Coffee Supplies to Russia Decreased due to the situation in Ukraine

Coffee supplies to Russia have declined significantly due to the situation in Ukraine.

According to “Reuters”, supplies of coffee intended for the Russian market are redirected by suppliers and traders to other destinations. Some suppliers stopped selling altogether.

Although the food trade is not subject to sanctions, difficulties in processing payments from Russian importers and concerns about the safety of ships in the Black Sea have led to reduced supplies of coffee and other goods to Russia.

Russia is one of the world’s top five coffee importers.

Coffee prices in Russia have risen by more than 20 percent due to rising costs, according to broker hedgepoint. The situation in Ukraine has reduced demand by about 1.3 million 60-kilogram bags.

Alvin Lopez, commercial director of Honduran coffee exporter enloher, said he had been instructed by a partner of his company (French food trader Sucden) to redirect a batch of coffee bound from Honduras to Russia to the port of New York.