Аgricultural news of Ukraine

Russia's attack on Ukrainian ports 07/19/2023

On the night of July 19, Russia once again showed its barbaric nature by carrying out a terrorist attack - a targeted air attack on civilian buildings and grain terminals located in one of the country's key ports. According to military sources, the attack was aimed at destroying the infrastructure that ensures grain exports from Ukraine. This unexpected and destructive action created a wave of fear and uncertainty in the world grain market, but not in Ukraine, where workers in this industry became even more united and focused on developing alternative export routes. And despite these temporary troubles, Ukrainian exporters find ways to fulfill international trade agreements.

Consequences of the attack for the world grain market

The consequences of this attack were felt instantly and extended far beyond the borders of Ukraine. Key consequences include:

1. Possible decrease in export potential

Marine grain terminals are vital for Ukraine's export potential. The attack resulted in extensive damage and destruction to the terminal infrastructure, halting export operations for a period of time. This caused serious restrictions on the export of grain and oilseeds from the country and significantly affected the demand and prices for grain on the world market.

2. Increased demand for grain in other countries

After the attack on Ukrainian grain terminals, the world market faced a significant decrease in available grain from this region. This led to an increase in the demand for grain from other countries, which compensates for Ukraine's losses. This increased demand has driven up grain prices in many parts of the world.

3. Negative impact on food security

Ukraine occupies one of the key places in the world export of grain, and a decrease in its export potential can lead to problems with food security in various regions. Countries that previously depended on grain imports from Ukraine are now looking for alternative sources of grain crops or other import routes, which creates temporary instability in the market and may affect the availability of food products for the population.
Impact on the global economy

1. Losses for the Ukrainian economy

The attack on grain terminals had a serious impact on Ukraine's economy. Local damage to infrastructure and the cessation of maritime export operations led to losses in the millions for the country.

2. Changes in the global grain market

The decrease in the export of grain by sea from Ukraine led to the reorganization of the global grain market, the redistribution of market shares and changes in grain price dynamics.

The attack on the grain terminals in the ports of Ukraine had a serious impact on the world market of grain and oil crops on the global economy. The partial destruction of the terminal infrastructure led to a decrease in the maritime export potential of Ukraine and affected the demand and prices for grain in Europe. It should be noted about the likely growth of exports by trucks and by rail, which will lead to a load on grain terminals that have appropriate capabilities in this direction (storage, location, transshipment to all types of transport). Also, this situation may affect food security in some regions where Ukraine was a key supplier of grain crops, but not critically. It is necessary to pay attention to the global context and direct efforts to ensure the stability and security of the world grain market.