Due to the two-month shutdown of the deep-water ports of Greater Odesa, Ukraine risks failing to export approximately 30 million tonnes of agricultural produce valued at an estimated $10 billion. Taras Vysotskyi, the Minister of Agrarian Policy, stated this on September 28, reported FACT informs about this. Reported by the PromPolitInform portal.
According to him, export volumes in September cover only 46% of requirements, while the capacity of alternative routes is limited. The minister noted that the capacities of Ukraine’s neighboring countries are already exhausted.
“There is a real risk that Ukraine will be unable to export about 30 million tonnes of agricultural produce. The total value of this volume is approximately 10 billion dollars,” said Taras Vysotskyi.
To increase exports, Ukraine is discussing the possibility of using ports in Germany and the Netherlands. Negotiations are also underway with neighboring countries regarding the transit of produce to traditional markets in North Africa, Southeast Asia, and the Middle East.
Vysotskyi noted that without the restoration of export capabilities, sown areas could shrink by 35–40% in the spring. According to his estimates, this could result in a loss of 5% of Ukraine’s GDP.
The additional transport requirements drive up logistics costs. Ukrainian agricultural producers cannot shoulder these expenses on their own without risking financial loss; consequently, Ukraine is discussing compensation for the added transport costs within the European Union with its partners.
The three deep-water ports of Greater Odesa have ceased operations following Russian attacks. Cargo is being rerouted to Danube ports and the Romanian port of Constanța.
