Ukraine's Black Sea ports lose a third of grain export capacity

Ukraine has lost about a third of its capacity to export grain via its vital Black Sea ‌ports due to intensifying Russian missile and drone attacks, the country's main farmers' union said.

More than four years into its war with Russia, agricultural exports like grains and vegetable oils remain Ukraine's biggest source of foreign currency earnings, with more than 90% shipped through three ports in the southern Odesa ​region.

Under a deal meant to allow both countries to ship grain through the Black Sea, the Odesa ports ​had been handling about 6 million metric tons of cargo a month.

Both Moscow and Kyiv are ⁠now stepping up attacks on key revenue sources, however, with Ukrainian forces hitting Russian energy infrastructure including oil tankers and ​Russia intensifying its attacks on the Black Sea ports in recent weeks.

"Russia has begun systematically striking port infrastructure, terminals and the ​entire transport logistics chain, using ballistic missiles again and again," the trading department of Ukrainian farmers' union UAC said in a weekly report released late on Tuesday.

"On average, we can now ship about 4 million metric tons of grain a month," it added.

Ukraine's economy ministry was due to hold ​a meeting on Wednesday to discuss the port attacks.

Ukraine has in recent seasons accounted for ​about 6% of global wheat exports and about 11% of global corn exports, meaning that the disruptions, if prolonged, could have an impact ‌on global ⁠markets.

While the ports have continued to operate, UAC warned that, if the current intensity of attacks continues and no repair work is carried out, infrastructure could be significantly damaged within several months.

Industry sources, meanwhile, told Reuters that traders are struggling with logistics headaches.

"The ports have not ground to a halt, but traders are facing problems with procurement, sales, shipments, cargo accumulation, prices and freight," ​a senior industry official told ​Reuters.


-Reuters