Russia suspends shipping through Don-Azov Canal, which leads to Sea of Azov

Russia has suspended shipping through the Don-Azov Canal and stopped accepting applications for vessels to pass through the Kerch Strait. The restrictions took effect on July 10 at 6:10 p.m. local time. Russian authorities have not indicated when shipping will resume.

Reuters reported this, citing its own sources.

According to the agency, the russian Border Guard Service sent a notice to shipping companies stating that it would no longer accept applications for passage through the Kerch Strait. At the same time, russia suspended traffic on the Don-Azov Canal, which connects the Don River to the Sea of Azov.

Why this matters?

Up to a quarter of russia’s wheat exports pass through the Sea of Azov, according to market analysts cited by Reuters. Some of russia’s largest grain-producing regions—the Rostov Oblast and the Krasnodar Krai—are located on the coast of the Sea of Azov.

Even before reports of possible shipping restrictions emerged, the market had already reacted to the risks. Wheat futures on the European exchange Euronext rose by nearly 4% and reached their highest level in the past six weeks.

Reuters does not specify the reasons why russia imposed the restrictions, nor does it provide an estimated timeline for their lifting.

As a reminder, Ukrainian drones attacked russian ships in the Taganrog Buy today, resulting in the death of a sailor aboard one of the support vessels. A tanker carrying methanol was also hit.