain shipments abroad -promptly declared the ministry of Agriculture Dmitry Nikolayevich Patrushev-. The company’s cereal export activities will continue to operate independently of who manages them".

In its turn Cargill has specified to have scaled down own commercial activities and to have stopped the new investments in Russia, operating only on essential alimentary and feeding structures, in answer to the war in Ukraine. The stop to grain shipments, confirms the US multinational, will take place not before having closed the activity of the 2022-2023 season. "As cereal export challenges continue to increase, Cargill will stop harvesting Russian wheat for export in July 2023, after the completion of the season 2022-2023 -emphasizes the company-. Other activities of Cargill in the food and feed sector, including starches and sweeteners, oils and fats and animal feed, are not affected by these changes".

The wheat business has become overly politicized and risky -explains Eduard Zernin, head of the Russian Union of grain exporters, who counts Cargill among its members-. I believe that after evaluating all the pros and cons, the company decided to minimize the risks and get rid of a potentially toxic activity".

Concerns about the impact on Russian exports, in the end, could sustain prices: wheat rose up to 2.5% to $7.17 per bushel in Chicago on Wednesday, the highest since early March. Cargill’s decision, owned by one of the wealthiest families in the United States, comes after former ceo and current president David MacLennan stated in December that the company would maintain its decision to continue operating in Russia.