Ukraine exports almost all its commodities through Black Sea ports now blocked due to the Russian invasion.
The government did not provide details of the insurance system but instructed the infrastructure ministry to develop a plan
Marine fuel sellers have stopped serving vessels flying the Russian flag at major European hubs including Spain and Malta in another blow to Moscow’s exports, five industry sources with knowledge of the matter told Reuters
Ukraine, a major producer of grain, oilseeds and steel products, will guarantee insurance payments to cargo vessels damaged in hostilities on its stretch of the Danube, according to the government decision published on Friday.
Ukraine exports almost all its commodities through Black Sea ports now blocked due to the Russian invasion.
The Danube, the second-longest river in Europe, flows through eight countries from the mountains of western Germany to Ukraine and the Black Sea.
“We are talking about the possibility of fully-fledged work at only three Ukrainian sea ports: Reni, Izmail, Ust-Dunaysk. Their role takes precedence,” the Ukrainian infrastructure ministry said on social media.
The government did not provide details of the insurance system but instructed the infrastructure ministry to develop a plan.
Ukrainian agriculture analysts have said the country, which exported 43 million tonnes in the peace period of 2021/22 July-June season, could export only around 1 million tonnes of grain in the next three months, due to logistics difficulties.
Before the war, the government said the grain exports could reach 65 million tonnes this season.
Ukraine was the world’s fourth-largest grain exporter in the 2020/21 season, International Grains Council data shows.
Russia sent troops into Ukraine on Feb. 24 in what it calls a “special military operation” to demilitarize the country. Western countries call it an unprovoked war of aggression.
Meanwhile, marine fuel sellers have stopped serving vessels flying the Russian flag at major European hubs including Spain and Malta in another blow to Moscow’s exports, five industry sources with knowledge of the matter told Reuters.
Losing access to refuelling points in the Mediterranean Sea poses major logistical problems for Russian oil tankers going from Baltic ports to Asia and also creates safety concerns over potentially being stuck at sea with flammable cargoes, shipping sources say.
Russia is reeling from a wave of severe economic sanctions on its banks and oligarchs and foreign companies are cutting ties after Moscow’s invasion of Ukraine, which Russian President Vladimir Putin calls a special military operation.
Multiple factors have prompted the halt in refuelling services, including what sources have described as “self sanctioning” where companies try to stay ahead of the next wave of measures by refusing to enter into contracts with Russian entities.
Payment problems due to banking restrictions have also added to complications with deals for marine fuel, which is typically priced and paid for in U.S. dollars.
One source said Russian-flagged ships couldn’t secure marine fuel in Malta, the British overseas territory of Gibraltar or neighbouring Algeciras in Spain – all major bunkering, or refuelling, zones in the Mediterranean. “Several tankers had to take a longer journey in order to bunker in other countries after European ports refused to provide fuel,” said another source who was familiar with one of the tanker’s movements.
Reuters