Russian strikes have halted ships from entering Ukraine’s Black Sea ports: what will happen to grain exports?
23 July 05:56
Due to the intensification of Russian attacks on port infrastructure and civilian vessels, no merchant ships are currently calling at Ukraine’s Black Sea ports to load agricultural products. This decision was made by the shipowners themselves following the latest shelling, including a missile strike on a ship carrying grain.
This was announced during a briefing by Taras Vysotsky, Ukraine’s Minister of Agrarian Policy and Food, according to "Komersant Ukrainian"
Why ships have stopped calling at Ukrainian ports
According to Taras Vysotsky, Ukraine has not imposed any restrictions on the operation of seaports.
At the same time, following the intensification of Russian attacks, shipowners voluntarily suspended their vessels’ calls at Ukrainian Black Sea ports.
The attack on July 19 was particularly critical, when Russian forces launched a missile strike on a civilian vessel carrying corn. Ten people were killed as a result of the attack.
Is Ukraine Facing an Export Crisis?
Despite the temporary suspension of ship calls, the Ministry of Agrarian Policy does not foresee any critical consequences for exports.
According to the minister, the situation is significantly different from the first months of the full-scale war.
Ukraine already has:
- alternative logistics routes;
- the ability to export through Danube ports;
- a well-developed rail infrastructure for transporting grain to EU countries;
- sufficient storage capacity for the new harvest.
The government is ready to use alternative routes
Taras Vysotsky reported that alternative logistics routes are currently far from being utilized to their full capacity.
Specifically:
- rail exports to European Union countries currently have one of the lowest transportation costs in the last few years;
- Danube ports can be utilized more actively if necessary;
- Ukraine can once again use special plastic silos to store 10–12 million metric tons of grain.
At the same time, operations at the Danube ports are partially hampered by low water levels, which this year are attributed to the drought in Europe.
Should farmers rush to sell their grain?
The minister urged Ukrainian producers not to make hasty decisions regarding the sale of their harvest.
According to him, the current situation could change practically every day, and there is sufficient grain storage capacity available.
Taras Vysotsky emphasized that a short-term pause in port operations will not have a significant impact on total export volumes during the marketing year.