Russian attacks on civilian vessels and port infrastructure have effectively halted traffic to the ports of Greater Odesa. Ukraine is expanding exports by rail, road and via the Danube. However, these routes will be able to provide only about half the capacity of the Black Sea ports. This poses a threat to exports of Ukraine’s harvest and the stability of global food markets.
Minister of Agrarian Policy and Food of Ukraine Taras Vysotskyi stated this in an interview with Reuters.
According to him, the blockage of maritime exports coincided with the active harvesting period, when agricultural producers need to store their products, finance the autumn sowing campaign and fulfil export contracts.
One of the government’s first decisions to support producers was to adjust the mechanism for determining the minimum allowable export prices for grains and oilseeds. The government is also developing financial and logistics instruments intended to help farmers avoid being forced to sell their harvest at an undervalued price.
The main alternative routes remain rail, road transport and the Danube ports. It will take at least until the end of August for these routes to reach a stable level of operation. At the same time, their total capacity will amount to only about 50–55% of the volumes handled by the ports of Greater Odesa, through which Ukraine was able to export around 6 million tonnes of products per month.
The situation is complicated by drought and historically low water levels in the Danube. As a result, the Danube route will not be able to significantly increase transport volumes until at least October.
«Ukraine accounts for around 6% of global wheat exports and 11% of global corn exports and also remains one of the leading suppliers of oilseeds and vegetable oils. The continued blockage of the Black Sea ports could reduce supply on international markets and cause global food prices to rise. The uninterrupted operation of the ports of Greater Odesa is a key condition for supplying Ukrainian agricultural products and maintaining global food security,» the Minister stressed.
Taras Vysotskyi called on international partners to help ensure the safety of navigation in the Black Sea. According to him, even after vessel calls resume, Ukraine will need at least one month to return exports to their previous volumes.