Moscow - The Russian government expanding the list of export commodities that must be paid for in Russian currency, has added grain, sunflower oil and extracted meal. A resolution giving effect to the decision was implemented on Friday and published on the official portal of legal information.

The resolution also gave a one-year extension of duties to be paid in the national currency in respect of exported sunflower oil and sunflower meal until August 31, 2023.

As part of the new payment mechanism, the base price for calculating the export duty on wheat will be 15,000 rubles (over $267) per ton.

Sanctions that Western governments imposed after Russia invaded Ukraine froze Moscow's foreign currency holdings, largely blocking transactions in dollars and euros, which dominate international trade transactions, forcing the country to ask for payment in Roubles.

Russia is the world’s largest wheat exporter accounting for about 19% of the market and a major supplier of sunflower seeds. Russian Minister for Agriculture Dmitry Patrushev said this month that the country would export agricultural products to “friendly countries” only.

According to the minister, Russia’s grain harvest could reach 130 million tons this year, which would be enough to cover both domestic needs and ensure export potential.

If Russia restricts grain exports, it won't hit Western countries directly as they don't buy much of the Russian grain. The blow will be on poor countries. And poorer the country, the stronger the consequences of rising prices will be for it.
-RT