PIXABAY

May 25, 2022

Ukraine Grain Exports Halted by Russian Blockade

Act is seen as 'deliberate attack' on global food chain

Newly declassified U.S. intelligence shows that a Russian naval blockade has halted maritime trade at Ukrainian ports, in what world leaders call a 'deliberate attack' on the global food supply chain that has raised fears of political instability and shortages unless grain and other essential agricultural products are allowed to flow freely from Ukraine.

Russia’s navy now effectively controls all traffic in the northern third of the Black Sea, making it unsafe for commercial shipping, according to a U.S. government document obtained by The Washington Post.

Safe corridors needed to transport grain

Western powers have been discussing the idea of setting up "safe corridors" for grain exports from Ukraine's ports, adding that any such corridor would need Russian consent.

The European Commission offered its EU-Ukraine Solidarity Lanes strategy.

With its initiative, the commission sets out an action plan to establish ‘Solidarity Lanes' to ensure Ukraine can export grain, but also import the goods it needs, from humanitarian aid to animal feed and fertilizers.

"There are 20 million tonnes of grains have to leave Ukraine in less than three months using the EU infrastructure," said Commissioner for Transport Adina Vălean.

Vast amounts of Ukraine's grain is stuck in silos because access to ports like Odesa and Mariupol is closed. The July export deadline is both because the grain is needed to meet demand but also to free up silo capacity for the next harvest.

The country needs to move millions of tons of grain to earn cash and to prevent a food crisis in the Middle East and Africa.

International community needs to step up to avoid food crisis

The international community should help create a "safe passage" to enable the millions of tons of grain stuck in Ukraine to leave the country, said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine. She told the BBC that some sort of "corridor" was needed.

Svyrydenko, who is also Ukraine's Minister of the Economy, urged the international community to help lift the blockade of the country's sea ports.

She said this could be a "solution" allowing Ukraine to export the grain currently stuck in its silos and unable to be shipped.

She hinted that military means might be necessary to achieve this.

Russia offers safe corridors -- with conditions

According to a Reuters report, Russia is ready to provide a humanitarian corridor for vessels carrying food to leave Ukraine, in return for the lifting of some sanctions, the Interfax news agency cited Russian Deputy Foreign Minister Andrei Rudenko as saying on Wednesday.

Rudenko was also quoted by Interfax as saying that possible escort by Western ships of Ukraine's vessels carrying grain would "seriously exacerbate the situation in the Black Sea."

Lisa Cleaver

Sponsored Items

Recently Added to Buyer's Guide

AgraStrip Pro GMO Rapid Test Kits

  • Independent, simultaneous testing of up to four samples
  • Limits of detection as low as 0.1%

Granulex 5

  • Up to 30% reduction in energy consumption per ton
  • Connects to Bühler Insights to enable 24/7/365 data-based decision making

Automated Extrusion Control Systems

  • Designed for increased efficiency, higher production rates, reduced waste
  • Consistent results and quality across production lines, shifts and plants

Catwalks & Towers

  • Includes handrail trusses, outrigger trusses, and walk-thru truss style catwalks with standard spans over 200 feet
  • Welded sections and panels allow for easy field assembly while maximizing freight

Market+ Merchandise

  • Bid Management to upload or enter bids, easily adjust basis and other details, and publish to originators and farmers
  • Competitive insights to see how bids compare to other nearby bids

Hydro-Mix XT-FS Sensor

  • Designed to measure moisture in flowing material where there is a food safety requirement
  • Installed in ducting, conveying and mixing systems in process control environments

Magazine

Marketwatch: Dec, 06

US Corn Price Idx: ZCPAUS.CM

open: 6.5328
high: 6.55
low: 6.4408
close: 6.4673

US Soybean Price Idx: ZSPAUS.CM

open: 14.2059
high: 14.2809
low: 14.1255
close: 14.1516

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.3708
high: 8.3933
low: 8.0459
close: 8.0561

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 6.9245
high: 6.947
low: 6.6307
close: 6.6779