Ukraine's Grain Exports Crushed by Russian Blockade

Russia's naval blockade of Ukraine has crippled grain exports, sending global wheat prices to a two-year high. Ukraine is often called the breadbasket of the world, supplying around 10% of global wheat exports and significant amounts of corn and sunflower oil.

Before the war, Ukraine shipped around 5-6 million metric tons of grain per month, but that has been cut to a trickle due to the blockade. The country's biggest grain exporter, Kernel, says exports have virtually stopped, leaving around 1 million metric tons of grain sitting in storage.

Kernel's CEO, Yevgen Osypov, warns that if the blockade continues, farmers will leave land unplanted next spring, resulting in a 20% reduction in production and a loss of 12 million tons of food grains. This would severely impact developing nations that rely heavily on Ukrainian grain for basic food supplies.

Kernel is diversifying its business by building wind farms, which Osypov sees as more resilient to disruptions than traditional power generation methods. The company aims to develop 1 gigawatt of renewable energy capacity in Ukraine by 2030.