Russia’s strikes on ports hit exports: farmers warn of breaking contracts and falling trade
24 December 17:41
Intensified Russian attacks on Ukraine’s port infrastructure in December have already led to disruptions in export contracts and could lead to a sharp decline in foreign trade. This was reported by Reuters with reference to a statement by the All-Ukrainian Agrarian Council (AAC), "Komersant Ukrainian" reports.
Fulfillment of export contracts is significantly behind schedule
According to the UAC, as of December 22, the fulfillment of export contracts is significantly behind schedule:
- wheat – 375 thousand tons were exported out of the planned 1 million tons per month;
- corn – 1.5 million tons out of 2 million tons shipped;
- sunflower oil – 275 thsd tonnes out of 410 thsd tonnes contracted, while exports are unlikely to exceed 350 thsd tonnes by the end of the month.
For comparison, in December last year, Ukraine exported 800 thousand tons of wheat, 2.6 million tons of corn and 378 thousand tons of sunflower oil.
Why is this happening?
The UAC attributes the problems to Russia’s almost daily attacks on the ports of Odesa region with drones and missiles. Despite attempts to redirect cargo to the railroad, export opportunities are sharply declining.
According to the trade union, at least one of the three key export ports is either completely out of service or operating at only 20% of capacity. In addition, logistics routes connecting Ukrainian regions with the Danube ports, which have partially compensated for the loss of sea harbors since the beginning of the full-scale war, have been damaged.
What do farmers say?
The UAC warns that without stable operation of sea and river ports, food exports will be significantly reduced. This creates risks not only for the agricultural sector, but also for the country’s foreign exchange earnings in general.
As a reminder, on December 23, a civilian ship flying the Lebanese flag carrying Ukrainian soybeans was damaged in the port of Odesa as a result of a nighttime shelling by Russian Federation.
Ukraine, together with Moldova, is discussing alternative transportation routes after the attack on the bridge in the Mayaki area, which further complicated logistics.
