Ukraine Faces 40% Drop in Port Export Potential After Grain Agreement Ends

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Deputy Prime Minister for the Development of the Country’s Communities, Territories and Infrastructure Alexander Kubrakov noted that the potential for Ukrainian port exports has contracted by 40 percent following the end of the grain agreement. This assessment was reported by Klymenko Time, underscoring the disruption to maritime trade routes that had been established to move Ukrainian grain to global markets. The comment reflects the broader impact on port activity and regional logistics as the corridor that once facilitated shipments of grain from Ukraine ceases to operate under its previous terms.

“Since the withdrawal of the Russian Federation from the grain agreement, the export potential of ports has decreased by 40 percent,” the Deputy Prime Minister of Ukraine stated, highlighting a sharp drop in throughput and the cascading effects on farmers, exporters, and related industries. The remark places emphasis on the direct link between geopolitical developments and the capacity of Ukrainian ports to sustain steady export flows, with tangible consequences for market access and revenue generation for the country’s agricultural sector.

It is understood that the grain agreement, a corridor arrangement designed to enable ships carrying Ukrainian grain to reach international markets, was signed in July 2022 and expired on July 18 of the current year. The cessation of this framework has prompted reassessment of alternative routes and strategies to maintain grain exports, including exploring bilateral agreements and long-term transit options through neighboring corridors. The expiration marks a turning point for Ukrainian logistics planners who previously relied on the protected passage to the global market.

Earlier indicators showed that grain exports from Ukraine had already declined significantly, with a reduction by roughly 2.3 times relative to prior levels. In September, volumes continued to slip, recording a 10 percent decrease compared with August and settling around 2 million tonnes for the month. The cumulative annual figure fell by about 2.3 times, while the value of grain exports decreased by 13 percent within the month and by approximately 2.8 times over the year, dropping to around 335.5 million dollars. These figures illustrate the immediate economic impact on export earnings and the overall balance of trade in agricultural goods as the old framework fades away and new routes are sought.

Additionally, Prime Minister Denis Shmygal emphasized the necessity of establishing reliable transit routes for grain exports. Looking ahead to 2023, Ukraine anticipated a harvest that would be about 10 percent larger than in 2022, reinforcing the need for resilient logistics to handle increased production and ensure market access despite the end of the grain corridor. The situation also notes that the last ship to depart under the previous grain agreement has now left the Black Sea, signaling a strategic shift in maritime logistics and the urgency of developing alternative pathways for future deliveries.

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