Ukraine’s grain exports blocked by both Russia and Europe — Politico

Ukraine is facing a double blockade of its grain exports: Russian strikes on shipping in the Black Sea are forcing Kyiv to seek alternative routes through EU countries, but Poland, Hungary, and Slovakia are resisting the influx of Ukrainian goods into their markets.

This is reported by Politico.

According to Ukrainian Agriculture Minister Taras Vysotsky, in the first nine days of August the country exported only 463,000 tonnes of grain — about a third of the usual volume. If the situation does not change, Ukraine may run out of storage capacity for the new harvest by November.

Since the end of July, no grain vessel has entered the ports of the Odesa region. The trigger was a Russian missile strike on a cargo ship that killed 10 people.

“Shipowners and crews are simply afraid. They are not prepared to send ships at all,” Vysotsky told Politico.

Redirecting exports through the European Union in full is not feasible: transportation by rail and road costs approximately EUR 43–60 per tonne more than sea freight. The route through Romania is further constrained by low water levels on the Danube.

Poland intends to maintain its ban on imports of Ukrainian grain, agreeing only to transit to third countries. Polish farmers do not trust assurances that the additional volumes will not end up staying within the country.

Ukraine has requested EUR 220 million in aid from the European Commission so that farmers can store grain until sea shipping is restored. Vysotsky warns that if the situation persists, global food prices could rise by at least 25–30%.

The outlet previously reported that agricultural exports from Ukraine this year and next could fall by more than half due to Russian strikes on the ports of the Odesa region. Because of the naval blockade, Ukrainian farmers are also unable to sell their harvest.