Ukraine looks for higher vessel tonnage to impulse exports under grain agreement

On the 10th, Ukraine’s Ministry of Agriculture proposed raising the minimum tonnage of ships carrying grain and vegetable oil from the country through a grain corridor, with the aim of increasing exports, despite opposition from Russia.

After a nearly six-month blockade caused by the Russian invasion, three Ukrainian ports on the Black Sea were unlocked at the end of July through an agreement between Moscow and Kiev brokered by the United Nations and Turkey.

But Ukraine has repeatedly accused Russia of delaying inspections of ships carrying Ukrainian agricultural products, leading to reduced shipments and losses for traders.

Russia denies the allegations.

Ukraine’s Ministry of Agriculture said in a statement that, due to the slowdown in inspections in the Bosphorus, a queue of 108 vessels had formed by February 9.

He said that to “reduce downtime and increase exports”, the minimum tonnage of ships could be increased from 20,000 tonnes for grains to 25,000 tonnes and from 6,000 tonnes to 10,000 tonnes for vegetable oils.

“Given the average number of inspections –2.5 vessels per day– we expect the new rules to have an effect on increasing shipments in a month and a half”, said the ministry.

The government added that it would propose introducing the new rules for ships that were not already waiting in line.

Ukraine has exported nearly 17 million tonnes of grains and oilseeds since the opening of the corridor to the end of January, the Ukrainian union of grain traders UGA said.

He noted that in January 2023, exports of agricultural products “did significantly cause deliberate delays in ship inspections by Russia”.

Ukraine’s grain exports in the 2022/23 season, which runs through June, fell 29.2% to 28.2 million tonnes as of Feb 8 due to a smaller harvest and logistical difficulties caused by the war, data showed. of the ministry.

A major global producer and exporter of grains, Ukraine’s production is expected to fall to around 51 million tonnes clean weight in 2022 from a record 86 million tonnes in 2021. Officials have blamed hostilities in the eastern, northern and southern regions from the country.

Source: Money Times

To read the original report, visit: https://www.moneytimes.com.br/ucrania-busca-maior-tonelagem-de-navios-para-impulsionar-exportacoes-sob-acordo-de-graos/

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