Russia's Black Sea Blockade Devastates Ukraine's Economy

Ukraine's wheat prices have fallen below cost due to Russia's blockade of its ports. The blockade, which started two weeks ago, has led to a shortage of ships to load grain, causing traders to stop buying and drop their offers to farmers.

The head of Ukraine's main association of agricultural producers, Oleh Khomenko, explained that the price of wheat has fallen so low that farmers are selling it for less than it costs to grow. The central bank has measured the loss at $2.5 billion in export income gone in the second half of this year.

The blockade is also affecting Ukraine's iron ore exports, with Ferrexpo and Metinvest idling their operations due to the inability to ship their cargo. This is a significant blow to the country's economy, which relies heavily on these exports.