Attacks on ports forced NIBULON to review grain purchase prices

The company is reorienting itself to its own capacities on the Danube in order to be less dependent on the Black Sea route, which is regularly attacked by the Russian Federation.

NIBULON will form purchase prices for grain taking into account additional costs for alternative export routes. This was reported by the company’s trade director Volodymyr Slavinsky in a comment to Latifundist.

According to him, despite the difficult security situation, the company continues to purchase grain and has sufficient capacity to receive and store the new harvest.

“The shelling of seaports and civilian vessels directly affects export logistics and market pricing. In this regard, in the current period, purchase prices at NIBULON’s elevators will be set at a level that covers additional costs for alternative logistics routes, and purchases in Black Sea ports are temporarily limited,” Slavinsky noted.

At the same time, he emphasized that the company has its own transshipment capacities on the Danube, which allows it to diversify export routes and not be completely dependent on the work of Black Sea ports. In addition, NIBULON confirmed its readiness to provide partners with grain and oilseed storage services at its own elevators.

“We continue to work, closely monitor the situation and will overcome crisis situations together with our partners,” the company’s trade director concluded.

NIBULON’s decision came against the backdrop of a series of Russian attacks on the port infrastructure of the Odesa region and civil shipping. The Sea Ports Administration of Ukraine emphasizes that such attacks are a deliberate attempt by the Russian Federation to disrupt the stable operation of Ukrainian ports and intimidate international shipping.

As USM wrote the day before, Russian attacks have already reduced grain exports through the ports of Great Odesa by a third.