Continuation of the Grain Agreement will not “save” the increase of freight prices
12.05.2023 - 16:30
The blocking of vessel inspections in the Bosphorus provokes an increase in the price of transportation of Ukrainian agricultural products.
“Even if, after all the ups and downs, the work of the “grain corridor” resumes, we understand that the price of freight will only increase,” said the general director of the Ukrainian Agrarian Confederation, Pavlo Koval, at a briefing in Ukraine Media Center Odesa.
According to him, in fact, Russia has not withdrawn from the Grain Agreement, but sets operational tasks and requirements for the work of the ship inspection commission in such a way as to delay their passage as much as possible.
“If until January six or seven ships passed through the corridor a day, now one or two ships pass a day. This drop is more than 3 times lower than the technical capability of the “corridor”, the expert emphasized.
The General Director of the Ukrainian Agrarian Confederation added that producers of agricultural products suffer the most from this. Also, according to him, the Russians manipulate inspections in order to interfere with the work of Ukrainian factories.
“There is a difference when vessels call for bulk and bulk goods. If the Russians do not allow several 30,000-ton tankers to load oil, they will stop two or three sunflower processing plants in Ukraine. And this is a much more expensive product. A processor buys sunflowers at one price, produces oil, and now he is waiting in line for several months and cannot ship this product. Firstly, he has a contract with the buyer, and secondly, he is paying for the layover of a vessel that has not yet arrived,” said Pavlo Koval.
He also emphasized the need to continue the Grain Agreement, because Ukraine is a permanent guarantor of food security in the world and a responsible player on global markets.
As previously reported by USM, on May 11, negotiations in Istanbul failed to approve the extension of the Black Sea Grain Initiative.The parties will continue negotiations in an online format.
