Business
Russian Grain Trader Faces Export Disruptions Over Safety Concerns
A major Russian grain trader, TD Rif, is currently experiencing disruptions in its wheat exports following safety and quality concerns raised by Russia‘s agricultural oversight body.
The owner of TD Rif, Petr Khodykin, expressed that the company’s shipments faced blockages, resulting in significant financial losses due to the cargoes not meeting safety and quality standards set by inspectors.
Russia, renowned as the world’s largest wheat exporter, has seen a tightening of controls on exports post the invasion of Ukraine by President Vladimir Putin, culminating in major global traders halting grain origination from the country.
Recent reports suggest that TD Rif’s ships have been detained since March 18 after inspectors found discrepancies in the safety and quality of the wheat cargoes, a stark contrast to previous inspections where the grain cleared all required tests with ease.
Allegations have surfaced that TD Rif is under immense pressure to sell its assets at an undercut price, as the company’s shipments continue to fall short of import requirements in various countries, prompting rigorous scrutiny from authorities.
In response to the allegations, Rosselkhoznadzor, Russia’s agricultural regulator, has pointed out that over 81% of TD Rif’s grain shipments in 2024 have failed to meet the necessary safety and quality standards and were lacking essential shipping documentation.
Western grain traders withdrew from Russia’s market following calls for reduced participation from local officials and industry influencers, alongside efforts to implement an unofficial minimum pricing mechanism for Russian grain exports, further complicating the situation for players like TD Rif.
TD Rif, established in Rostov-on-Don in 2010, has notably risen to become one of the leading wheat exporters since the 2014-15 season, competing closely with Grain Gates for dominance in the industry by consistently posting high grain export volumes.
