Ukraine Considers Using Newly-Tested Black Sea Export Corridor for Grain Shipments
KYIV, Aug 21 – Ukraine is exploring the possibility of utilizing its newly-tested wartime Black Sea export corridor for grain shipments following the successful evacuation of a vessel along the route last week, according to a senior agricultural official on Monday.
Since Russia invaded Ukraine in February 2022, Ukrainian ports have been blockaded, and Russia has threatened to treat all vessels as potential military targets. Furthermore, Russia pulled out of a U.N.-backed safe-passage agreement for Black Sea grain exports just last month.
In response to the blockade, Ukraine unveiled a “humanitarian corridor” along the western Black Sea coast near Romania and Bulgaria. Last week, a Hong Kong-flagged container ship that had been stuck in Odesa port since the invasion safely traversed the route without being fired upon.
Denys Marchuk, deputy head of the Agrarian Council, Ukraine’s largest agribusiness group, stated, “Only one commercial vessel has passed through so far, (and this) has shown readiness to move by alternative routes.” He added, “Further, there should be a movement of potentially 7-8 more ships… then perhaps in the future these alternative routes will become a corridor for the movement of ships that are traveling with cargoes of grain and oilseeds.”
According to British newspaper Financial Times, Kyiv is currently finalizing a scheme with global insurers to cover grain ships traveling to and from its Black Sea ports. The Ukrainian Deputy Economy Minister, Oleksandr Gryban, confirmed these reports.
Ukraine is a major global grain grower and exporter, traditionally shipping millions of metric tons of food from its deep-water Black Sea ports of Odesa and Mykolaiv. However, since Russia abandoned its part in the year-old safe-passage deal, Ukraine has had to rely on its Danube river delta ports in the country’s southwest corner.
In an effort to attract ship owners to Ukrainian ports, which have been targeted by Russian forces, Marchuk revealed that Ukraine has allocated 20 billion hryvnias ($547 million) for ship insurance.
Despite the mechanism of compensation for potential losses, Mykola Gorbachov, head of Ukrainian grain traders union UGA, expressed doubt that many ship owners would be willing to utilize the temporary corridors. He raised concerns about the time it takes to load a ship in Greater Odesa ports and the risk of damage to ships and cargo if the port infrastructure is targeted during that time.
Gorbachov suggested that a mechanism should be established to ensure the security of civilian ships in the temporary corridors, possibly through military escorts. He stated, “NATO ships will be able to respond to threats, including missile attacks on port infrastructure.”
Ukraine is actively exploring alternative options to ensure the continuation of its vital grain exports, seeking ways to bypass the Russian blockade and provide security for its ships. With ongoing negotiations and tests of the Black Sea export corridor, Ukraine aims to overcome the challenges posed by Russia’s aggression and maintain its position as a major player in the global grain market.
($1 = 36.5600 hryvnias)
Reporting by Pavel Polityuk; editing by Philippa Fletcher and Mark Heinrich