Black Sea Attacks Shut Down Grain Exports, Prices Soar

Escalating attacks on Black Sea ports and cargo vessels have crippled a vital global grain trade route, threatening supplies to food-importing nations and driving prices higher.

Russia and Ukraine, two of the world's largest agricultural exporters, have lost over 97% of their grain export capacity in the Black Sea and Sea of Azov compared to last season. The two countries exported an average of 7.2 million tonnes of grain per month through these terminals during the previous marketing season, but that trade has now been almost entirely halted.

Ukraine's major Black Sea ports have stopped grain shipments, while most of Russia's largest grain terminals have suspended operations following a series of attacks. The only Russian grain export facility still operating is a small terminal in Tuapse, with an estimated monthly capacity of 160,000 tonnes - a fraction of usual export volumes.

The shutdowns are already hitting global agricultural markets, with benchmark wheat prices rising by about 6.5% this month and now roughly 30% higher than a year ago. Countries across the Middle East, Africa, and Asia may increasingly have to turn to exporters such as the US and Australia, where grain is generally more expensive.