Ukraine proposes temporary halt to Black Sea civilian attacks as grain trade hit, report (File photo)
The Black Sea has been central to Ukraine’s agricultural exports since Russia launched its full-scale invasion in 2022. Russia withdrew from the arrangement in 2023. The development comes as Russia and Ukraine, both major players in global agricultural markets, accuse each other of escalating attacks on vessels and port infrastructure involved in exports. Ukraine has increasingly relied on alternative shipping arrangements after several shipowners stopped calling at ports in the Odesa region in late July following Russian attacks on vessels. Odesa is a key hub for Ukraine’s grain exports. A UN- and Turkey-brokered agreement initially allowed Ukrainian grain shipments to continue despite the war, helping ease concerns about a wider global food crisis.
Ukrainian grain exports have fallen 76% year-on-year so far in August , according to Reuters, while the country’s agricultural sector has warned that a prolonged disruption to Black Sea shipping could have major consequences for the wider economy.
Moscow temporarily halted operations at all three terminals at the Novorossiysk port for two days following a Ukrainian attack, according to Reuters. Russia has also faced disruption to its own Black Sea trade. The disruption is expected to put further pressure on Russia’s grain exports. The renewed disruption is already weighing heavily on Ukraine’s agricultural trade.