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Ukraine has prepared an alternative to the grain corridor

Jun 27, 2023

The Government of Ukraine and the grain market participants have developed a number of alternative strategies that will allow them to continue exporting agricultural products in the case of a shutdown of the grain corridor.


This was stated by Taras Vysotskyi, First Deputy Minister of Agrarian Policy and Food, during a telethon on Monday, June 26.

"We have several strategies: expanding the throughput capacity of the Danube region and increasing the capacity to transship grain there. We also continue to commission additional crossing points and dry ports on the western border with Poland and Romania," he said.

The official reminded that the state budget for 2023 provides UAH 20 billion for potential insurance of ships carrying grain, which will be ready to continue working in the absence of a grain corridor.

"Alternative measures are being actively developed, in fact, they have been finalized and should help Ukraine to continuously contribute to international food security and ensure exports," he assured.

Mr. Vysotsky expressed hope that this year's financial results will be close to last year's, as price dynamics change daily.

"Information about unfavorable conditions in the US affected corn, which prices went up. Therefore, it is too early to talk about the final grain prices. They will be known closer to September when the growing season in our hemisphere ends. In the end, at least with a minimal deviation, but exports will be close to last year's figures," he hopes.

The aggressor country Russia is 99.9% likely to withdraw from the grain deal in July. As a reminder, this was written by the Ukrainian Foreign Ministry's Ambassador-at-Large Olga Trofimtseva on Telegram on Thursday, June 22.

According to her, the reasons for this decision will be that Turkish President Recep Tayyip Erdogan has successfully won the election and that Russian oligarch Dmitry Mazepin reported to Vladimir Putin that the terminal for ammonia exports from Russia is almost complete, so the Togliatti-Odesa ammonia pipeline is no longer so important.

"What are we going to do about it? The Ministry of Infrastructure says there is a plan B. I have not seen it. But if we are talking about UAH 20 million allocated to compensate for damage to ships, then it is about nothing. This is not a plan," Trofimtseva said.

It is worth noting that Vysotsky talks about 20 billion, while Trofimtseva says 20 million. The difference is a thousand times. We don't know which of them is right.

Author - Serhii Kolomiets, 27/06/2023

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