Taganrog, Russia (PortSEurope) March 5, 2023 – Western sanctions have forced Russia to abandon construction projects for new grain terminals in the Azov Sea ports of Azov and Taganrog, acknowledged Minister of Agriculture of the Rostov region Konstantin Rachalovsky. The canceled projects are Azov Sea Terminal (AMT) and Sea Grain Terminal (MZT).
“Anti-Russian sanctions have a negative impact, complicate calculations, creating logistical problems, increasing the transport issues for the delivery of equipment and components,” Rachalovsky said. “This led to adjustments in the timing of implementation and budgets of investment projects”.
“In the context of the restriction of navigation in the Sea of Azov, the reduction of export shipments, the introduction of restrictions in the form of duties, tariff quotas, the investment projects of AMT and MZT for the construction of terminal complexes are currently on pause,” he added.
Russia imports most of the high-tech equipment for its ports. Sanctions against the country for its invasion of Ukraine blocked most of the equipment and technology exports from Europe and the United States.
A terminal with a capacity of 1.5 million tonnes per year of grain and other cargo was approved to be built in Azov. It would have been located on the Don River and well connected for agricultural exports. Investments in the project were estimated at 3.26 billion rubles. The deadline for completion of the AMT project was end of 2025.
In the seaport of Taganrog (80 km by road from Rostov-on-Don), the construction of a universal port transshipment complex was underway in the area of the northern Pier. The terminal’s capacity was planned at 270-300,000 tonnes of grain and general cargo per year. The cost of the project was estimated at 1.13 billion rubles. The deadline for completion of the MZT project was the end of 2024.
Most of Russia’s grain is exported through the ports of the Black and Azov Seas. There is speculation that the grain terminals in Azov and Taganrog might be used to export Ukrainian grain stolen from silos in the occupied regions of the country.
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