Black Sea Port Blockade Drives Up Grain Export Costs in Ukraine

The current logistics system in Ukraine is struggling to compensate for the lack of access to the Black Sea, resulting in increased costs for grain exports. According to Oleg Khomenko, CEO of the UCAB association, alternative routes are challenging both in terms of cost and capacity.

The additional cost of shipping to alternative destinations ranges from 50 to 90 euros per metric ton, making Ukrainian grain less competitive on the market. This increased cost is also draining farmers' funds and reducing the inflow of foreign currency into the country.

The situation is compounded by the fact that the fall planting season is just beginning, and farmers urgently need funds to plant their fields in the spring. However, they have nowhere to store their grain or sell it, making the coming months particularly challenging.