Ukraine closes ports, grain exports threatened after Russian invasion

by

Ukraine’s military has suspended operations at its ports after Russian forces invaded the country by land and sea, an aide to the president’s chief of staff said on Thursday, as concerns grew over the flow of supplies. of one of the world’s largest exporters of grains and oilseeds.

Russia had previously suspended the movement of commercial ships in the Sea of ​​Azov until further notice, but kept Russian ports on the Black Sea open for navigation, officials and five grain industry sources said.

Russian President Vladimir Putin authorized “a special military operation” against Ukraine on Thursday to eliminate what he called a serious threat, saying his aim was to demilitarize Russia’s southern neighbour.

“The market is still trying to get a clear picture of the actual military situation on the ground. The ports of Azov and the Black Sea so far appear to have been undamaged, according to initial reports from the shipping agency,” a grain trader said. European.

“The next step that will have to be tackled is any declaration of force majeure if ships simply cannot be loaded and contracts cannot be fulfilled,” the trader adds.

Russia, the world’s biggest wheat exporter, mainly ships its grain through ports on the Black Sea.

The Sea of ​​Azov is home to smaller-capacity shallow-water ports.

Azov’s seaports mainly export wheat, barley and corn to Mediterranean importers such as Turkey, Italy, Cyprus, Egypt and Lebanon.

“These countries would be forced to look for alternative supplies if the ships get stuck and cannot leave in the near future,” another European trader says.

Russia and Ukraine account for 29% of global wheat exports, 19% of world corn supplies and 80% of world sunflower oil exports.

You May Also Like

Recommended for you