Ukrainian business faced new challenges due to the crisis in the Red Sea

Vessels heading from Ukraine have to pass through the Cape of Good Hope. This creates additional costs.

Yevhen Osypov, CEO of the Kernel agricultural holding, said this in an interview with Forbes.

According to him, unfortunately, there are new challenges associated with the Red Sea. Russian goods or Chinese ships pass through this corridor almost without risk, but some of our ships have to bypass Africa.

“This is additional time and additional costs – about $20 per ton. When we’re talking about an exchange-traded commodity, $20 is a significant difference. However, today we are more stable from the point of view of being able to reach the markets and we will definitely keep them,” Yevhen Osypov explained.

He also added that there are many countries in the world that do not support European sanctions and continue to buy products from Russia. Currently, there is a lot of competition in the market of sunflower oil and wheat. In particular, the terrorist country produces and exports these goods from the occupied Ukrainian territories.

As previously reported by USM, the Kernel fleet provides 30% of oil exports.