Home Business News Ukraine suffers a huge ‘shortfall of $1.5bn in agricultural exports’ due to ‘the blockade of Odesa and Mykolaiv ports’

Ukraine suffers a huge ‘shortfall of $1.5bn in agricultural exports’ due to ‘the blockade of Odesa and Mykolaiv ports’

by LLB Finance Reporter
30th Mar 22 2:49 pm

The Ukrainian Ministry of Agrarian Policy and Food said on Wednesday that due to the Russian invasion Ukraine has suffered a huge shortfall of $1.5bn in agricultural exports.

Prior to the invasion Ukraine exported up to five million tonnes f agricultural products through the ports of Odesa and Mykolaiv per month.

Due to the Russian blockade of these two ports, Ukraine can transport no more than 0.5 million tonnes of grain monthly leading to the huge shortfall.

Ukraine is in the TOP-3 food suppliers to the world market who ranks fifth in the world in wheat exports, fourth in corn sales, third in barley and first in sunflower oil.

Ukraine is also one of the global leaders in producing of nuts, rapeseed, peas, wheat flour, honey and other agricultural products to the world.

Ukraine are looking for European grain carriers to load their products because the rail tracks differ in size between the Ukraine and European track widths.

Everyday there are 30,000 tonnes of grain are sent by rail and the Ukraine could send double that amount, The Ministry of Agrarian Policy noted

“In Ukraine and Russia, as you know, the track width and rolling stock are different from the EU. Therefore, it is necessary to look for European grain carriers, reload products into narrow-gauge wagons.

“In Europe, this practice is not common, so there is a lack of locomotives, and traction, and transshipment points with terminals,” First Deputy Minister Taras Vysotsky is quoted in the message.

According to him, due to the current imperfection of the railway infrastructure, Ukraine will have to export within three years the grain stock, which is planned for export in one year.

“Nevertheless, together with our partners, we are doing everything to ensure that the processes of export transportation of products are intensified.

“As a world food leader, we are responsible not only for ourselves.

“Due to the war unleashed by Russia, dozens of countries will not be on the verge, but in the epicenter of hunger. We are working to prevent this,” Vysotsky said in the message.

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