Ban on Russian wheat exports lifted partially

Russian Government has partially lifted the ban on wheat exports imposed earlier this August following drought and wildfires caused by unprecedented hot weather conditions.

According to Russian news agency Ria Novosti, the decision was made on August 30. The document stipulates that the lift refers to some exclusive cases of wheat exports such as humanitarian aid, some of Russia’s international contracts, as well as other occasions which the sources does not specify.

The ban was imposed earlier this August upon Russian Prime Minister Vladimir Putin’s ruling following widespread wildfires that affected some agricultural regions in Russia, sending shockwaves to the world market.

The ban came into force on August 15 and will last till 31 December this year. But Russian officials did not rule out then that the ban could be extended.

Moscow called on neighboring Kazakhstan and Ukraine to follow suit but these two countries, which are included in a recently launched Customs Union, initiated by Russia, were dismissive of the call, and though at some point Minsk discussed such a possibility.

Drought in Russia and Vladimir Putin’s ban on wheat export negatively affected the world market with the wheat prices skyrocketing in the Chicago Board of Trade setting an all-time record for 2010 – $7.8 per bushel.

Currently that price is $6.6 against the $4.8 in June-July.