The attack on a Ukrainian grain hangar on the Danube, an alternative shipping route that has become an economic lifeline, is taking shape Ukrainian grain exports very difficult.
Opportunities are dwindling for shipping companies looking for a way to get Ukrainian grain to world markets, leading to an escalation of a trade crisis that is expected to put pressure on global food prices, the New York Times said.
The Russian government announced its withdrawal on July 17 Trade agreements during the war This allowed Ukraine to ship grain exports across the Black Sea to other countries in the Middle East, Africa and Asia.
Continue reading: Russia withdraws from war grain deal with Ukraine
On July 24, they threatened an alternative route for grain, attacking a grain hangar at a Ukrainian port on the Danube that served as a major artery for shipping goods while the Black Sea remained blocked. A grain depot was also available destroyed in the Black Sea port city of Odessawhich, according to BBC News, was attacked almost every night.
Hours before dawn after the attack on the hangar in the port of Reni, dozens of ships were lying at the mouth of the Danube, supposed to be collecting grain from Ukraine.
Global markets have ample grain supplies due to robust harvests in Brazil and Australia, but a continued lack of exports from Ukraine is likely to make prices more volatile in the event of drought, flooding or other extreme weather events. Russia escalated its attacks on Ukraine after India, a top rice producer, halted exports of non-Basmati white rice on July 21 because extreme weather hampered production and pushed up domestic prices.
Continue reading: India bans some non-Basmati rice exports in a bid to control prices
Even before Russia withdrew from the Black Sea Agreement last week, Ukraine, which produces about 10 percent of the world’s wheat and 15 percent of its corn, was increasingly relying on alternative routes for its exports: by land and via the Danube, Europe’s second-longest river. Shippers used these options in anticipation that Russia would eventually pull out of the Black Sea Agreement.
