13:34 30.03.2022

Ukraine suffers shortfall of $1.5 bln in agricultural exports since beginning of war - Agrarian Policy Ministry

3 min read
Ukraine suffers shortfall of $1.5 bln in agricultural exports since beginning of war - Agrarian Policy Ministry

Before the Russian military invasion, Ukraine exported monthly up to five million tonnes of agricultural products through the ports of Odesa and Mykolaiv, however, due to the blockade of these ports by the aggressor country of the Russian Federation, Ukraine can transport no more than 0.5 million tonnes of grain monthly, which led to $1.5 billion shortfall in export earnings since the start of the war.

Such data were published on the website of the Ministry of Agrarian Policy and Food on Wednesday.

The ministry reported that due to Russian aggression, Ukraine can now export agricultural raw materials only through the ports of the Danube, by rail and by road, and each type of transportation is associated with certain problems.

The agency clarified that the Danube ports now account for about a third of Ukrainian agricultural exports, but since earlier this export route was practically not used due to economic inexpediency, now it does not have a sufficient number of barges, berths and transshipment terminals to meet the sharply increased demand for transportation.

The Ministry of Agrarian Policy noted that now up to 30,000 tonnes of grain are sent by rail every day, and the country could export twice as much, but exports get stuck because of difference between the Ukrainian and European track widths.

"In Ukraine and Russia, as you know, the track width and rolling stock are different from the EU. Therefore, it is necessary to look for European grain carriers, reload products into narrow-gauge wagons. In Europe, this practice is not common, so there is a lack of locomotives, and traction, and transshipment points with terminals," First Deputy Minister Taras Vysotsky is quoted in the message.

According to him, due to the current imperfection of the railway infrastructure, Ukraine will have to export within three years the grain stock, which is planned for export in one year.

"Nevertheless, together with our partners, we are doing everything to ensure that the processes of export transportation of products are intensified. As a world food leader, we are responsible not only for ourselves. Due to the war unleashed by Russia, dozens of countries will not be on the verge, but in the epicenter of hunger. We are working to prevent this," Vysotsky said in the message.

The Ministry of Agrarian Policy recalled that the export of agricultural products in 2021 accounted for the largest share in all-Ukrainian exports - about 41%.

In addition, Ukraine is in the TOP-3 food suppliers to the world market. It ranks fifth in the world in wheat exports, fourth in corn sales, third in barley and first in sunflower oil. Ukraine is also one of the leaders in the production of nuts, rapeseed, peas, wheat flour, honey and other agricultural products.

AD
AD
AD
AD