“Nibulon” reduced exports by 88% due to the blockade of Mykolaiv port

As a result of the blocking of Mykolaiv port by the actions of the russian fleet, the company “Nibulon” reduced its exports by 88%.

From March to August, the company reduced exports by 88% due to the loss of the ability to use the usual routes through the port of Mykolaiv. The head of the company, Andrii Vadaturskyi, stated this in an interview with Politico.

According to him, “Nibulon” diverted part of the exports by rail and motor vehicles, and also uses river transportation. The company is currently building a new terminal on the Danube in order to protect itself from disruptions in the future.

However, land routes are much more expensive than sea routes. On average, logistics costs increased 10-40 times, depending on the route. Exports through Poland and Romania were also slow, due to red tape at the border, Vadaturskyi noted.

Also, the chairman of “Nibulon” believes that Western governments and creditors should urgently expand financing opportunities and ensure flexibility during the repayment of the company’s debt. Vadaturskyi expects that in the future the “grain corridor” will be extended to Mykolaiv Port, which accounted for a third of Ukrainian exports until February 24.