According to journalists’ interlocutors, the escalation in the Black Sea will hit Russia’s export volume, as shipping companies are hesitant to send their ships to Russian ports.
Russia’s lack of ships and Western grain traders’ decreased interest in doing business with Moscow are driving rising wheat shipping costs. Russian grain exporters are facing increasing difficulties in exporting products to world markets due to the worsening situation in the Black Sea, Reuters reported.
In a conversation with journalists, Eduard Zernin, head of the Russian Union of Grain Exporters, referred to the possible strengthening of so-called “hidden sanctions” for Russia, which “could lead to an increase in freight and insurance costs”. This “will be reflected in the prices of wheat and other grains on the world market.”
Global commodity companies no longer help Russia with the mechanisms for trading grain. Cargill, Louis Dreyfus, and Viterra discontinued such studies on July 1. Denmark’s NORDEN and two other Western maritime groups, whose names have not been named, told Reuters they had terminated co-operation with Russia following the invasion of Ukraine in February 2022.
While the Black Sea remains a critical region for Russia’s exports, other regions are more complex and costly.
A shipping source told the agency that even before insurance due to the collapse of the deal and the escalation of the conflict in the Black Sea, ship operators were charging $10,000 more per day for Russian cargo than for cargo departing from nearby ports in Bulgaria and Romania. risks. And after the Ukrainian attacks, the risk increased even more. About 70% of the country’s grain exports pass through Russia’s terminals in the Black Sea. Among them are the ports of Novorossiysk and Taman.
The escalation in the Black Sea will hit Russian exports, as shipping companies are already cautious about sending their ships to Russian ports, especially new ones with larger loads, according to two Reuters sources.
Recall, on July 21, it was reported that Turkey would take measures “without hesitation” to protect the grain agreement. According to the Turkish leader, the grain agreement is a “vital undertaking” for humanity and its annulment will have consequences.
Earlier, on July 17, the head of the Grain Association of Ukraine, Nikolai Gorbachev, said that the Turkish fleet will be able to secure the grain corridor without the participation of the Russian Federation.
Source: Focus
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