Russia's Black Sea Strikes Bring Ukraine's Grain Corridor to a Standstill

Russian strikes on Black Sea shipping have brought Ukraine's grain corridor to a standstill since August 2023, according to Ag Bull Trading. The halt has caused farm prices for wheat and rapeseed to plummet in Ukraine, while their values rise abroad.

With ships no longer calling at Ukrainian ports, traders have stopped buying, and the grain destined for export has nowhere to go. The near-total shutdown of seaport trade has pushed down prices at the ports, where more than 90% of Ukraine's farm exports move through three deepwater Odesa ports.

The state has not imposed any restrictions, but shipowners have paused their own calls after a string of Russian strikes on civilian cargo ships. Agriculture Minister Taras Vysotskyi urged growers who can afford it to hold off selling and said Ukraine may need to store an extra 10-12 million metric tons of grain it cannot ship.

The damage from the strikes is not limited to the ports, as growers face rising costs for fuel, fertilizer, and equipment. Some are buying diesel on credit at about 87 hryvnias ($1.93) a liter, leaving little room to hold grain off a falling market.