Ukraine may lose US$6bn in grain exports with blocked ports

Ukraine may lose up to US$6 billion in grain exports revenue as Russian forces block its ports from shipping millions of tonnes of wheat and corn that were to be exported until June, said sources from this industry.

A major producer of grains and oilseeds, Ukraine exports 98% of its cereals through ports and only a small fraction by rail due to its greater costs.

With Russian warships off Ukraine’s southern coast preventing vessels from leaving ports, including the main Black Sea hub of Odesa, grain exports have been halted since the war began on February 24.

Ukrainian maritime officials said that the clash left nearly 100 foreign-flagged vessels stranded in the country’s ports.

“We have a potential loss of $6 billion,” Ukraine Grain Association president Mykola Gorbachev told Reuters.

He stated that the country still has approximately 20 million tons of wheat and corn to export from the 2021/22 season, which ends in June, at an average price of around US$300 per ton.

Gorbachev added that Ukraine could not transport that volume by train because the railroad has a monthly handling capacity of around 600,000 tons, one-tenth of what ports handled before the war.

Ukraine exported around $27 billion worth of agricultural products in 2021, accounting for about half of its total export earnings.

“Now we are losing ground in this market,” Gorbachev said.

The consultancy APK-Inform estimated on Monday that Ukraine should export just 200,000 tonnes of wheat between March and June due to the blockade at Black Sea ports.

According to International Grain Council (IGC) data, the country was the world’s fourth-largest grain exporter in the 2020/21 season, with Russia ranking third. Together, the two countries accounted for 22% of global exports.

Source: Money Times

To read the full original article, please go to: https://www.moneytimes.com.br/ucrania-pode-perder-us-6-bi-em-exportacoes-de-graos-com-portos-bloqueados/

Sharing is caring!