Grain exports from Russia have been suspended due to the detection of quarantine objects - the trading company "Rif" faced issues with shipments to different countries.
TD "Rif" has suspended grain exports due to the detection of quarantine objects. The company risks losing customers and over $100 million due to contract violations. This is the first case in 20 years. Quarantine plant seeds must be removed to avoid damage to Russia's reputation.
24 March 2024
One of the leading grain export partners in Russia, TD "Rif", has suspended shipments for export due to the discovery of quarantine objects in all export batches. In batches intended for Egypt, powdery mildew, field bindweed, and field madder were found. And in batches for Morocco - ergot of rye, in batches for Bangladesh - spreading dogbane and bindweed.
The company risks breaching contracts and losing its customers, which will result in additional expenses for fleet downtime. The total volume of batches is 400,000 tons, and the contract sum exceeds $100 million.
TD "Rif" usually pays special attention to controlling the quality of purchased grain, and this situation is the first in 20 years of operation. Concern arises from the fact that similar batches have previously been formed and passed inspection, meeting all requirements.
Over 70% of Russian grain exports go through deep-water ports of the Black Sea. Therefore, the company must clean the batches from seeds of quarantine plants to avoid damage to Russia's grain market image and possible imposition of restrictions or complete ban on Russian grain imports.
Compliance checks with the requirements of the destination country take place after loading onto the ship before sending the batch. Each importing country has its requirements, and the list of prohibited plants in them may be broader than in Russia.
In this case, if the grain products meet phytosanitary requirements, the exporter receives a phytosanitary certificate, if not - then no. In such a situation, the company can clean the export batch or choose a country with different requirements.