KYIV/MOSCOW: Attacks on shipping have shut down more than 97 percent of Russia and Ukraine’s grain export capacity in the Azov and Black Sea basin, cutting off a major source of low-cost supplies and helping to drive up global prices.
The two major grain exporters have intensified attacks on ports and shipping over the past month, leaving importers in the Middle East, Africa and Asia facing the prospect of sourcing grain from higher-cost suppliers such as Australia and the United States.
Russia and Ukraine together exported an average 7.2 million metric tons of grain a month from terminals in the Azov and Black Sea region last season, according to Reuters calculations based on official data and analyst estimates.
There are currently no shipments from Ukraine’s Black Sea terminals. In Russia, the only grain terminal not officially shut is a small facility in Tuapse with capacity of about 160,000 tons per month, officials and trade sources say.
The shutdowns represent a loss of more than 97 percent of grain export capacity compared with last season, Reuters calculations show.
