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Ukraine Plans to Export 50 Million Tons of Grain through Alternative Routes

July 26, 2023
Ukraine Plans to Export 50 Million Tons of Grain through Alternative Routes
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On Wednesday, the Ukrainian Deputy Head of the Agricultural Council, Denis Marshuk, announced that the country aims to harvest 69 million tons of grains and oilseeds this year, potentially exceeding Ukraine’s export capabilities of 50 million tons.

Marshuk stated, as reported by the official Ukrainian news agency “Ukrinform,” that the country’s transportation routes primarily rely on railways and roads.

However, difficulties arise due to the blockade of Ukrainian exports by five Eastern European countries, leading to a reduction in transportation flow in that direction.

Before the imposed ban on exports, Ukrainian railways were able to transport over a million tons monthly, while road transport handled exports ranging from 600,000 to 700,000 tons per month.

But after the ban, the railways are only expected to transport around 600,000 tons.

“The challenges were more significant last year when we had no exports for half a year, and we had a very large quantity of transitional balances, exceeding 20 million tons. In these circumstances, we had to quickly look for alternatives, but that did not happen swiftly. The work only started in August when the Black Sea Initiative was activated. However, investments came to a halt after the ban on Ukrainian product imports,” Marshuk added.

He emphasized that Ukraine needs more air defense systems and weapons to deter Russian attacks. Unfortunately, the world’s response has been remarkably weak, turning Russian aggression into a threat to global food security and causing food prices to rise.

Consequently, food inflation might surge. This situation could lead to problems for poorer countries, with increased risks of hunger and migration, turning into a crisis for affluent nations, including the European Union.

Tags: Grain DealRussiaUkraine
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