FESCO Suspends Black Sea Orders Amid Escalating Russian-Ukrainian Attacks
Russia's FESCO, one of the country's largest logistics operators, has suspended new shipment orders via the Black Sea following last week's Ukrainian drone attack on its vessel. The attack damaged the Yanina, which was transporting goods such as frozen food and construction materials, causing it to sink in the Black Sea.
The disruption is part of a growing escalation of attacks between Russia and Ukraine, with both sides targeting each other's vessels and ports. This has pushed wheat prices higher on global markets, with Russia being the world's largest wheat exporter. FESCO specializes in container shipments by rail and sea, and its suspension of new orders highlights the significant impact these attacks are having on shipping.
Russia's state nuclear corporation Rosatom owns 92.5% of FESCO, and has been affected by the Ukrainian drone attacks. Alternative grain export routes from Ukraine are being explored, but would not be fully operational until at least the end of August, covering only half of volumes handled by Black Sea ports disrupted by Russian attacks.