In July and August, the first two months of the new season, the volume of cargo transported from Russia decreased by 22 percent compared to the previous year, to 6.3 million. tons. In August Ukraine resumed cargo supply and exported 1.5 million tons of food products through grain corridors created under an agreement brokered between the United Nations (UN) and Turkey.
Although the volume of cargo transported from Ukraine’s Black Sea ports is barely more than a quarter of the pre-war volume, the Government hopes that the volume of cargo transportation will increase in the coming months. But slow Russian wheat exports are putting pressure on global supplies as droughts ravage crops elsewhere. Food is exempt from Western sanctions, but bankers and insurers are wary of doing business with Russia, and shipping lines are avoiding sending their ships into a war zone.
“We face reputational risk or unofficial sanctions,” Dmitry Rylko, director general of the Moscow-based institute IKAR, said in an interview. “This creates problems in trying to find ships in the direction of the Russian Black Sea, and we find that some banks do not want to issue letters of credit for wheat of Russian origin.”
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