Ukraine setting up temporary shipping route after Russia exit

Ukraine is setting up a temporary shipping route to maintain grain shipments after Russia quit a deal allowing Ukrainian exports via a UN-backed safe sea corridor, Kyiv said in an official letter on Wednesday, July 19.

Russia attacked Ukraine’s Black Sea Odesa port for the second consecutive night on Tuesday after quitting the deal on Monday, which included Moscow revoking guarantees for safe navigation.

In a letter dated July 18 submitted to UN shipping agency, the International Shipping Organization, on Wednesday, Ukraine said it had “decided to establish on a temporary basis a recommended maritime route”.

“Its goal is to facilitate the unblocking of international shipping in the north-western part of the Black Sea,” Vasyl Shkurakov, Ukraine’s acting minister for communities, territories and infrastructure development, said in the letter.

Ukraine added in the letter that the additional traffic route it was establishing would lead to the territorial waters and exclusive maritime economic zone of Romania, which is one of the neighbouring Black Sea countries.

Ukrainian President Volodymyr Zelenskiy has said the Black Sea grain deal could continue without Russian participation, and Ukraine is working on options to keep its commitments on food supplies.

Since Russia’s move to exit the deal, insurers have been reviewing their appetite to cover ships into Ukraine.

A cargo insurance facility that provided cover for shipments via the previous corridor deal has been suspended, the policy’s broker Marsh told Reuters on July 18.

Additional war risk insurance premiums, which are charged when entering the Black Sea area, need to be renewed every seven days.

They already cost thousands of dollars and are expected to go up, while shipowners could prove reluctant to allow their vessels to enter a war zone without Russia’s agreement. There is also the risk of floating mines.

Source: Reuters

To read the original news report, please go to: https://www.reuters.com/article/ukraine-crisis-grains-ports/ukraine-setting-up-temporary-shipping-route-after-russia-exit-official-letter-idUSL1N395129

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