Kremlin nets $1.9bn in wheat export levies

THE Kremlin has pocketed a $1.9bn (£1.5bn) windfall from wheat export taxes after blocking Ukraine’s ability to deliver grains by sea.

Disruption sparked by Vladimir Putin’s invasion – combined with hot weather and droughts – has sent global wheat prices up by more than 50pc.

The crisis is threatening hunger and famine across the globe, but Russia has cashed in on the higher prices and raked in more revenues per tonne from buyers including Egypt and Turkey.

So far this season, export taxes have hit $1.9bn, according to data from Sovecon, a Russian agricultural consultancy, while a bumper wheat crop is expected in the next season beginning in July. In addition to blockading Ukrainian ports, Russia has been bombing warehouses in the country and plundering its grain reserves.

Global leaders gathered in Davos have accused Mr Putin of using food as a weapon as western countries battle to free 20m tonnes of wheat in Ukraine.

David Beasley, head of the UN’S World Food Programme, said: “Failure to open up the ports is a declaration of war on global food security.” He added that the lack of access to food may force millions of people to migrate.

By blocking ports, Russia has forced

‘Failure to open up the ports is a declaration of war on global food security. It may force millions to migrate’

Ukraine to try and transport grain by land. But exports have dropped to only around a quarter of the usual volumes.

Ursula von der Leyen, the European Commission President, decried Russia’s actions as “blackmail”. Ben Wallace, the Defence Secretary, urged Russia to let Ukraine export its grain to countries where shortages could trigger hunger.