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Ukrainian Grain & Oilseed Market

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Agriculture hit hard: October port strikes rack up 30-40 million dollars in losses

25.10.2024 22:50 "Agro Perspectiva" (Kyiv) — Agricultural losses following October’s attack on Ukraine’s port infrastructure are estimated to reach between 30 million and 40 million USD, according to preliminary figures.

First Deputy Minister of Agrarian Policy and Food Taras Vysotskyi shared the update during a briefing at Media Center Ukraine.

«It’s challenging to give a final estimate since the damage keeps mounting and insurance companies are still reviewing claims. The heavy shelling earlier this month alone already accounts for tens of millions in damages, with the most extreme cases pegged at 30–40 million dollars,» Vysotskyi stated.

As Agro Perspectiva early reported,

Russia has stepped up attacks on Ukrainian port infrastructure in the Black Sea, delaying vital aid from reaching Palestinians, and stopping crucial grain supplies from being delivered to the global south.

Grain ships collateral damage in the Black Sea as Russian risk appetite increases, UK intelligence shows.

Prime Minister calls out Russia’s actions, saying the Black Sea strikes underscore that Putin is willing to risk anything in attempts to force Ukraine into submission.

UK and Norway at the forefront of protecting the corridor, funding cutting edge maritime capabilities for Ukraine to ensure grain can reach the global south.

The acceleration in attacks coincides with harvest season in Ukraine, a country which remains a major supplier of agricultural produce, crucial for global food security.

Putin’s almost 1000-day conflict in Ukraine has reduced supplies for some of the world’s most in need and helped drive up food and fuel prices across the globe.

Now, UK intelligence shows that there has been a noticeable increase in Russian risk appetite when conducting strikes on port infrastructure, with grain ships becoming collateral damage in Russia’s campaign.

Those strikes are believed to have delayed the MV SHUI SPIRIT from departing Ukraine while carrying vegetable oil destined for the World Food Programme in Palestine.

It has also hit ships loaded with grain destined for Egypt, two vessels carrying corn - which Ukraine is the second biggest supplier to China of - and World Food Programme shipments bound for southern Africa.

Prime Minister Keir Starmer said:

«Russia’s indiscriminate strikes on ports in the Black Sea underscore that Putin is willing to gamble on global food security in his attempts to force Ukraine into submission.

‘’In doing so, he is harming millions of vulnerable people across Africa, Asia and the Middle East, to try and gain the upper hand in his barbaric war.

»In recent weeks, we have seen reporting that the Kremlin has been forced to turn to North Korea to provide troops to fuel its self-destructing war machine, an embarrassing and desperate act, and now they are intensifying attacks on areas of Ukraine that support the global south with much-needed food.

«Russia has no respect for the norms and laws that govern our international system. Not only was their illegal invasion a blatant attack on the principles of the UN Charter, but the way they have executed their war in Ukraine shows no respect for human life, or the consequences of their invasion across the world.»

According to Defence Intelligence, between 05 - 14 October 2024, at least four merchant vessels have been struck by Russian munitions.

These include:

1. 05 October 2024 - Yuzhny port - MV PARESA (St Kitts and Nevis flagged) was almost certainly the target of the strike that damaged it. Following the attack, the Russian MoD released a video of what they say shows the vessel unloading containerised cargo which they likely perceive to be weapons.

2. 07 October 2024 - Odesa port - MV OPTIMA (Palau flagged). There is a realistic possibility that the vessel was collateral damage as a result of a strike on port infrastructure and was not the direct target of the attack. MV OPTIMA was also likely further damaged in a strike on port infrastructure on 15 October 2024.

3. 08 October 2024 - Chronomorsk port MV SHUI SPIRIT (Panama flagged).Ukraine’s Minister of Agrarian Policy and Food Vitalii Koval stated the MV SHUI SPIRIT was carrying sunflower oil as part of a UN shipment. However, the vessel was a containerised cargo carrier and noting the earlier strike on MV OPTIMA, there is a realistic possibility that this vessel was also the target of the strike as opposed to collateral damage.

4. 14 October 2024 - Odesa port - NS MOON (Belize flagged) was likely damaged in strikes on port infrastructure. The vessel was likely collateral damage in strikes on port infrastructure.

The announcement comes as this government announces a further £2.26 billion for Ukraine as part of the UK’s contribution to the G7 Extraordinary Revenue Acceleration (ERA) Loans to Ukraine scheme.

Through the scheme, $50 billion from G7 countries will be delivered to Ukraine for its military, budget and reconstruction needs. The loan will be repaid using the extraordinary profits on immobilised Russian sovereign assets.

The UK has been at the forefront of work to protect the maritime corridor in the Black Sea. The Maritime Capability Coalition - led by the UK and Norway - is focused on delivering a future naval fighting force for Ukraine and has been instrumental in helping to equip Ukraine’s navy with items such as uncrewed surface vessels, better known as maritime drones, which will protect the corridor.

The UK is donating an additional £120 million toward the Maritime Capability Coalition and is seeking partners to co-fund delivery of hundreds more maritime drones (aerial and uncrewed boats), as well as surveillance radars to protect the Grain Corridor.

And together, the UK and Norway are seeking a further £100 million to co-fund hundreds more.

Recent gifting packages have provided dozens of amphibious all-terrain vehicles and raiding craft, hundreds of anti-ship missiles for coastal defence and river operations, and hundreds of thousands of rounds of ammunition to accompany the machine guns we have provided.

Russia’s brutal and indiscriminate attacks have not been limited to the Black Sea, Putin’s forces have also been targeting civilian infrastructure in Ukraine throughout this year, aiming to make life intolerable for the Ukrainian people, especially as the country heads into winter.

They have attacked thousands of civilian targets, including hospitals and energy infrastructure.

Open-source intelligence shows there has been 1,522 attacks on Ukraine’s health care system since February 2022, 774 attacks damaged or destroyed hospitals and clinics, and 234 health workers have been killed, according to the report of Prime Minister’s Office.

Agro Perspectiva

< Ministry of Agrarian Policy expects exports to rise in dollar terms

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25.10.2024

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