According to a report in the business daily RBK on Wednesday, Cargill, the global commodities trader, will cease exporting Russian grain beginning in the new crop year, which begins on July 1st. The decision was revealed in a letter sent by Cargill to Russia’s Agriculture Ministry, informing them of the move.

The American corporation’s Russian unit cited “earlier discussions on grain export issues and the recommendations of the Agriculture Ministry” as its rationale for the decision. However it emphasized that the current 2022/2023 exporting season’s shipments that are planned would continue to be made, “in full compliance with the existing quota.”

Presently Cargill’s share of the current export season’s total export volume of Russian grain is roughly 4% or 2.2 million tons.

According to RBK, the company has begun a review of its grain-export related assets in the country, presumably in preparation for sale.

Cargill’s Russian operations entail the processing and distribution of grain and oilseeds for both domestic consumption and export overseas. The company handles its grain export through a river terminal which facilitates export and transit from various areas within Russia and Kazakhstan through ports on the Black Sea and the Sea of Azov.

According to Reuters, Cargill’s withdrawal from the export of Russian grains will not have any effect on the total volume of Russian grain being exported abroad.

Russia’s Agriculture Ministry was quoted by the news service as saying, “The company’s grain export assets will continue to operate regardless of who manages them.”

Cargill ceased investment in Russia in March of 2022 as international sanctions pressure on the country grew in the wake of the war in Ukraine. However its local facilities continued to operate. According to RBK, the company decided to cease Russian grain exports as regulation of the market grew.