6 Aug 2010 13:43

RZD to stop shipping grain to exporters Aug 7

MOSCOW. Aug 6 (Interfax) - Russian Railways (RZD) will stop shipping grain to consignors for export purposes on August 7, the Russian rail monopoly told Interfax.

Russian Prime Minister Vladimir Putin Thursday signed a government order to ban grain exports from August 15 until the end of this year due to the drought which has affected farmers in many regions of Russia.

The company said 1,600 grain freight cars had built up on the approaches to the Novorossiisk port in southern Russia. "We have eight trains standing there," it said.

RZD will be restricting shipments to the port between August 6 and 10.

The company said in a press release that it had asked Arkady Zlochevsky, head of the Russian Grain Union, to help get grain wagons idling near the port unloaded.

RZD said it was suffering "unjustified financial losses," loading 109 of a scheduled 190 cars with grain in July. It has been loading fewer cars than scheduled this month and its warehouse capacity is almost full.