Black Sea War Threatens Ukrainian and Russian Grain Exports

Russian attacks on Ukrainian Black Sea ports are beginning to seriously disrupt grain exports from Ukraine and are also affecting the global market. Moscow has intensified its attacks on ports in Odesa and on merchant ships in recent days, apparently in response to Ukrainian strikes on Russian vessels in the Sea of Azov, the Financial Times reported.

The security situation is deterring shipping companies. Several traders have suspended grain purchases and shipping insurance premiums have risen sharply. Some insurers have even stopped covering war risks for voyages to Ukrainian ports.

The attacks have also damaged storage facilities in Odesa and have claimed 11 lives over the past two weeks, according to Ukrainian authorities.

The export disruptions are also affecting commodity prices, with wheat reaching multi-year highs on exchanges in both Chicago and Paris. Analysts warn that long-term restrictions on exports from both Russia and Ukraine could worsen the global grain supply situation.

(mja)