Ukraine Scrambles to Restart Black Sea Grain Exports

Ukraine is exploring ways to expand insurance coverage for commercial vessels carrying agricultural exports as Russian attacks increasingly disrupt shipping in the Black Sea.

The aim is to encourage shipowners to return to the ports of Greater Odesa, which previously handled up to 90% of Ukraine’s agricultural exports. Russian missile and drone attacks have effectively halted much of the traffic, with major shipping companies reluctant to risk their vessels.

Grain shipments fell 60% in August from the previous month, threatening farmers’ ability to finance the 2027 planting season. Alternative routes by rail, road and through Danube ports cannot make up for the lost Black Sea capacity.

Ukraine produces far more grain than it consumes domestically and depends heavily on exports. A prolonged blockade risks leaving millions of tons of crops unsold, filling storage facilities, depressing domestic prices and leaving farmers without enough cash to plant next year’s crops.

The government is therefore working to strengthen financial support for agricultural producers and improve mechanisms that could help restore maritime exports.

Farmers are also gaining greater access to loans backed by stored agricultural products. Ukraine’s central bank has raised the collateral ratio for agricultural goods from 0.4 to 0.75, allowing producers to borrow more against stored grain and other crops rather than selling them at depressed prices.

(Reuters, max)