(Bloomberg) -- A new trader has emerged as Russia’s biggest exporter of grain, after a long-time market leader became entangled in a rift with the country’s agriculture regulator.
Grain Gates LLC pushed past TD Rif in the 2023-24 season that ended in June, exporting 14 million tons, according to data from analysts ProZerno. TD Rif — which changed its name to Rodnie Polya in April — had held the top spot for nine seasons and the two firms were neck-and-neck at the season’s halfway mark.
TD Rif saw its export share tumble after its ships were blocked or delayed by the country’s agricultural watchdog. Owner Petr Khodykin told a local newspaper this month that the company’s losses could total as much as $50 million.
It’s the latest upheaval among traders in the Russian grain market, upended since Vladimir Putin’s 2022 invasion of Ukraine. Russia is the world’s biggest wheat exporter, and local companies — some with links to the state — have moved to take control since major Western traders stopped originating grain for export there last year.
That also means that the Kremlin has greater control over world grain and wheat supplies. Previously it had been using that to try and put a floor under Russian wheat prices for export, and to bolster its diplomatic efforts as it gives free grain cargoes to some allies in Africa.
Rodnie Polya, as TD Rif is now known, did not immediately respond to emails seeking comment.
Grain Gates, which was registered as a company just two years ago, is an export partner of Demetra-Holding. Demetra was a major Russian wheat exporter until 2021-22 and was backed by state-owned lender VTB Bank PJSC until last year.
This is the first season since their exit where the Western traders don’t appear in the rankings. They no longer originate exports from Russia, though they can buy cargoes from other firms at ports.
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