Ukrainian agricultural exports have plummeted by 75% due to Russian attacks on ports – Reuters
Russian attacks on Ukrainian Black Sea ports have sharply reduced opportunities for agricultural exports. According to Reuters, grain exports fell by 75% year-over-year in the first two weeks of August, posing serious financial risks for Ukrainian farmers.
In July and early August, Russia carried out more than 70 attacks on Ukraine’s port infrastructure and 62 strikes on ships, the Ukrainian Port Authority reported.
Due to the accumulation of grain, domestic prices in Ukraine have fallen. Analysts estimate that at current prices, farmers can only turn a profit from wheat exports, while for other grains, they will be unable to cover production costs.
This poses risks for the upcoming planting season, as farmers are losing funds needed to purchase fuel, pay wages, and prepare for planting winter crops.
Reuters notes that Ukraine expects this year’s grain harvest to total about 60 million metric tons. At the same time, the shortage of grain storage capacity could reach 11 million metric tons.
According to the National Bank of Ukraine (NBU), Ukraine could lose about $2.5 billion in foreign exchange earnings by the end of the year due to the blockade. The All-Ukrainian Agrarian Council estimates farmers’ losses from rising logistics costs at approximately $3 billion.
Source: Reuters
As a reminder, Ukraine is launching an emergency aid program for farmers.
