Some wheat exporters fail to meet contracts due to Russian strikes on ports – Reuters

Russian attacks on Ukraine's port infrastructure could lead to a significant drop in trade.

Source: Reuters, citing the Ukrainian Agri Council (UAC)

Details: The UAC trade union said that some wheat exporters have already failed to fulfil cargo delivery contracts this month.

According to UAC data, as of 22 December, only 375,000 metric tonnes of wheat had been exported out of the 1 million tonnes contracted for delivery throughout December.

Regarding maize, 1.5 million tonnes have so far been shipped out of the 2 million tonnes contracted. For sunflower oil, 275,000 tonnes have been shipped out of 410,000 tonnes contracted, and total exports for the month are unlikely to exceed 350,000 tonnes.

Quote: "Ukraine's food exports have already been harmed by intensified Russian attacks on ports this month, which could lead to a significant drop in trade despite efforts to divert shipments to rail."

Details: Most of Ukraine's food exports have recovered since 2023. But this month has seen a surge in almost daily Russian drone and missile attacks on ports in Odesa Oblast, and this has reduced export capacity.

The UAC estimates that at least one of the three key export ports is either not operating or is running at only 20% of capacity.

Logistics routes linking the rest of Ukraine to Danube River ports have also been damaged, the UAC noted. River ports have helped compensate for the loss of major seaports since the start of the war.

"Russia is attacking our ports, reducing our export potential... Without deep water and river water, our exports will decline significantly," the UAC said.

In December last year, Ukraine exported 800,000 tonnes of wheat, 2.6 million tonnes of maize and 378,000 tonnes of sunflower oil.

Background:

• On the night of 22-23 December, a Lebanese-flagged civilian vessel carrying Ukrainian soybeans was damaged in Odesa port as a result of a Russian attack.
• Ukraine and Moldova have been discussing alternative transport routes after a Russian strike hit a bridge near the village of Maiaky in Odesa Oblast.

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